Home Insurance Vs Hazard Insurance

When you build a house or purchase one, you invest a big chunk of your savings into it. And why not? It is one of your biggest assets and protecting it from any unforeseen incident is not only a smart move but also your responsibility. This is where home insurance steps in that make sure that you do not have to worry about any unexpected expense.

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But Unexpected Expenses From What?

Well, human life is filled with unexpected scenarios. You never know what might happen in the next minute that could entirely change your life. Similarly, when you purchase a house or build one, you make sure that you get the best deal, at the best location that also fits your budget.

However, the uncertainties in life gave birth to the word “Insurance”. Since we are here talking about home insurance, you might think that how can anything damage a building made of concrete and iron? And that is where you are wrong.

Natural calamities, fire accidents, robberies, etc. are some of the reasons you have to consider as you cannot move your house when there is a flood, hurricane, or a storm and any natural calamity can easily damage your house.

This is why it would be best for you to purchase a home insurance policy so that in case of any unfortunate damage, you have a backup that would provide you with financial coverage for the damage caused.

However, there are times when you go on to purchase a home insurance policy, it might get a bit difficult for you to understand it properly and that can leave you in a bit of a dilemma. In the latter scenario, in case of a hazard or a burglary, you might wonder if the home insurance policy you are about to purchase will cover the damage caused by a hazard as well as the loss caused due to burglary.

Is Hazard Insurance Same As Home Insurance?

Well, the answer to this question is really simple. Hazard insurance is not the same but a part of your home insurance policy but serves a different purpose. Hazard insurance represents a single aspect of your home insurance policy and that is why it is not separate.

They both serve the same purpose that is to provide coverage in case of any unexpected incident causing loss or damage to your house but when we say Hazard then it means any kind of fire damage, explosion, windstorm, etc.

You cannot actually differentiate between hazard insurance and home insurance. As mentioned above hazard cover is just one part of your home insurance policy. Whereas home insurance policy will provide coverage for any specified peril such as loss of use, property damage, personal liability, etc.

Key Differences Between Hazard & Home Insurance

Here are a few differences between Hazard & Home insurance. Have a look at the table below:

Hazard Insurance

Home Insurance

Natural Calamities

Few offers cover at additional or zero premium

Loss or damage caused by vehicle

In case an accident takes place inside house premises

Blast due to gas leak or bomb

Decided after assessment of cause

Broken pipes

A few insurers provide coverage against flood

Electrical failure

On payment of extra premium


On the first loss basis

No Coverage for contents such as garments, devices, furniture, books, etc.

House content such as devices, garments, furniture, books are covered

Damage because of riot and civil commotion are not covered

No cover for civil commotion or damage due to riots


On first loss basis by many insurers

Damage caused due to air conditioner, water heater, etc.

You can purchase add-ons specifically to get cover for damage caused due to a water heater or air conditioner.

To cover chinaware, furs, artwork, etc. you are recommended to purchase a “Floater plan” because hazard insurance does not cover such items.

If your house is located in a natural calamity-prone area then you are suggested to purchase another policy or you can purchase add-ons if available.

*The coverage mentioned in the table mentioned above varies from one home insurance providing company to another.


Now you must have understood the key differences between the coverage of home insurance and hazard insurance. Also, while purchasing a home insurance policy it is recommended to learn about inclusions, exclusions, add-ons if you need any in detail as well as compare prices using the website. You can also calculate the premium amount using a home insurance premium calculator as many insurers provide this tool online on their websites.

Written By: PolicyBazaar - Updated: 15 March 2022
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.