what is hazard insurance 
hazard insurance is coverage that protects a property owner against damage caused by fires severe storms hail sleet or other natural events as long as the specific weather event is covered within the policy the property owner will receive compensation to cover the cost of any damage incurred 1depending on the policy the property owner may need to pay their premiums to the mortgage lender who holds the money in an escrow account and pays the insurance company on the property owner s behalf mortgage lenders often require you to have hazard coverage through a homeowners policy however it s important to make sure your policy covers the most common hazards 2