Home Insurance in Phoenix, AZ

What factors influence my home insurance rate?

When setting homeowners insurance rates in Phoenix, AZ, insurance providers typically consider the following factors:

• Location: Where your home is located is one of the biggest influences on your insurance cost. If you live in an area that's prone to natural disasters like floods or hurricanes, or one with a higher crime rate, you could expect to pay more for coverage in Phoenix.
• Home value: Your home's value matters because it determines how much it would cost to rebuild if it's completely damaged. Insurance providers often check the home's purchase price and appraisal to set coverage limits.
• Home features: Certain features make your house riskier to insure. For example, if you have a swimming pool or trampoline, your premium will likely be higher due to the increased risk of injury. Outdated electrical, plumbing, or heating systems could also raise your rate because they're more likely to cause damage.
• Claims history: A clean claims history could save you money. Insurers reward customers who haven't filed many claims, often with discounts. On the flip side, having multiple past claims could lead to higher rates. Many home insurance companies in Phoenix use a CLUE report to check your home and auto claims from the last seven years.
• Coverage amount: The coverage amount you choose could also affect your premium. If you want a higher coverage limit to fully protect your home and belongings, you'll pay more. However, this additional cost gives you peace of mind that you're better protected in case of a total loss.

Common insurance discounts in Phoenix

Looking to save money on your home insurance in Phoenix, AZ? You might qualify for several discounts that could significantly lower your premium.

Here are some of the most common home insurance discounts available in Phoenix:

• New home discount: If your home was built recently, you might qualify for a new home discount. Newer homes are usually built to modern safety codes, which makes them less likely to have costly damage. Most insurers consider a home "new" if it's less than 10 years old.
• Multi-policy discount: If your insurance company provides more than just homeowners insurance, like auto or renters insurance, you could save by bundling. Buying multiple policies from the same company usually earns you a multi-policy discount.
• Claim-free discount: If you've gone several years without filing a home insurance claim, your insurance company might reward you with a lower premium.
• Military discount: Many insurance companies offer discounts to those who serve or have served in the military. If you're an active-duty service member, veteran, or even a spouse or child of someone in the military, ask your agent about this discount. Some insurers may even offer specialized homeowners policies designed specifically for veterans.
• Safety and security discount: Make your home safer, as it could help lower your insurance rate. Devices such as smoke detectors, burglar alarms, fire extinguishers, water leak sensors, and deadbolt locks might qualify you for a discount.

What does home insurance in Phoenix typically cover?

Home insurance in Phoenix helps cover your home and personal belongings in the event of a covered loss, such as fires, tornadoes, hail, or burst pipes. If any of these scenarios causes damage, your policy could pay to repair it.

That said, a standard homeowners insurance policy in Phoenix generally includes the following:

• Dwelling coverage: Dwelling coverage is the core of your home insurance policy. It pays to repair, rebuild, or replace your home if it's damaged by a covered loss. This might include things like fire, vandalism, theft, or severe weather (such as wind, hail, or lightning). It could also cover damage caused by outside forces, such as a falling tree branch.
• Personal property coverage: This policy covers personal belongings inside your home. It includes furniture, clothing, appliances, and your heating or cooling systems. If you own expensive items such as jewelry, fine art, or collectibles, you might need to purchase extra coverage to fully protect them.
• Other structures: Detached structures on your property – like a garage, shed, barn, outdoor fireplace, fence, swing set, or wall – are also covered. Recreational items, such as trampolines or swimming pools, might also be included. However, because they pose a higher risk, you might need additional liability coverage.
• Loss of use: If your home becomes unlivable due to a covered event, loss of use coverage could help pay for temporary living expenses. This could include hotel stays, restaurant meals, or parking fees. Keep in mind that policies have set limits and timeframes, so check your policy details to know what's covered.
• Personal liability coverage: Liability coverage helps protect you financially if someone is injured on your property and decides to sue. It could help pay for legal costs, settlements, and medical expenses.
• Medical payments: Medical payments coverage applies if someone, other than a household member, is accidentally hurt on your property. It covers reasonable medical expenses, usually within a year of the accident. This coverage comes standard, but you could increase the limits if needed.

Additional Phoenix insurance coverage options

Want more protection than a standard home insurance policy provides? Here are a few optional coverages you could consider in the city of Phoenix:

• Fire insurance: Wildfires are a real risk in Phoenix's desert climate. While standard policies include fire coverage, additional protection might be necessary to fully protect from this threat.
• Flood insurance: Monsoon season could bring heavy rain and flash floods in Phoenix. Standard home insurance in Phoenix typically does not cover flooding, so it's essential to purchase a separate flood insurance policy.
• Earthquake insurance: Although rare, earthquakes could still happen. Earthquake coverage could help with repairs and rebuilding if your home is damaged by seismic activity.
• Specialty items coverage: Valuable items, such as jewelry, art, and collectibles, might require extra coverage, like scheduled personal property coverage, beyond your regular policy limits.
• Extended replacement cost coverage: This add-on could help cover the cost of rebuilding your home, even if it exceeds your policy's original limits due to rising labor or material costs.

What Phoenix residents need to know

In the state of Arizona, Phoenix homeowners and condo owners experience various risks due to the desert environment. Wildfires, monsoons, and extreme heat could all affect your home and increase insurance needs.

Homes in flood-prone areas or neighborhoods with a history of insurance claims might see higher premiums. It's also important to regularly update your policy as your home's value, condition, and contents change.

How to lower your Phoenix home insurance premium

Looking to save on your home insurance rates? Here are some practical tips to help you cut your Phoenix home insurance cost:

• Adjust your deductible: One simple way to possibly lower your premium is to raise your deductible. This means you would pay more out of pocket if you file a claim, but your monthly premium could be reduced. Just make sure you could afford the higher deductible if something happens.
• Boost your home security: Insurance companies reward homes with strong security features. Make sure to go beyond the basics like deadbolts and smoke detectors. You could earn bigger discounts if you add a professionally monitored security system, fire sprinklers, and reinforced doors and windows.
• Maintain a good credit score: In most states, including Arizona, insurers use your credit history to help set your premium. Pay bills on time, reduce debt, and check your credit report regularly to keep your score in good shape.
• Ask about extra discounts: Every insurance company is different, so don't be shy – ask what discounts are available. You might save more if you pay your annual premium in full, install energy-efficient appliances, or bundle.

Still have questions?

Want to learn more about home insurance in Phoenix, AZ? Here are some frequently asked questions to help you feel confident about your next steps.

How much is the property tax in Phoenix?

The average property tax rate in Phoenix is 1.33% of a home's assessed value, which is considerably higher than the national median of 1.02%.

What salary do you need to live comfortably in Phoenix?

To live comfortably in Phoenix, a person typically needs to earn at least around $67,000 per year. This accounts for housing, transportation, healthcare, and entertainment while leaving room for savings. For families, the number increases based on household size and lifestyle.

What are the risks of living in Phoenix?

Living in Phoenix poses a range of risks, including extreme weather conditions such as heat, drought, and potential flooding, as well as higher crime rates and the need for water conservation.