Mortgages & Loans
What Is Hazard Insurance ?
Hazard insurance protects homeowners against property damage caused by natural disasters such as a fire or severe storm. If your property is damaged during a catastrophe, hazard insurance should cover the costs to rebuild your home. Banks and lenders require that you get a hazard insurance policy before you buy or refinance a home. Generally, you have to pay for the first year of hazard insurance on the closing date.
Note If you need professional help with "Mortgages & Loans" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.