Hazard insurance serves two purposes:

1. Protects both homeowners and lenders against natural disasters such as fires or tornadoes. Flood insurance riders are optional unless your property is deemed to be in a flood hazard area, in which case it is mandatory in obtaining a mortgage loan.
2. Protects homeowner's contents due to loss or theft.

Hazard insurance premiums will vary depending on the following:

1. Coverage amount - lender requires the lesser of the loan amount or appraised value.
   TIP: Don't over insure! You may not need as much coverage as you think. Remember - land does not burn, therefore, you only need to cover costs, remove debris, and to replace dwelling.
2. Deductibles - as with all insurance premiums this will vary depending on coverage amounts and deductibles selected.
3. Credit - having poor credit can increase premium amount and in some cases make one uninsurable.
4. Age of home.
5. Roof - composition overlays. (over wood)

Generally speaking, the average premium will be approximately .625% of coverage amount. Bear in mind that this percentage may be affected by the above factors.

For more information about hazard insurance, please fill out our online form, or contact us today.