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Hazard Insurance or Homeowners insurance?  What's the difference?  As a Realtor, I get this question a lot.  In my area, the two terms are used interchangeably.  they are one in the same.  When you are purchasing a home by obtaining a lender financed mortgage, the lender requires that you ahve homeowners insurance to proptect the collateral in case of fire, storm or other damages.  There is no choice but to have homeowners/hazard insurance.  I often get the question as to whether you need homeowners insurance when you are paying cash for a home.  While that is your choice, it is a wise investment to protect your home with homeowners/hazard insurance when you are paying cash or have paid off your mortgage.  The investment in the property is too large to gamble with and my advice is to not take the risk of losing the value because you want to save a few dollars a year on the homeowner's insurance.