Hazard Insurance


  • Insurance coverage that compensates for physical damage to a property from natural disasters such as fire or other hazards. Depending where a piece of property is located, mortgage lenders may also require flood insurance or policies covering windstorms (hurricanes) or earthquakes.
  • An insurance policy, which is usually purchased in addition to a property insurance policy that provides coverage for disasters that are too high-risk for a standard property insurance policy.

high risk policy, extra insurance, extraordinary coverage, peril insurance

Related Terms and Acronyms

  • Catastrophe Hazard Definition,
    • An event, such as a hurricane or earthquake, that poses a risk of a catastrophic loss.
  • Clear-Space Clause Definition,
    • A clause that requires insured property to be located a minimum distance from surrounding property.
  • Concurrent Causation Definition,
    • If there is more than one cause of damage in an insurance claim and one cause is covered while the other is not, the insurer is obligated to cover the loss.
  • Fire Insurance Definition,
    • Insurance that covers losses from fire damage to insured assets.
  • Flood Insurance Definition,
    • An insurance policy that provides coverage for the damages resulting from flooding. Canadian homeowners are currently unable to purchase flood insurance.
  • Flood Plain (flpl) Abbreviation,
    • Land that is prone to inundation.
  • Hazard Definition,
    • Anything that poses a potential risk of injury or damage.
  • Hazardous Activity Definition,
    • Activities that pose a high risk of injury and as such are not covered by an insurance policy.
  • Homeowners Insurance Definition,
    • A policy that includes hazard coverage, covering loss or damage to property and/or assets located within, as well as coverage for personal liability and theft.
  • Incurred But Not Reported (IBNR) Acronym,
    • An estimate of how much an insurance company owes to policyholders for losses that have already occurred but have not yet been reported.
  • Insurance (insur) Abbreviation,
    • An arrangement where one party provides financial protection to another party for specific damages or losses.
  • Peril Definition,
    • Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
  • Property Insurance Definition,
    • Insurance that provides coverage for damages to property from a number of perils.
  • Uninsurable Peril Definition,
    • Something that cannot be insured due to a high risk of loss.
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