When looking for homeowners insurance in the state of Arizona there are a few things you should keep in mind:
How much to buy: Keeping in mind that the purpose of insurance is to transfer risk, you need to adequately protect your assets in the event of a catastrophic loss. You should insure your home for its proper value for maximum protection. Your house is a major investment, don’t scrimp on protecting it. Additionally, your mortgage company may have a set of insurance requirements you must adhere to.
Coverages: Know the difference between All Risk and Named Peril coverage. All risk is broader and will cover all risks subject to policy exclusions. On the other h and, Named Perils will cover only the perils named (i.e., fire, lightening, windstorm). All risk may cost a little more, but it’s worth it to protect your home.
Valuation: To protect our investment, replacement cost coverage pays the amount it will take to replace your home with the same kind and/or quality. Actual Cash value depreciates the purchase price of your home. ACV premiums may be cheaper, but replacement cost will return your home to it’s pre-loss value.
Rates: Rates are affect by factors such as:
· Type of construction: frame houses usually cost more than brick houses to insure.
· Age of house: Newer homes may qualify for discounts that older homes may not be privy to.
· Fire Protection: How far is your house from a fire hydrant or a fire department? The availability of water in the event of a fire is also taken into consideration when determining rate.
· Deductible: The higher the deductible you can withst and, the more of a premium discount you’ll enjoy
If you would like more information, or if you have a complaint you may contact the Arizona Department of Insurance
Consumers Affairs Division
2910 North 44th Street
Phoenix, Arizona 85018-7256