What Is Hazard Insurance?
Hazard insurance covers expenses from substantial damages to a home caused by natural disasters like floods, fires and earthquakes. Obtain hazard insurance for anything that is not covered by homeowner's insurance with advice from a financial adviser and insurance broker in this free video on insurance.
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This is John Pinelli, financial representative, talking to you today about hazard insurance. When we talk about hazard insurance, we're typically talking about specific events such as flooding, fire, earthquakes that could occur, which would...which would potentially cause substantial damage to your home. It's important to have some coverage for these specific perils, hazards so that if one of these does occur and it's not covered under your typical homeowners policy, that you will be indemnified for that particular loss. Hazard insurance can actually be quite expensive depending on your location and depending on the type of perils you're protecting against. Things like earthquake insurance, if you're in California, can be quite expensive. If you can get it at all, flood insurance can be extremely expensive in many areas, even if you're not at risk for a flood. Flood insurance is often very expensive because of the extensive damage that it can cause and because of the extension...extensive damage that it has caused in the past to places like the South -- Louisiana, a lot of the hurricanes that can occur. Hurricane Katrina caused a lot of damage. It can be quite expensive, and it can be quite a burden for the insurance company to place on their shoulders. So that's why these coverages can be extremely expensive. But they could also be fairly affordable. Again, it just depends on the level of risk that the insurance company is taking on. If your backyard is right on a river, the flood insurance could be extremely expensive. You might not be even able to get it. But if you're in the middle of the desert, it's probably not going to be too expensive. So just keep that in mind when looking for obtaining insurance for these hazards that can occur. So this has been John Pinelli, financial representative, talking to you today about hazard insurance.