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  • Writer's pictureSimmy 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 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. 

Simmy is an adviser at Fenix Risk Management, helping businesses and individuals navigate their insurance portfolios. 

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.

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