Arizona Homeowners Insurance Guide

According to the Arizona Department of Insurance, homeowners should get insurance in order to protect both your house and your personal property as well as to provide protection against liability for actions that happen on your property that causes injury to others.

The amount of protection you should get depends on the size of your property and home, the amount of assets you have to protect and the amount of out of pocket expenses you believe you can quickly and easily manage if something happens. You should make sure you have enough coverage to protect yourself from lawsuits that may result from your possible negligence.

Your lender may require you to have homeowners insurance protection at certain levels which will be clearly stated before your home closes. You are not required by any state law to use the insurance company that your lender recommends.

Types of Insurance Coverage

The most common types of homeowners insurance policies available in Arizona include property damage, contents insurance, additional living expense/loss of use, personal liability and medical payments. A brief description of each is as follows:

• Property Damage: pays for damage to your home from such perils as fire, lightning, windstorm or hail. Note that flood or earthquake are not covered under these policies. If you wish to get flood protection but cannot acquire it through your insurance company, you can get covered through the federal government's National Flood Program ("NFP").
• Contents Insurance: covers your personal effects that may be damaged or stolen such as jewelry, clothing, and electronic equipment. The items' value will be depreciated before your claim is paid so certain items should be scheduled on the policy specifically to make sure you receive the full amount due.
• Additional Living Expense: provides for the increase in expenses you will incur if your home is damaged and you can no longer reside there while repairs are being made to your home.
• Personal Liability: protects you and your family members against a lawsuit or claim that arises from bodily injury or property damage that you are held responsible for by a court. This will include attorney's fees, but once your policy maximum has been reached, you will be responsible for your own fees.
• Medical Payments: covers the reasonable expenses for other individuals who may be accidentally injured on your property or in the area immediately surrounding it such as an alley or sidewalk. This will not provide coverage for your own injuries or injuries to your family members living with you. Coverage will also not be provided for accidents that may occur as a result of a business that you operate out of your home or from renting out your property.