Protecting Your Dwelling in the Grand Canyon State

According to the Arizona Department of Insurance, consumers should buy a house insurance policy in order to shelter 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 lot and home, the amount of assets you have to cover 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 shield yourself from lawsuits that may result from your possible negligence.

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

Types of Coverage to Consider

The most common types of 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 included under these policies. If you wish to get flood protection but cannot acquire it through your insurer, you can get a plan 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 dwelling is damaged and you can no longer reside there while repairs are being made to your dwelling.
• Personal Liability: shelters you and your family members against a lawsuit or claim that arises from bodily injury or damage to possessions 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: looks after 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 house or from renting out your house.