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Arizona Home Insurance

When shopping for cheap Arizona home insurance, it is important to compare quotes from multiple providers. However it is also vital to pick high-quality insurance provider, as well as pick the right amount of coverage. This article will help you make right consumer decision to protect your Arizona house.

Average Arizona Home Insurance Premium & Other Stats

best-home-insurance-300x200The average premiums for homeowners insurance and renters in Arizona are $765 and $195 respectively according to Insurance Informaiton Institute. By comparison, Arizona is one the few states across the nation with relatively lower average premiums. You can choose from a wide range of discounts and options of coverage to lower the premiums remarkably. A credible Arizona home insurance agent will guide you in knowing the discounts that you qualify for. Furthermore, you ought to shop wisely for the best insurance companies before purchasing an insurance policy.

According to Census data, there are 2,999,157 housing units in the state of Arizona. There have been 39,472 building permites issued in AZ in 2017. Are you too planning to build or buy your house in the State? The owner-occupied housing unit rate in Arizona is 62.6%. Now, when you are planning to have your home in Arizona, a homeowners insurance is a must to keep your new haven covered. However, a lot of homeowners don’t know how to choose the right insurance policy and they end up making some disastrous errors. To save you from such mishaps, the post below offers a brief on the common errors to avoid while taking homeowners insurance in Arizona.

4 Mistakes to Avoid When Shopping for Home Insurance in AZ

1. Underinsuring the home

A lot of homeowners end up underinsuring their home. Most of the times, homeowners only stick to an amount which enables them to cover mortgage. But it constitutes just 80-90% of total house value. Then, again some homeowners insure the amount which is equivalent to present value of the home. However, this figure could be less compared the rebuilding cost of the house.

To avoid the mistake, you should first get an estimate of the rebuilding cost of your house. An insurance agent can calculate the cost but it’s better to go for an independent home-replacement price estimator. Your homeowners insurance should be close to the rebuilding cost of your home. If it is not, you have to enhance the coverage.

2. Not updating the insurance policy

Most of the homeowners insurance companies in Arizona tend to offer discounts for taking safety measures for your home. For example, you will receive handy discounts if you install burglar alarm or smoke detectors in your home. But to avail the discount, you have to inform the company about your security measures in the first place. A lot of homeowners do not update their homeowners insurance policy after installing security features. As a result, they can’t avail the discounts and keep on paying higher premiums.

Now, when you are moving in for the first time, a security alarm or fire detector could be a pricey investment. But you may invest in them over the course of time. And, if you do that, make sure to notify your insurance agent about the update.

3. Assuming homeowners insurance covers flood insurance

Arizona, especially Phoenix, is a flood-prone area. Earlier this month only the capital city was under water after record-breaking rainfall. Thus, if you are staying in Arizona, you must get flood insurance to protect your property here. But a lot of homeowners are under the misconception that homeowners insurance policy includes flood insurance. No, don’t stay under that misconception anymore. You will have to get the flood insurance separately.

4. Going for Actual Cash Value coverage

Do not make the mistake of signing up with Actual Cash Value coverage while signing up with a homeowners insurance policy in the State. Such a coverage will only reimburse on account of “book value”. So, if it’s an old item which has depreciated over time, you will be only paid for the depreciated value. The advice is to go for Replacement Cost coverage that will reimburse your item without considering the depreciation.

Types of House and Home policies in Arizona

It’s very vital to know what is protected in your Arizona home insurance policy. Here is a list of some of the house & home policies that you can find in Arizona as standard types of coverage:

  • Dwelling: also called home structure, it’s a standard type of coverage for protecting the physical structure of your property such as the walls and roofs of the house.
  • Other structures: is a coverage for protecting the other outbuildings on your property besides the house, such as the pool sheds and stand-alone garage among others.
  • Personal property: this is a standard type of coverage for protecting the personal belongings in your home in case they’re stolen or damaged regardless of whether they were at home or away when they were stolen/damaged.
  • Liability protection: it offers you protection in case someone gets injured while on your property and decides to sue you.
  • Guest medical protection: it protects you by catering for medical costs when a person gets injured while on your property.
  • Additional protection: standard Arizona homeowners insurance policies offer additional protection like reimbursing clients when they suffer covered losses and decide to stay in hotels.

You can enjoy great benefits from a House & Home policy when you discuss the available coverage options extensively with an insurance agent in Arizona before you purchase and start paying any premiums. You can protect several things that are very valuable and treasurable to you such as camera equipment, coverage like data recovery and identity theft restoration. You can count on your Arizona insurance agent to help you understand the various coverage options available for your particular home.