Hazard Insurance
Hazard insurance covers building damage from specified perils (fire, wind, lightning, vandalism). Required by mortgage lenders, it is a component of homeowner's policies. Florida premiums are among the nation's highest due to hurricane exposure.
Covered Perils
- Fire and smoke damage
- Windstorm and hail (may require separate FL policy)
- Lightning strikes
- Explosions, vandalism, falling objects
Florida Real Estate Requirements
- Proof of coverage required before closing
- Must cover loan amount or replacement cost
- Lender listed as loss payee
- Premiums typically escrowed monthly
- Wind/hurricane may need separate policy
- Flood insurance separate (FEMA zones)
Exclusions
Flood, earthquake, sinkhole (endorsement available), mold, termites, wear and tear, intentional damage, and war. Coastal wind often excluded from standard policies.
Related Terms
- Closing — Insurance required at closing
- Encumbrance — Mortgage insurance requirements
- Equity — Property protection
Barnes Walker Real Estate
Barnes Walker's attorneys advise on hazard insurance requirements for Florida real estate transactions. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC