Living in Phoenix means sunshine, vibrant neighborhoods, and a lifestyle that’s hard to top. But with the desert comes extreme heat and the occasional monsoon. That’s why you need the right insurance for your home. Every homeowner needs home insurance to protect their assets come what may.
Our custom home insurance policies give you peace of mind, protecting your home and belongings from the unexpected. Wherever you are in Phoenix, we’ve got you covered with the best homeowners insurance solutions in Arizona.
Trailstone Insurance Group is an independent insurance agency that works with the best homeowners insurance companies to get you the best deal.
Get a QuoteWhy You Need Home Insurance in Phoenix, AZ ?
Living in Phoenix has a set of risks that may put your home and belongings in danger. The city is known for its extreme weather conditions. For example, extreme heat in summer might cause roof damage and fire hazards. Monsoons, on the other hand, along with the accompanying heavy rains and wind, might lead to flooding and water damage. All these risks need good coverage to protect your home and your financial status from expensive repair and replacement costs.
Moreover, homeowners insurance also protects your personal belongings from theft, vandalism, and loss. All Arizona homeowners need comprehensive home insurance to protect their life investment and have peace of mind.
Why Trailstone Insurance Is Your Top Choice
- Independent Agency Advantage: Trailstone works with over 40 top-rated insurance carriers, so you get a policy tailored to your specific needs at the best price. Being independent allows us to shop around on your behalf, so you get the best options without being tied to one company.
- Ramsey Trusted Pro: Being a Ramsey Trusted Pro means we’ve met high standards of excellence, integrity and customer service. We’re a company you can trust.
- Personalized Service: We treat our clients like family. We educate our clients, so they understand all their options and feel confident in their choices. We take the time to listen to your needs and concerns and give you advice that fits your situation.
- Local Expertise: As a local company we know the specific risks and needs of homeowners in your area. We can give you insights and coverage options that are specific to your home’s location.
Is Homeowners Insurance Required by Law?
No, homeowners insurance isn’t mandatory by law in Arizona. However, it’s a worthwhile investment to protect your home and belongings. Moreover, most times, your mortgage company, bank, or lender will require you to carry home insurance to protect their investment.
What are the Forms of Home Insurance Coverage?
Home insurance policies come in three forms, each with different levels of coverage based on the homeowner’s needs. Here are the three main types of home insurance coverage:
Basic Coverage
- Coverage: The Basic Form is the most limited type of home insurance. It only covers a specific list of “named perils,” which usually includes fire, lightning, windstorms, hail, and vandalism. If it’s not listed in the policy, it’s not covered.
- Best For: This type of policy is less common and cheapest but best for homeowners who want minimal coverage and are willing to accept the risk of uncovered events.
Broad Coverage
- Coverage: This is the most popular and recommended type of home insurance policy. It offers “all-risks” coverage for the dwelling meaning it covers any peril unless excluded in the policy (like floods or earthquakes which usually require separate coverage). It also offers broad coverage for personal property though usually on a named perils basis.
- Personal Property: Comprehensive Form policies cover personal belongings on the same “all-risks” basis unless the policy specifies exclusions.
- Best For: Homeowners who want a balance between cost and coverage, especially those who want broader coverage for their home’s structure but are okay with more limited coverage for personal property.
Comprehensive Coverage
- Coverage: This is the most popular and recommended type of home insurance policy. It offers “all-risks” coverage for the dwelling meaning it covers any peril unless excluded in the policy (like floods or earthquakes which usually require separate coverage). It also offers broad coverage for personal property though usually on a named perils basis.
- Personal Property: Comprehensive Form policies cover personal belongings on the same “all-risks” basis unless the policy specifies exclusions.
- Best For: Homeowners who want extensive coverage for both their home and personal property, especially those with high-value homes or valuable possessions.
What Does a Homeowners Insurance Policy in Phoenix, AZ, Cover?
Here’s what standard home insurance policies include:
- Dwelling Coverage: This part of your home insurance policy covers the physical structure of your home, including the walls, roof and attached structures against various perils. In Phoenix, it’s important to have this coverage due to the risk of wildfires and windstorms. With the cost of repairs and rebuilding so high in today’s market, having enough dwelling coverage ensures your home can be restored to its original condition after a covered event.
- Personal Property Coverage: Beyond the structure, your home insurance also covers personal belongings like furniture, appliances, electronics, and clothing. This is crucial in Phoenix where the risk of theft is higher than in other cities. It also covers damage from fires or other covered events. Some policies may even extend this coverage to items stored off-site like a storage unit.
- Liability Protection: Liability coverage is key if someone is injured on your property. This could be a guest slipping by your pool or a delivery person injured by a pet. In Phoenix, where many homes have pools or other attractive nuisances, liability protection is important. It covers legal fees and any potential settlements if you are found legally responsible for the injury.
- Additional Living Expenses (ALE): If your home is rendered uninhabitable due to a covered loss, ALE coverage helps pay for temporary living arrangements like hotel stays or rental homes. This is especially important in Phoenix where extreme weather events could require significant home repairs and you’d have to live elsewhere for an extended period.
Home Insurance Endorsements
Endorsements are optional coverage you can add to your home insurance policy for extra protection at a higher price. These are some important endorsements to add to your home insurance policy in Phoenix.
- Fire Insurance: Phoenix’s dry climate means wildfires are a big risk. While standard home insurance covers fire damage, many Phoenix homeowners opt for extra fire insurance to be fully protected from this threat.
- Flood Insurance: Not included in standard policies, flood coverage is highly recommended in Phoenix since the monsoon season runs from June to September. This brings heavy rain and flash flooding which can cause significant damage to homes.
- Earthquake Insurance: While earthquakes are less common in Phoenix, some homeowners add earthquake insurance as an extra precaution. This coverage protects against the financial impact of seismic activity which can cause structural damage to homes.
- Specialty Items: If you have high-value items like jewelry, art or collectibles, it’s advisable to add scheduled personal property coverage. This provides extra coverage beyond the limits of standard personal property coverage, so your most valuable items are fully insured.
- Extended Replacement Cost Coverage: An add-on to standard homeowners insurance policies that provides additional protection when the cost to rebuild or repair your home exceeds the original coverage limits of your policy.
Homeowners Insurance Costs in Phoenix, AZ
The average cost of homeowners insurance in Phoenix, Arizona is $1,781 per year, or $148 a month. This applies to a policy with dwelling coverage with a limit of $300,000. The rate in Phoenix is around 7% higher than the Arizona average. However, it’s on par with the national average. Homeowners insurance rates differ from one individual based on many factors, like location, home value, security systems, and more.
What Is Not Covered by Homeowners Insurance in Phoenix, Arizona?
- Wear and Tear or Neglect: Insurance doesn’t cover damage from normal wear and tear, poor maintenance, or neglect. For example, if a roof deteriorates over time and leaks, the damage from the leak won’t be covered.
- Mold: Mold is only covered from a covered peril like a burst pipe. Mold from long-term moisture, humidity, or leaks that haven’t been addressed is generally not covered.
- Pest Infestations: Damage from pests like termites, rodents, or insects isn’t covered. Homeowners are expected to take preventative measures to protect their property from this damage.
- Sewer Backup: Damage from a sewer backup is usually not covered unless you’ve added sewer backup coverage to your policy.
- Certain Dog Breeds: Liability coverage may exclude certain dog breeds considered high risk by insurers like pit bulls or Rottweilers. Injuries from these breeds might not be covered unless you add additional coverage.
- Acts of War and Nuclear Hazards: Damage from war, nuclear accidents, or government action (like property seizure) is excluded from coverage.
- High-Value Items: Standard policies have limits on coverage for high-value items like jewelry, art, or collectibles. You may need to add coverage for these items to make sure they’re fully covered.
Factors That Insurance Companies Use to Calculate Your Homeowners Insurance Premiums
These are the factors that your home insurance company takes into consideration when calculating your homeowners insurance rate.
- Location: If you live in areas with high crime rates and more natural disasters, you will pay more. The more risk of loss, the higher the insurance premium.
- Home Value: If the house costs a lot to repair or rebuild, you will pay more to insure it. Your insurance provider will ask questions about its age and electricity/plumbing/HVAC systems.
- Home Age: Older homes are at more risk of a covered loss because of their outdated systems. So, if you live in an old home, you will pay more unless you make upgrades.
- Insurance History: Your insurance history also affects your insurance premiums. If you’ve made previous claims, according to statistics, you will make more. That’s why insurance companies increase the premium for clients with previous insurance claims.
- Coverage options: The more homeowners insurance coverage options you have, the higher the premium.
How to Get Cheap Homeowners Insurance in Phoenix
Arizona homeowners can still get the best homeowners insurance in Phoenix at an affordable price with these tips.
- Compare car insurance quotes before settling on one deal. Each company has a different calculation system and you may find that one company offers more perks at a cheaper price.
- Raising your deductible amount will decrease your insurance premium. However, it’s crucial to make sure you’re ready at any point to pay the deductible out-of-pocket.
- If you buy your home and auto insurance policies from the same company, you’re likely to get a discounted rate.
- Upgrade your plumbing, electrical, heating, and HVAC systems. These upgrades will lower the risk of damage happening to your home and get you lower home insurance rates.
- Upgrading the home security system will also reduce risks of incidents, like theft or vandalism, making your home cheaper to insure.
- Remember to ask your insurer for any discounts they offer. You might find yourself eligible for a discount based on your alma mater, age, or an organization you’re a member of.
Homeowners Insurance in Phoenix FAQs
Pinpointing the cheapest homeowners insurance companies is tricky. Each company has its own calculation system, and while one company may offer you a cheaper rate, the same company might offer someone else a higher rate. That’s why we advise you to shop around and check as many deals as you can before picking the best homeowners insurance deal for you. Remember that there are other considerations than price. You want to have adequate coverage for your home and protect it from the heavy costs of repairs and rebuilds.
Arizona has more risks than other states in the US, like extreme heat, monsoons, and criminal activity. That’s why its homeowners insurance cost has been rising rapidly in the past few years. At Trailstone, we can help you find a good deal with the coverage you need. Contact our team now.
No, homeowners insurance isn’t mandatory by law in Phoenix. However, many mortgage lenders add it as a requirement for home buyers to carry.