Coverage Of Hazard
What Does Coverage Of Hazard Mean?
Coverage of a hazard means that a specific peril is included in an insurance policy. There are various types of hazards, and the policy will specify which ones are covered. The same idea sits behind hazard insurance, which pays only for damage caused by perils specifically named in the contract. If a policyholder files a claim for a hazard that is not covered, they typically will not receive reimbursement.
Insuranceopedia Explains Coverage Of Hazard
It is crucial for policyholders to know exactly which hazards are covered by their insurance. Some common hazards may not be included, even if policyholders expect them to be. For example, earthquakes are often not covered under many homeowner’s policies. Homeowners who want that protection usually need a separate earthquake policy or an endorsement, so confirming whether your homeowners insurance covers earthquakes is a sensible step when choosing a plan. Generally, the more hazards or perils a person wants to be covered under an insurance policy, the higher the cost is likely to be, and vice versa.
