Home Insurance in Arizona – How Much Coverage Should I Have?
AZ Home insurance is considered by many to be just one more evil necessity of home ownership. Every home owner must buy insurance if he still has a mortgage. Unlike the popular title insurance, this type of coverage handles the real estate and personal property inside.
Policies also have options called “riders” where additional personal property such as jewelry, furs, high end electronics (home theater equipment), etc.
In some areas you will be required to buy flood insurance also. This covers water damage caused by weather, not for instance a broken water heater. Your lender will tell you whether you live in a flood plain, and if so, you will need to get a policy. This is in addition to your home insurance. Even if you don’t live within the flood zone, you still should have flood insurance. You never know how far flood waters will travel inland.
Each state has some type of agency or board of overseers that regulates Arizona’s insurance companies. These boards not only monitor insurance rates, they also act as an investigation force if you have a complaint about your insurance company. If you have a problem that you can’t resolve using the regular channels, contact your state’s agency and ask how to file a formal complaint. The board will do a preliminary investigation and keep you posted as it progresses.
Insurance is expensive. To reduce the overall costs you may consider opting for a higher default deductible. You can also reduce your estimated value for furniture. This is an area where many consumers tend to over purchase and over pay.
People tend to insure all their furniture, even inexpensive pieces, when in fact there is little chance that all your furniture will be totally ruined in a mishap. Insure pieces that are expensive, custom made, or valuable antiques. Forget the kitchen set.
Also make sure you are insuring your home for replacement value, not what you paid for your Arizona home. If you have used the same company for years you may not pay attention to anything except the renewal notices, and not review the policy.
Should you ever put in a claim and you feel that you are being compensated unfairly, hire a public adjuster. They have been trained to deal with stubborn insurance companies and they know how to renegotiate your claim and settlement offering.