Arizona Homeowners Insurance
Arizona homeowners insurance policies are divided into four parts. The four parts are:
- Dwelling and personal property covers the structure and certain contents of the home.
- Personal liability covers such incidents as the insured’s tree falling on the neighbor’s property.
- Medical payments cover parties injured on the property. An example would be a guest falling from the insured’s dry rotted porch.
- Additional living expenses cover miscellaneous mishaps to your home or property.
Your Arizona homeowners insurance policy should cover at least 80% of the home’s replacement value. The Arizona Department of Insurance allows insurance carriers to automatically add an inflation guard increase to the amount of insurance on the policy holder’s home to protect against the risk being under insured as the home’s value appreciates. Your Arizona homeowners insurance carrier should be contacted if you make any upgrades or renovations to your property to make sure your policy reflects the increase in value.
Mobile homes are insured similarly to a free standing home unless the occupants are renters. Condos and apartments are insured with personal property insurance for its occupants by the occupants themselves. The condo association or the apartment complex owner is responsible for dwelling insurance.
Flood Insurance On Your Arizona Home
Arizonians live in more dessert like conditions, so flood insurance would seem unnecessary. Most people think that flood insurance is included in the their policy and some are unpleasantly surprised to find that they are not covered for issues like mold, backed up septic/sewer systems, fungi, dry rot, and certain acts of nature involving water. More flood insurance information can be obtained from the NFIP, National Flood Insurance Program in Rockville, MD.
Personal Property & Your AZ Homeowners Insurance Policy
There are several limitations on your Arizona personal property coverage. Computers, art, and antiques should be given special coverage. A basic policy will not cover these items as one might expect. Guns are another item that has limited coverage.
Many people operate businesses from their home. One may obtain home office coverage as additional coverage for as little as $20. This additional coverage protects business accounts receivable on the premises for up to $10,000 and monies lost up to $5,000. Business property is covered up to $2,000.
Arizona Home Insurance Rates And Factors
Rates for your Arizona homeowners insurance policy are based on several factors. Some of those factors include:
- Age of the home
- Home construction
- Credit history
- Zip code
- Security features
- Energy features
- Fire protection rating
Whether your home is built with siding versus masonry makes a difference in your premiums. Your zip code determines the likelihood of crime and vandalism to the home. The fire protection rating is determined by the number of fire extinguishers, sprinkler systems, smoke detectors and distance from the nearest fire station.
Fire prevention features and energy features could also entitle the policy holder to discounts as well. It is important to explore discount features with your insurance agent to determine your entitlement to a discounted rate. There are many ways to save money on your premiums.
One way to lower your rate is to request a higher deductible. Establishing you health insurance, auto insurance and life insurance with the same carrier will entitle you to a discount. The length of time with a carrier warrants a discount. Even non-smokers are entitled to a discount. It decreases the likelihood of a fire.
How Arizona Homeowners Insurance is Paid
Most homeowners insurance premiums are paid from an escrow account established at closing. Most states require 12 plus 2 months of premiums at the closing table to cover the first year plus a two month reserve. Subsequent years are collected with your mortgage payments. That way, especially while the home is being mortgaged, your home will always be insured. After your mortgage is paid off, the policy holder is responsible for making sure the premiums are paid up to date.
Some homeowners may have trouble obtaining insurance on their homes because of the risk factors they may face.
- One big factor is location. You may be penalized simply based on where you live and the environmental risk factors tied to your location.
- Age of home - Some older homes in urban areas have trouble maintaining insurance if the home has not been maintained.
- Lack of maintenance coupled with the risk of crime and vandalism could affect your ability to maintain coverage especially after the mortgage has been satisfied.
If you have been denied homeowners insurance you can contact the Arizona Department of Insurance. Each instance should be handled individually to make sure no Arizona State laws have been violated. If it’s a matter of finding the right carrier, resources may be made available to the inquirer. Such is also the case if your home carries several risk factors.
Compare Arizona Homeowners Insurance Quotes
So what's your next step? The free quote tool at the top of the page will help you obtain a number of quotes from qualified insurers ready to compete for your business. Why not start getting those Arizona homeowners insurance quotes immediately?