What Is Hazard Insurance in NH Real Estate and Why Do Lenders Require It?
- Jim Johnson
- 3 days ago
- 2 min read
🏡 What Is Hazard Insurance in NH Real Estate and Why Do Lenders Require It?
When buying a home in New Hampshire, one of the first things lenders require is hazard insurance — a critical protection that covers the structure of your home against damage from unexpected events.
Hazard insurance is typically included as part of a standard homeowners insurance policy, but lenders need proof before they will fund your mortgage.
Here’s what NH buyers need to know.
⭐
What Is Hazard Insurance?
Hazard insurance protects the structure of your home (not personal belongings) from events such as:
✔ Fire
✔ Windstorms
✔ Hail
✔ Lightning
✔ Snow or ice damage
✔ Falling trees
✔ Vandalism
✔ Burst pipes
In New Hampshire — where storms, snow loads, and falling limbs are common — hazard coverage is essential.
⭐
Is Hazard Insurance the Same as Homeowners Insurance?
Yes.
Hazard insurance is one component of a homeowners insurance policy.
You cannot buy a mortgage without homeowners insurance, and homeowners insurance always includes hazard coverage.
⭐
Why Do NH Lenders Require Hazard Insurance?
Lenders require hazard insurance because:
✔ Your home is their collateral
✔ Without insurance, they could lose their investment
✔ NH weather can cause unexpected damage
✔ They must ensure the property is protected from day one
You must show proof of coverage before receiving Clear to Close.
⭐
What Does Hazard Insurance Cover in NH?
It covers the home’s structure:
✔ Roof
✔ Siding
✔ Foundation
✔ Windows
✔ Built-in systems (electrical, plumbing, heat)
✔ Attached structures (garage, porch)
Items not covered unless added separately:
❌ Flood damage
❌ Earth movement (earthquakes, landslides)
❌ Personal belongings
❌ Septic systems or wells unless endorsed
❌ Detached buildings (unless included in policy)
⭐
How Much Hazard Coverage Do You Need?
Most lenders require enough insurance to cover:
✔ The replacement cost of the structure
—not the market value
—not the land value
This ensures the home can be rebuilt in case of disaster.
⭐
Hazard Insurance Cost in New Hampshire
Typical NH annual premiums range from:
💲 $900 – $1,800 per year, depending on:
✔ Location
✔ Age of home
✔ Heating system (oil/wood homes sometimes higher)
✔ Roof condition
✔ Fire department distance
✔ Coverage limits
Homes with wood stoves or fireplaces may require additional inspections.
⭐
When Does a Buyer Provide Proof of Insurance?
Buyers must submit proof:
✔ Before receiving the Closing Disclosure
✔ Before the lender issues “Clear to Close”
✔ Before the closing date
Most lenders require the Declarations Page from the insurance company.
⭐
Bottom Line
Hazard insurance protects both the homeowner and the lender from unexpected damage to the structure of the home.
In New Hampshire — where storms, wind, snow loads, and falling trees are common — hazard insurance is not just required… it’s essential.
Jim Johnson — Real Estate Agent
58 NH Route 25A
Wentworth, NH 03282
P: (857) 249-7392
Licensed New Hampshire REALTOR® with Three Hills Real Estate Services
Broker Email: info@ThreeHillsRES.com
Broker Website: www.ThreeHillsRES.com
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