Coverage of Hazard

Published: | Updated: October 12, 2016

Definition - What does Coverage of Hazard mean?

Coverage of hazard means that a particular peril is covered on an insurance policy. There are many different types of hazards, and the specific policy will let the policyholder know exactly which hazards are covered. If a policyholder attempts to file a claim for a hazard that is not covered, then they will not be reimbursed, generally.

Insuranceopedia explains Coverage of Hazard

It is important for policyholders to know exactly which hazards they have coverage for. The reason is because some common hazards may not be covered, even if they expect them to be. For example, earthquakes are hazards that are often not covered on many homeowner's policies. In general, the more hazards or perils that a person wants to have covered on an insurance policy, the more expensive the policy is likely to be, and vice versa.


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