Simmy Hundal
What is Hazard Insurance?
As part of obtaining a loan, Hazard Insurance is typically required by lenders. Whether you're applying to a SBA Loan, a FHA Loan, Conventional Mortgage Loan, or otherwise, hazard insurance is a key part of qualifying. Hazard Insurance is another way of saying 'Property Insurance against Perils.' Let's break that down into 2 parts: Property Insurance & Perils.
Property Insurance
Property Insurance is coverage for assets owned by you, the policyholder. If you experience a loss by a covered peril, you are able to claim the loss in assets with Property Insurance. Examples include:
Real Estate
Personal Property
Loss of Income
Marine
Inland Marine
Crime
Perils
Perils are events that damage property or lead to loss. Typically covered perils by Property Insurance policies include:
Fire or Lightning
Riot or Civil Commotion
Aircraft
Internal Explosion
Vehicles
Vandalism or Malicious Mischief
Smoke
Depending on the Coverage Form of your Property Insurance policy, you may be afforded coverage to more perils than that listed above. Two types of perils that usually require a special policy endorsement or a separate policy altogether include:
Earthquake
Flood

Fenix Risk Management is an independent insurance agency proudly serving families & businesses in GA, AL, NC, SC, TN, FL, KY, NJ, TX & VA.Â
Simmy is an adviser at Fenix Risk Management, helping businesses and individuals navigate their insurance portfolios.Â
Note: the opinions expressed in this blog are that of the author, not of any other individual or organization referenced. Discuss details of your insurance with a trusted adviser as this blog is unspecific to your coverage.