What is Hazard Insurance?

Hazard insurance is a term sometimes used to describe the coverages that homeowners insurance provides for certain risks, according to the Consumer Financial Protection Bureau (CFPB). Some common examples of hazards (also referred to as perils) that are often covered by homeowners insurance include fire, theft and vandalism, among others.
Mortgage lenders usually require proof that you have a homeowners insurance policy to help pay to repair damage caused by those hazards.