Hazard insurance protects you, the homeowner, against structural damage caused by natural disasters; homeowners insurance is a financial protection against theft and damage to your home and belongings sustained in more mundane ways.Click to see full answer. Similarly, you may ask, do you have to have hazard insurance and homeowners insurance? When you need hazard insurance Having homeowners insurance to cover you against hazards is not a legal requirement. For example, if like most people you take out a mortgage to buy a home your lender will require you to have a certain level of hazard insurance. The mortgage is secured against the value of the property.One may also ask, is hazard insurance separate from home insurance? Hazard insurance isn’t separate from your home insurance, but is basically a type of coverage included on your policy. It’s the part of your policy designed to protect the actual structure of your home from hazards: Fires or lightning. Wind or hail damage. Secondly, what is hazard insurance on a mortgage loan? Hazard insurance generally refers to coverage for the structure of your home only. Your mortgage loan provider may require hazard insurance at minimum before they will issue you a loan, because that is the only portion of the homeowners insurance policy directly related to the home structure itself.What is Property hazard insurance?Hazard insurance is coverage that protects a property owner against damage caused by fires, severe storms, hail/sleet, or other natural events. As long as the specific weather event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred.