Hazard Insurance vs. Homeowners Insurance: What’s the Difference?

If you’re buying a home, you may be wondering, “What is hazard insurance?” or “Is hazard insurance the same as homeowners insurance?” They’re not quite the same. Hazard insurance is a term used by mortgage lenders. It refers to coverage that helps protect your home from various hazards such as wind, fire, hail and theft. It’s the same as your dwelling coverage on a standard home policy.
Author:
Lily DiGregorio
Lily DiGregorio,Staff Copywriter
Lily DiGregorio
Staff copywriter specializing in auto and home insurance for The Hartford.
Updated: 05/27/2026
Read Time: 5 minutes
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Key Takeaways

  • Hazard insurance refers specifically to dwelling coverage, which helps protect the structure of your home from hazards like fire, wind, hail, theft and vandalism.
  • A standard homeowners insurance policy includes hazard (dwelling) coverage, which is often required by mortgage lenders, plus other coverages and benefits to extend your protection.
  • Hazard insurance costs vary because it’s part of your broader homeowners policy and depends on factors like your home’s location and size.
 

What Is Hazard Insurance?

Hazard insurance generally refers to coverage for the structure of your home only and helps protect it from “hazards,” such as fire, wind, hail or vandalism. It’s not a separate standalone policy but rather a component of a standard homeowners insurance policy.
 

Why Does Your Mortgage Lender Mention Hazard Insurance?

Mortgage lenders typically use the term “hazard insurance” because they’re primarily concerned with protecting the physical structure of the home. Your mortgage lender may require homeowners insurance that includes hazard coverage as a condition of your loan. This may create the misconception that you can buy hazard coverage separately from homeowners insurance, which is not accurate. If your lender has specified that you need hazard or dwelling coverage, getting a standard homeowners policy will typically satisfy their requirements.
Example:
Let’s say a fire causes $5,000 worth of damage to your home. If your policy has a $1,000 deductible, your homeowners/hazard coverage would pay the remaining $4,000 toward repairs.
 

What Does a Hazard Insurance Policy Cover?

Hazard insurance helps cover damage to your home’s structure caused by sudden and unexpected events, such as:
 
  • Fire
  • Wind
  • Hail
  • Theft
  • Vandalism
  • Explosions
Keep in mind that covered losses can vary by policy. It’s important to review your policy documents to confirm which hazards are specifically covered.
 

What Is Not Covered Under Home Hazard Insurance?

Standard hazard insurance doesn’t cover:
 
  • Flooding: You’ll need a separate flood insurance policy to help cover damages from floods.
  • Earthquakes: You may be able to add an endorsement to your homeowners insurance policy to help safeguard against earthquake damage.
  • Routine maintenance and wear and tear: Damage from neglect or gradual deterioration isn’t typically covered.
  • Sewer backup: You can add a rider or endorsement to your homeowners policy to help cover sewer backups. 

What Types of Coverage Are Included in Hazard Insurance?

A standard homeowners insurance policy includes various types of coverages that work together to protect you, your home’s structure and your belongings from covered hazards:

Dwelling Coverage

Dwelling coverage is a standard part of your homeowners insurance policy. It helps protect your home and its attached structures from hazards like fire, lightning and vandalism. You can use this coverage to help pay for repair or replacement costs after a covered loss occurs.

For AARP members, The Hartford’s dwelling coverage can be customized to help meet your specific needs, including options to insure your home for its full replacement cost.

Other Structures Coverage

If you have structures that aren’t attached directly to your home, like a shed or detached garage, other structures coverage can help pay for damages to these detached structures.

Personal Property Coverage

Personal property coverage can help replace items like electronics, clothing and furniture if they’re damaged or destroyed by a covered loss.

Liability Coverage

Liability coverage is another key component of a homeowners insurance policy. It can help protect you financially if someone is injured on your property or if you accidentally cause damage to someone else’s property. This coverage is different from hazard insurance, but it’s included in a comprehensive homeowners policy.

Additional Living Expenses Coverage

If you can’t live in your home due to a covered hazard, additional living expenses coverage can help pay for temporary housing, meals and other costs while your home is being repaired or rebuilt.
 
 

Hazard Insurance vs. Homeowners Insurance: Key Differences

Your hazard and homeowners coverages work together to help protect you. We’ve compiled key coverage differences in this table:
 
  Hazard Insurance Homeowners Insurance Policy
Covers Home Structure Yes Yes
Covers Personal Belongings No Yes
Covers Liability No Yes
Covers Additional Living Expenses No Yes
Available as a Standalone Policy No Yes
Required by Mortgage Lenders Often Often
Covers Flood Damage No No (separate policy needed)
 
Having hazard insurance coverage, also known as dwelling coverage, included in your home policy can help cover damage caused by: 
 
  • A tree falling and destroying part of your roof
  • Your basement getting water damage from burst pipes
  • Lightning burning the siding on your home

How Much Does Home Hazard Insurance Cost?

The cost of hazard insurance is included in your homeowners insurance premium. Prices vary and are based on several factors, such as your:
 
  • Home’s value and rebuilding costs
  • Policy limits and deductible amount
  • Home’s age, construction type and condition
  • Location and local risk factors
  • Claims history
Important:
The Hartford requires you to insure your home for 100% of its replacement cost. That way, if you need to rebuild it, your insurance can help cover all construction expenses.
 

How To Get Hazard Insurance

Hazard insurance isn’t purchased as a stand-alone product. To get hazard insurance, you need to get homeowners insurance. To get started:
 
  1. Assess your coverage needs: Consider your home’s value, the cost to rebuild it and the value of your personal belongings.
  2. Get a quote: You can get a homeowners insurance quote online or by calling The Hartford’s representatives at 877-422-2345.
  3. Choose your coverage limits and deductible: While The Hartford requires all homes to be insured at 100% of their replacement cost, you can enjoy customizable coverage options to meet your unique needs.
  4. Customize your policy: Add optional coverages like equipment breakdown or valuable items blanket to create a policy specific to your needs.
AARP members can access exclusive benefits and discounts with AARP Home Insurance from The Hartford. In fact, The Hartford offers the only home insurance endorsed by AARP. Our customer service representatives specialize in the over 50 market, so you can feel confident your home is getting the right protection from an experienced insurer.
 

Additional Home Insurance From The Hartford

Beyond homeowners insurance coverage, The Hartford also offers these products to help protect AARP members:
 
  • Renters insurance, which helps protect your possessions and valuables at a property you lease.
  • Condo insurance, which provides customizable levels of protection for your condominium at a rate that fits your budget.

Frequently Asked Questions About Hazard Insurance

No. Hazard insurance is a term used by mortgage companies to refer to dwelling coverage, which helps protect the physical structure of your home. It’s one component of a home insurance policy.
Hazard insurance helps protect your home’s structure from covered losses like fire or theft and is different than a mortgage payment. This coverage is required by most lenders to help protect their financial investment in your home.
Hazard insurance coverage is the same as dwelling coverage, which helps safeguard your property’s physical structure from covered damage.
No. Hazard insurance and most home insurance policies don’t cover flooding. You’ll need to purchase a separate flood insurance policy.
No. Hazard insurance and most home insurance policies don’t provide coverage for earthquakes. But depending on your insurance company, you can add additional coverage to extend your protection.

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Summaries of coverages and policy features are for informational purposes only. In the event of loss, the actual terms and conditions set forth in your policy will determine your coverage.
 
AARP and its affiliates are not insurers. Paid endorsement. The Hartford pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP membership is required for Program eligibility in most states.
 
The AARP Auto Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA, by Hartford Underwriters Insurance Company; in WA, by Hartford Casualty Insurance Company; in MA, by Trumbull Insurance Company; and in PA, by Nutmeg Insurance Company and Twin City Fire Insurance Company. The AARP Home Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA by Property and Casualty Insurance Company of Hartford; in WA, by Trumbull Insurance Company; in MA, by Trumbull Insurance Company, Sentinel Insurance Company, Hartford Insurance Company of the Midwest, and Hartford Accident and Indemnity Company; and in PA, by Nutmeg Insurance Company. The Hartford does not write new Home business in all areas, including the states of CA and FL. Savings, benefits and coverages may vary and some applicants may not qualify. The Program is currently unavailable in Canada and U.S. Territories or possessions.
 
1 In Texas, the Auto Program is underwritten by Redpoint County Mutual Insurance Company through Hartford of the Southeast General Agency, Inc. Hartford Fire Insurance Company and its affiliates are not financially responsible for insurance products underwritten and issued by Redpoint County Mutual Insurance Company. The Home Program is underwritten by Hartford Insurance Company of the Southeast.
 
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