Coverage Of Hazard

What Does Coverage Of Hazard Mean?

Coverage of a hazard means that a specific peril is included in an insurance policy. There are various types of hazards, and the policy will specify which ones are covered. If a policyholder files a claim for a hazard that is not covered, they typically will not receive reimbursement.

Insuranceopedia Explains Coverage Of Hazard

It is crucial for policyholders to know exactly which hazards are covered by their insurance. Some common hazards may not be included, even if policyholders expect them to be. For example, earthquakes are often not covered under many homeowner’s policies. Generally, the more hazards or perils a person wants to be covered under an insurance policy, the higher the cost is likely to be, and vice versa.