Hazard insurance

Loan documents and escrow statements sometimes say hazard insurance instead of homeowners insurance. They usually mean the policy that protects the house against named hazards. Fannie Mae keeps a separate heading, so this page does too. The everyday consumer term for the same household policy remains homeowners insurance.

Fannie Mae’s consumer glossary includes a Hazard insurance heading distinct from homeowners insurance. That is why this page exists. Coverage details still belong to the policy, not to this definition.

Escrow lines labeled hazard are easy to confuse with flood coverage or with mortgage insurance.

• Homeowners insurance

Hazard insurance is not flood insurance and not mortgage insurance.