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Hazard Insurance in Milwaukee
Hazard Insurance can be a great thing to have for many homeowners, as it does protect homeowners against damages that may be caused by fires, severe storms, earthquakes or other natural disasters that could hit home.
Mother nature is unpredictable, and it is wise to expect the unexpected a lot of times, especially when it boils down to a person’s investment. You can never be too prepared!
Wisconsin Hazard Insurance Overview
To attain a Hazard Insurance for a property, the property owner is usually required to pay for at least a year’s worth of premiums during the time of closing. However, this may depend on the specific details of the policy.
What Hazard Insurance Covers
Hazard insurance is commonly purchased as a supplement of basic homeowners insurance, covers the structure of the home as well as its values if a covered disaster happens. Many hazard insurance policies also protects a homeowner’s personal liability in case someone is injured due to an accident on your property.
Requirements For Hazard Insurance
Most lenders in general will not only require you to obtain hazard insurance but may also require for you to pay the first premium at the time of closing. Many lenders may require the first year’s premium at closing, out of which the first month’s premium is paid and the rest is deposited in an escrow account. For each consecutive month, the hazard insurance premium is paid from the escrow account.
Hazard Insurance vs. Mortgage Insurance
Hazard insurance is not the same as mortgage insurance. Hazard insurance pays for property damage, medical expense claims for accidents on the property, repairs to the structure and any additional living expenses if you should take a loss by a covered event. A mortgage insurance plan protects the lender. It is designed to take care of the mortgage should you default on the payments.
How Much Hazard Insurance You Should Have
The amount of hazard insurance coverage you pay for typically depends on the value of your house and valuables. Your lender will require at least enough to fully rebuild the home in the event it is destroyed. You’ll want to add coverage to include personal items, such as clothing, televisions and other things that contribute to your daily life. Your insurance agent can help you determine the replacement value of your belongings and how much personal liability coverage you need in addition to the replacement cost of the structure.
Where You Can Get Hazard Insurance
Your lender might recommend an agent; however, you can get your policy from the insurance company of your choice, as long as the policy’s minimum coverages meet or exceed the lender’s requirement.
Keep in mind that as long as your policy specifically states what type of disasters/events it covers, you should be protected from any damages and/or losses, should they ever occur.