Arizona Homeowners Insurance

Last Updated on September 29, 2020 by Andrew Lee

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Becoming a home owner comes with numerous expenditures. These aren’t just expenses related with paying off your mortgage; they also have something to do with protecting your property through a homeowners insurance policy.

When you invest in an extensive Arizona homeowners insurance policy, you can rest easy knowing that, in the event your property suffers from a loss (whether structural or content-wise), your insurer will help cover the costs.

Average premiums for homeowners and renters insurance in Arizona

In 2016, the National Association of Insurance Commissioners (NAIC) released a report regarding the national average of homeowners insurance premiums in the country. As the organization reports, the 2013 nationwide average is at $1,096.

  • Homeowners paid an average of $724 putting the state at the 44th spot in NAIC’s ranking of premiums from lowest to highest
  • Renters, on the other hand, had a median expenditure of $192  giving it the 17th place on the rankings for most to least expensive

ValuePenguin a finance expert, also gave insight as to the monthly homeowners insurance payments made in AZ. According to its assessment, this amounts to $57.94.

When compared to the national average, the state’s yearly insurance premium average of Arizona is nearly .73% lower.

Coverage categories in the event of a loss

Homeowners insurance policies typically provide four different coverage types. Classified as Coverage A (structural losses), B (other forms of structural losses, such as outbuildings, etc.), C (contents), and D (loss of use of the home/Additional Living Expenses). Insurance companies in Arizona also offer other forms of coverage, such as liability and medical payments insurance.

The Additional Living Expense portion of your homeowners insurance policy provides you with a great amount of financial assistance. You’ll find this very helpful in the event that something happens to your home and you can’t live in it for a short period of time. It’ll help cover the costs associated with temporary rent, gas, mileage, and even food.

Key Facts and Market Trends in Arizona: In a separate NAIC study, it provided an assessment of the major facts and market trends in the state. By the year 2015, there are 13 domestic insurance companies in the State of Arizona. The total number of both domestic and licensed foreign insurers, on the other hand, is 763.

Waiting period for insurance company settlements in Arizona

A lot of homeowners insurance policy buyers want to know how long it’ll take before their insurer reimburses them from property damage or loss. As United Policyholders cited, there are several factors to consider, with one of the primary ones including the extent and severity of the damage, or the price of the lost property. In many cases, the waiting period is around 18 to 24 months.

Arizona state rules on cash value, replacement cost and depreciation

Actual Cash Value (ACV) is the total difference between Depreciation Value and Replacement Cost.

Actual Cash Value, or ACV, is one of the terms you’ll most commonly encounter when it comes to your homeowners insurance policy. This pertains to the difference after subtracting the Depreciation Value from the Replacement Cost. Insurers take into consideration the age and the condition of the lost/damaged property. The AVC also depends from insurer to insurer, as it depends on the definition written in the policy.

Replacement cost refers to the expense associated with replacing a lost item or repairing a damaged one. This is the expenditure of insurance companies when replacing a lost/damaged property with the same exact one or something of the same kind and quality.

To learn more about home insurance, read the article: Homeowners Insurance Essentials. Never underestimate the power of homeowners insurance, because this serves as a strong layer of protection for your home and your possessions.