Insurance Quotes  >  Home Owners Insurance  > Arizona

Homeowner’s insurance policies in Arizona are very basic. They cover Property damage, Additional Living Expenses, Personal Liability, and Medical Payments. There are also a few optional coverages, which though not part of a basic homeowners insurance policy, can be obtained via an extra charge. These are also discussed below.

If your dwelling does not meet the specified criteria for obtaining a homeowners insurance policy, you may be refused one by an insurance company. Insurance companies cannot be prevented from denying coverage in such cases.

Coverage can be denied based on a house's age or location as seen in most states. Also the premium you will pay is determined by the age of the dwelling and its location -as well as things like proximity to and the number of fire hydrants and fire departments in the area. These can often lead to discounts being made available to you.

If you are not too keen on face-to-face consultations with insurance companies and agents, you can also try the online insurance quote medium. With availability of online insurance quote sites presenting a multitude of insurance agencies with different requirements (local and national), you stand a good chance of finding the best deal for your needs.

The Rate System in Arizona

What is most interesting about the homeowners insurance in Arizona is the ‘open competition’ law, which is applicable. This makes it clear that insurers are not allowed to charge exorbitant, insufficient or discriminatory rates, which may affect competition or lead to establishment of a monopoly. Which is why consumers are offered a good deal of choice when it comes to shopping for insurance.

Legally, a rate cannot be too high if "a reasonable degree of price competition” (RDPC) exists at the levels of the consumers. A competitive market is presumed to exist unless the Director, after a public hearing, determines that a RDPC does not exist in the market.

Monitoring Insurance

The Department of Insurance gathers data from the rate filings made by the insurers' and their annual statements available with the Department. Insurers' responses to an annual Department survey, current trade press articles, and A.M. Best data enables them to monitor the market. This measure is used to determine whether competition exists and if it does, then, is it assisting consumers with their questions and concerns about the availability of insurance?

Optional Coverages

The following coverages though not included in the standard homeowners insurance policy can be bought as a supplement:

1. Earthquake coverage enables you to repair or replace your home following an earthquake. Some companies would perhaps insist that your property meet certain specified criteria: having a secured hot water heater, or have wooden doorframes in order to purchase this coverage. The amount of this coverage will match your dwelling coverage, but you will have a separate deductible for this coverage, which is usually 10% of coverage amount. Your policy will outline what an earthquake coverage is and will include any limitations which may apply to this coverage. Note that an earthquake is commonly defined as one that heralds aftershocks for up to 72 hours after the initial event. Since the risk from damage caused by aftershocks still exists after an earthquake, most companies will not sell earthquake coverage to people residing in earthquake prone areas, and may state that they have a moratorium on the coverage, until the end of this 72-hour period.
2. Flood insurance is available as a separate policy and provides coverage for direct physical losses caused by flood, flood-related erosion, abnormal tidal surges, and mudslides. The National Flood Insurance Program provides these policies through an arrangement with private companies. If your property is located in a flood plain, your lender may insist on you obtaining this coverage. Policy forms are many and the policy you may be offered and the price you may have to pay for it will be determined by where you live. Details required in such cases will be the flood zone that applies to your property, an elevation certificate, a document from an engineer that shows the relative elevation of different areas of your home among other documents.
3. Daycare coverage provides liability coverage for day care facilities, which you may provide in your home for a limited number of children. To obtain this coverage you may have to provide a copy of your daycare license and show that your property is fenced or meets other safety requirements.
4. Home Business coverage may be offered as a part of your homeowner’s policy. Each insurance company will define the type of home business it is willing to cover on a homeowner’s policy. Some companies will offer additional liability coverage and coverage for business property for an office or shop on your property. Other companies may only provide additional personal property coverage for items used in your business or for a limited amount of inventory for your business.

For further details on homeowner’s insurance policies and optional coverages in Arizona, please contact the Department of Insurance.