Most mortgage lenders require homeowners to have hazard insurance. This protects the lender’s financial interest in your home before it’s paid off. Before you close on your home, your lender will ask to see proof of home insurance with hazard coverage. If you file a hazard insurance claim, the mortgage lender is typically responsible for holding the money to ensure that the proper repairs are made to their standards. 

Another name for hazard insurance is dwelling insurance, which is more commonly used. Hazard insurance and dwelling insurance may be used interchangeably since they reference the same thing.  

Hazard insurance is a type of insurance that covers the physical structure of your home, as well as the roof and foundation. Hazard insurance also covers attached structures, major home systems, and permanent interior features, like cabinets, flooring, walls, and large appliances. Hazard insurance is included with every standard home insurance policy.