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| Hazard InsuranceAn insurance policy selected by the borrower to cover the property against loss due to hazards such as fire, hail, etc. The borrower pays an annual premium for this coverage. In many cases, the lender requires that the borrower pay 1/12 of this annual amount every month, included with the borrower`s monthly payment of principal and interest. These funds are held in reserve on behalf of the borrower in an escrow account. See also:Hazard InsuranceHome InspectionHomeowners InsuranceHomeowners WarrantyHomeowners` AssociationHUD
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