What does the term "hazard insurance" encompass?

The term "hazard insurance" specifically refers to coverage for property damage caused by specific hazards, such as fire, flood, earthquakes, or other perils that can result in physical damage to a property. This type of insurance protects property owners and landlords from financial losses due to damage to their structures or properties, which is crucial for maintaining the value and viability of real estate investments.

Hazard insurance is designed to cover direct physical damage to the property itself, ensuring that in the event of a loss, the policyholder can recover and repair the property without facing overwhelming financial burdens. This distinguishes it clearly from liability coverage and other forms of insurance that address different aspects of risk management.