| hazard insurance | |
noun | |
| insurance that provides protection against certain risks such as storms or fires |
Hazard Insurance
Insurance protecting a property owner against damages caused by fires or severe storms. If the owner lives in an area that is prone to natural disasters, like earthquakes and floods, he or she may need a separate policy.
Investopedia Commentary
This is generally separate from homeowner's insurance in high risk areas. For example, Florida is hurricane-prone and therefore considered high risk.
See also: Equalization Reserve, Life Insurance