What is homeowners insurance?
Homeowners insurance is a form of property and casualty insurance. So, it primarily covers your home and the stuff inside of it in the event of theft or some disasters. Homeowners insurance typically covers: fire, windstorm, hail, lightning, smoke, explosion, theft, vandalism, riot and vehicle collision. It commonly excludes earthquakes, flood, power failure, war, nuclear explosion, neglect or intentional damage. Our team can find the right homeowners policy for you in Scottsdale Arizona.
Does Arizona Require Homeowners Insurance
Arizona doesn’t require homeowners insurance by law, but if you finance your home, your lender may require you to have a homeowners insurance policy in place. Your policy’s coverages are designed to safeguard your property and assets. A typical policy will include the following:
- Dwelling coverage protects your home’s structure (roof, walls, etc.) as well as attached structures, like a porch.
- Other structures coverage protects detached structures, such as a fence or shed.
- Personal property coverage protects your personal belongings, including furniture, clothing, and electronics. Certain items, like jewelry, art, and collectibles, are often only covered up to a specific limit so you may want to purchase an endorsement to schedule these items on your policy at the coverage amount needed, also known as “adding a rider.”
- Personal liability coverage protects you financially if you’re legally responsible for another person’s injuries or damage to their property.
- Medical payments to others pays for medical expenses due to a covered occurrence.
- Loss of use coverage helps cover costs associated with an increase in living expenses, up to your policy’s limit, if you’re unable to stay in your home while it’s being repaired or rebuilt due to a covered loss.
- Keep in mind coverage under your policy is subject to exclusions and conditions within your policy. It’s important to read your policy to understand the coverage provided.
Why do I need homeowners insurance in Arizona?
Because your home is a valuable investment, you should always protect it. Disasters happen and you don’t know what the cost of the damage will be. In 2020 we have seen many wildfires that have destroyed many homes. so, having homeowners insurance will keep you protected. Furthermore, it will give you peace of mind and that is very important.
Will homeowners insurance replace my house if it’s destroyed?
If your house is destroyed by a covered peril, a standard homeowners policy will go a long way toward repairing or rebuilding your home. A homeowners insurance payout is dictated by the fine print of your policy. For starters, you’ll have coverage limits. If your house itself (or “dwelling”) is insured for up to, say, $350,000, you won’t get more than that to replace it. And you could get less, depending on the type of homeowners insurance you have.
What types of homeowners insurance policies are there?
A replacement cost homeowners insurance policy pays claims based on the cost of rebuilding or repairing your home at the time it is damaged or destroyed. An actual cash value homeowners insurance policy pays claims after accounting for any depreciation in your home’s value. Replacement cost homeowners insurance will cover more damage to your property and possessions. Actual cash value homeowners insurance is cheaper, but it usually won’t pay out enough to fully repair or rebuild a damaged home. Therefore, Actual cash value is commonly chosen.