Hazard Insurance
A contract whereby any insurer, or a premium, undertakes to compensate the insured for a loss on a specific property due to certain hazards.

Hedge Funds
Sophisticated combinations of investments, designed to hedge against large swings in market value.

The Hedge Fund Research, Inc. (HFRI) Fund of Funds Index
An index that reflects the equal-weighted performance of approximately 800 funds of funds. Funds of funds invest with multiple managers through funds or managed accounts. The strategy designs a diverse portfolio of managers with the objective of significantly lowering the risk (volatility) if investing with an individual managers.

Heir
One who inherits from the estate of a person who has died.

Holdback
Money held back by a title company, at the lender's instructions, until a contingency is met. Typically, a repair to the home. One and one half to double the estimated amount necessary is held back. Upon completion of repairs, the holdback is released.

Homeowners Association
(1) An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area.
(2) An association formed by the builder of condominiums or planned developments and required by statute in some states. The builder's participation as well as the duties of the association are controlled by statute.

Homeowner's Insurance
Includes the coverage of hazard insurance plus added coverage such as personal liability, theft away from the home and other such coverage.

Homeowners Policy
A multiple peril insurance policy commonly called "package policy". It is available to owners of private dwellings and covers the dwelling and contents in the case of fire or wind damage, theft, liability for property damage, and personal liability.

Housing Expense Ratio
A home owner's monthly housing expense as a percentage of his or her monthly income.