Are you protecting what could be one of your most expensive purchases—your home? If you don’t have comprehensive home insurance, you might be leaving one of your biggest assets uncovered. Fortunately, Obrella makes it easy to find and purchase a Arizona home insurance policy. Insurance experts make it easy to weigh your options so you can choose the policy that’s best for you.
Homeowners in Arizona
- Median Home Value: 173,700
- Household Income: 49,254
- % of Income on Home Ownership: 31.40%
The median household income in Arizona is $48,510, which is $3,740 less than what the average household in the nation is earning. Owner-occupied homes throughout the nation are valued at an about$176,700, which is higher than the average of $165,100 in Arizona.
How are home insurance premiums determined in Arizona?
Several factors are considered when insurance providers decide on the cost of homeowners insurance policies. Your provider may look at unique characteristics of your home and neighborhood when determining your premium, such as the cost of building a home in your area, the area’s crime rates and other statistics, the size of your home, and the year it was built. Your credit score may also be taken into account when the premium is set for your home insurance policy.
Insurance premiums will also take into account how likely your home is to be damaged by floods, tornadoes, earthquakes, or other environmental factors. The more common these environmental anomalies are in your area, the more liability is put on the insurance company to insure your home. To compensate for this extra risk, your provider is likely to raise your premium if you live in a flood plain, for example, or an area prone to earthquakes, tornadoes, or hurricanes.
Additional property characteristics, like swimming pools (referred to in the insurance industry as “attractive nuisances”) and guest homes, will also affect insurance premiums. Fortunately, installing home and property protection devices like motion-sensor lights, security systems, and surveillance cameras can lower your homeowners insurance rates in many cases.
Many insurance providers offer multi-policy discounts. For instance, customers often bundle auto insurance policies and homeowners policies with the same company. This can lower your overall insurance costs, and it’s convenient to know that all of your policies are in the same place. You might also be able to get a homeowners insurance discount from your provider if you stay with the same company for a number of years, especially if you rarely or never file a claim.
Rates will vary based on the factors above, but average home insurance rates in Arizona run approximately $700-$1,000 per year.
What kind of homeowners insurance is available in Arizona?
The majority of Arizona home insurance companies have multiple coverage options to pick between; here are a couple of those options:
- HO-1: Limited Coverage
- No longer available in most states, this basic policy offers coverage against the first 10 classified disasters: fire or lighting, windstorms or hail, explosions, riots, damage caused by aircraft, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption.
- HO-2: Basic Policy
- HO-2 is a basic policy that provides protection against all 16 classified disasters.
- HO-3: Standard, most popular
- This policy is the most popular due to its comprehensive coverage and relatively few exceptions.
- HO-8: Older Home
- This policy guards against declining home values by reimbursing homeowners on an actual cash value basis. However, some more aged homes may not qualify for complete replacement cost policies.
What is covered by standard Arizona homeowners insurance?
Simply stated, you are only covered if the damage to your home is caused by a specific situation outlined in your policy. So, if you neglect to purchase flood insurance, the insurance company is not obligated to pay for damages to your house that are caused by flooding. Below are common home insurance coverage definitions to help you navigate the specifics of your policy:
- Coverage A – Dwelling
- Coverage A deals with damage to the home itself, any structures attached to the home, and any of the home’s plumbing, heating, wiring, or permanent air conditioning systems.
- Coverage B – Other Structures
- Tool sheds, free-standing garages, fences, guest homes, and other non-attached structures are covered under Other Structures.
- Coverage C – Personal Property
- Personal Property coverage pays back homeowners in the event that a personal possession—like clothes, furniture, or electronic equipment—is lost or damaged. This coverage is valid whether or not the loss or damage occurs on the property—meaning items kept in a storage facility, for example, are still protected.
- Coverage D – Loss of Use
- If home repairs prevent you from inhabiting your house, Loss of Use coverage will cover your living expenses for the duration of the repair process.
- Coverage E – Personal Liability
- Personal Liability coverage provides financial protection in the event of a lawsuit in which the homeowner is found legally liable for another’s injuries or damages.
- Coverage F – Medical Payments to Others
- Covers medical bills for individuals hurt on a homeowner’s property or by the homeowner’s pet.
What resources are available for Arizona insurance policyholders?
Arizona Department of Insurance: If you have any questions about your current policy, reach out to the Arizona Department of Insurance.
Trying to figure out your home insurance options on your own can be frustrating. Fortunately, there is another option! We can put you in touch with an experienced insurance agent who can answer your questions, discuss your needs, and review your options with you to help you find the best coverage for your needs. And you don’t have to wait for your coverage to kick in as
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!