Texas · Hazard insurance
Hazard insurance is the dwelling part of the homeowners policy
Lenders say “hazard” because they want the house rebuilt after fire, wind, hail, and similar perils, with their name on the mortgagee clause. That coverage is Coverage A inside a homeowners or dwelling policy. It is not a second product you buy beside homeowners insurance, and it is not flood.
Texas homeowners and policy types. The product: Texas homeowners products.
What the lender’s requirement leaves out
Flood is outside water. Hazard does not include it. If the house is in a high-risk flood zone, the lender requires a flood policy on top. Texas flood. On the coast, wind and hail may be excluded from the private homeowners policy and written by TWIA. That wind policy is still not flood. What TWIA covers. Hail inland is usually on the homeowners policy, under a percent deductible. Hail season.
Liability, your belongings, and loss of use can be on the same homeowners policy. The lender is not buying those for you. A force-placed policy, if you fail to show proof, protects the lender’s interest in the building. It is often expensive and it usually does not cover your contents.
