Hazard Insurance

Definition

• Insurance coverage that compensates for physical damage to a property from natural disasters such as fire or other hazards. Depending where a piece of property is located, mortgage lenders may also require flood insurance or policies covering windstorms (hurricanes) or earthquakes.
• An insurance policy, which is usually purchased in addition to a property insurance policy that provides coverage for disasters that are too high-risk for a standard property insurance policy.

Synonyms
high risk policy, extra insurance, extraordinary coverage, peril insurance

Related Terms and Acronyms

• Catastrophe Hazard — Definition,
  • An event, such as a hurricane or earthquake, that poses a risk of a catastrophic loss.
• Clear-Space Clause — Definition,
  • A clause that requires insured property to be located a minimum distance from surrounding property.
• Concurrent Causation — Definition,
  • If there is more than one cause of damage in an insurance claim and one cause is covered while the other is not, the insurer is obligated to cover the loss.
• Fire Insurance — Definition,
  • Insurance that covers losses from fire damage to insured assets.
• Flood Insurance — Definition,
  • An insurance policy that provides coverage for the damages resulting from flooding. Canadian homeowners are currently unable to purchase flood insurance.
• Flood Plain (flpl) — Abbreviation,
  • Land that is prone to inundation.
• Hazard — Definition,
  • Anything that poses a potential risk of injury or damage.
• Hazardous Activity — Definition,
  • Activities that pose a high risk of injury and as such are not covered by an insurance policy.
• Homeowners Insurance — Definition,
  • A policy that includes hazard coverage, covering loss or damage to property and/or assets located within, as well as coverage for personal liability and theft.
• Incurred But Not Reported (IBNR) — Acronym,
  • An estimate of how much an insurance company owes to policyholders for losses that have already occurred but have not yet been reported.
• Insurance (insur) — Abbreviation,
  • An arrangement where one party provides financial protection to another party for specific damages or losses.
• Peril — Definition,
  • Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
• Property Insurance — Definition,
  • Insurance that provides coverage for damages to property from a number of perils.
• Uninsurable Peril — Definition,
  • Something that cannot be insured due to a high risk of loss.