Hazard insurance is a specific section of a homeowner's insurance policy that covers damage to a home in the event of wind, fire, vandalism, smoke or other disasters. It is required by all mortgage lenders to secure a home loan to ensure that their assets are protected. Physical or structural damage to a property is covered under hazard insurance. In the majority of cases, hazard insurance is factored into a homeowner's monthly mortgage payment, and premiums are placed into the home's escrow account. Buyers may shop around and choose the provider of their hazard insurance, but certain coverage terms must always be met to satisfy the mortgage lender. In areas where structural damage is more likely, such as earthquake or tornado zones, additional hazard insurance may be required, or certainly advisable.