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It’s important that you know all of your options before you purchase your AZ home insurance. Your insurance agent needs to take the time to find out about you, your home, and your specific needs. If you have been in your home for many years, your insurance agent should be reviewing your policy with you a least every couple of years. The reason for this is that as your home gets older, you may lose certain home insurance coverages in Arizona or those coverages may change. A good example of this is coverage for your roof. Many insurance companies in AZ will not give you “replacement cost” coverage if the roof of your home is over a certain age. It’s imperative that your insurance agent ensures that your current coverage is keeping up with your individual needs, as well as the unique characteristics of your home.
What AZ Home Insurance Covers
An AZ home insurance policy provides multiple type of coverage. The largest amount of coverage on an AZ Home Insurance policy is coverage for the actual structure of your house. On your insurance policy, this is called “Dwelling” coverage or “Coverage A”. This represents the actual amount of coverage the physical structure of your home would have after a partial or completely covered loss. Unlike an Az auto insurance policy, in the event that your home is a total loss, your AZ home insurance policy will not give you a check for the amount of coverage you have. The insurance policy will pay to rebuild your home at the same location. Although some insurance policies allow you to rebuild at a different location for an additional premium, the home must be rebuilt within a specific amount of time. Because of this, it’s imperative that you ensure your home is covered for the amount it costs to completely rebuild, as well as the market value of your home. Keep in mind that what it would cost to rebuild versus the market value of a house can be drastically different. Interestingly enough, the AZ real estate market within the last ten years is a prime example of this. Luckily, most AZ insurance policies give you an extra percentage of coverage should market conditions change drastically. This is called “extended replacement cost” coverage.
At AZ Insurance Home you have the option of purchasing what is called “guaranteed replacement cost” coverage. This gives you the option that, assuming your home is insured correctly and you continue to notify your insurance agent of any changes, you don’t have a limit for your dwelling coverage. Not all insurance companies in AZ allow you to purchase this coverage, but the companies that do all require that you notify your insurance agent about any changes. Dave Ramsey always recommends that you purchase this coverage, as the insurance companies that offer this do not charge an additional premium for this coverage.
Another huge factor in your Arizona home insurance policy is Liability Protection coverage. All AZ insurance companies offer this and typically, this is the first coverage that is listed on your AZ home insurance policy. Should you be found to be negligent, AZ Liability coverage protects you and your immediate family members in case someone is injured while on your property, under your care, or in your control. For example, what if your friend is at your home and they slip and fall? In today’s litigious society, we recommend that you always carry a minimum of $500,000 of coverage, as Liability insurance on your AZ home insurance policy is the cheapest coverage to purchase.
Other AZ Home Insurance Coverage
There are many other coverage options that are included within each of our AZ home insurance plans. Items such as; Medical Coverage, ID Theft Coverage, Hail Damage, Smoke, Theft, Personal Property, Jewelry, Guns, Art Work and many others. In fact, there is so much covered on our particular AZ home insurance policies that it can be overwhelming to read through. We know that many people have never had their coverage explained to them by their insurance agent and, for that reason, we make it a point to explain coverage and coverage options to each of our clients.
What’s Not Covered on Your AZ Home Insurance Policy
Remember to look through your AZ home insurance policy carefully. While there are a lot of items that are or could be covered, there are a few items that you cannot obtain coverage for within your AZ home policy. For example, Flood coverage is not an item that you can get integrated into your AZ home insurance. For example, AZ flood insurance must be purchased as a separate policy that gives you coverage for damage done to your home or personal property by a flood. Work carefully with your agent to ensure that all of your coverage needs are met and that you are totally comfortable with your property protection.
