Hazard Insurance Vs Home Insurance

Giving a major chunk of your life’s earnings – if one investment calls for such an act, it is buying a roof over your head. Your home. Hence going a couple of extra mile to protect that asset from all possible threats (at least financially) is definitely worth it. And of course it begins with buying a suitable home insurance policy with the right coverage. By planning into the future and understanding what you may require under grim situations, you can save yourselves a lot of anguish, resources and time.

Calamitous events, whether natural or manmade, are as inescapable as they are unpredictable and mostly occurs without notice. But although we cannot prevent catastrophes at all times, we can expect their possible repercussions, comprising property damage, disruption in service availability, shortage of essential supplies and other inconveniences. While policies can differ from company to company, any regular homeowner’s insurance scheme will come down to ‘Hazards Insurance Vs Home Insurance’.

Let us check out the key differences between hazard insurance and home insurance:

Hazards Insurance	Home Insurance
Fire/ Smoke & related perils	Covered on first-loss basis
Natural calamities	Some offers cover at no or additional premium
Do not cover for contents such as garments, furniture, devices and books against destruction/ loss	Contents such as garments, furniture, devices and books against damage/ loss covered
Damage caused by vehicles	Covered under accidents in the premises
Robbery/ Sabotage	Covered on first-loss basis by most firms
Blast	Will be decided after assessment of cause
Damage caused by water heater, air conditioner or in-home sprinkler system	Will be covered if specifically requested as add-ons
Frozen or ruptured pipes	Only some insurance companies offer flood cover
Electrical failures are covered	Available if you pay extra premium
Civil commotion or riot related damage not covered	No Cover offered for this
If you own especially prized belongings such as electronic gadgets, porcelains, chinaware, furs or artwork, you are advised to get a "floater" to indemnify them. This is because the hazard insurance in your home insurance scheme is likely to restrict the coverage on such items.	If your house is located in a place vulnerable to earthquake or floods, you might need another policy or add-on to handle those aspects.

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