Hazard Insurance

Sam · Posted: Sat Apr 03, 2004 2:36 am Post subject: Hazard Insurance

Hazard Insurance or Hazard Property Insurance is an insurance whereby an insurer, for a premium, protects the insured against monetary loss due to physical damages on property from natural disasters caused by fire, windstorms and other common hazards.

For example, Tom owns a house of $200,000. Due to severe storm, he had a loss of $4,000 to property. The home hazard insurance policy makes up for this loss.

To obtain the property coverage in an insurance policy, an underwritten by the Federal Government needs to be purchased. Number of common variables should be considered by the insurer before making a decision on the policy.

Coverage for loss of insured data:
In the event of loss of the insured data on the computer, an endorsement on this coverage should be considered.
Coverage for Defective Property:
The insurance company provides coverage for repair and replacement of a defective property on the ground that such losses are the result of physical damage.
Business Interruption Coverage:
Property insurance includes "Business Interruption coverage", which covers the losses associated with a business not under operation and the cost of restarting the business.
Guaranteed Replacement Value:
Hazard Property insurance includes "Guaranteed Replacement Value Property Coverage", in which the insured is able to replace each covered property at the current replacement cost.
Guaranteed Replacement Value:
Hazard Property insurance includes "Guaranteed Replacement Value Property Coverage", in which the insured is able to replace each covered property at the current replacement cost.
Proof of Loss:
The owners should maintain a record of all of the property owned by the entity. Sometimes photographs or videotape are used to establish the physical condition and thus the property is valued.

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Recently I have got a notice saying that my 'hazard insurance' has been cancelled. My lender has placed the insurance with some other company. I feel they are charging more. what should i do?

Caron · Posted: Thu Aug 18, 2005 10:56 pm Post subject:

Hi Robert

Welcome to MortgageFit forum.

If you have not delayed your mortgage payments by more than 30 days, then according to Section 6 of RESPA the lender should make the payments for taxes and insurance within the specified time.

What I would suggest is that you contact your lender and ask him the reason of such delay. But in case the lender does not give proper explanation, then I would advise that you file a complaint with the Department of Housing and Urban Development or the Consumer Protection office of your State Attorney General's office. It is better that you approach a legal advisor for further course of action.

Hope we have been able to guide you.

Please feel free to give us your feedback.

Regards,
Caron

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I need hazard and flood insurance on my home. How do I get this done today?

Samantha · Posted: Fri Jan 27, 2006 9:48 am Post subject:

Hi Winns,

Welcome to MortgageFit Forums.

Hazard insurance is covered in homeowner’s insurance policies in most cases. So, if you have taken a mortgage and have covered homeowners insurance, required in most cases, then you might be already having it.

You should check with your lender regarding this insurance. If you are not covered, then he is going to help you in the process.

Flood insurance is not mandatory and is not covered in most homeowner’s policies. If you require to be covered under that insurance, it can be purchased from the National Flood Insurance Program (NFIP).

You can purchase it through your insurance agent or insurance company. You may contact FEMA, federal Emergency Management Agency for more information.

You may also refer this section on flood insurance for some more details.

Feel free to ask if you have more queries.

God bless you.

For MortgageFit,
Samantha

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