Every homeowner needs home insurance. A home is an important investment; it is most likely your most valuable asset. The way to protect it, and your property, is through homeowners insurance. But more than just protecting your home and property, it gives you liability protection. It covers you if someone is hurt on your property, or someone's property is damaged while they're at your house.
Fulfilling Your Lender Requirement
The Arizona Department of Insurance explains that lenders demand that homeowners who borrow money from them to buy a house, buy insurance to cover their risk. They typically insist that you insure the house for no less than the amount you own on your loan.
That may not cover your property or other things, though. Your lender may recommend an insurer, but you don't have to get your policy through their referral. It's always good to take the time to compare different policies and the premium rates by using the online comparison tools on independent insurance agency websites.
Different Types of Policies for Arizona Homeowners
The Arizona Department of Insurance Homeowners Consumer Guide is a useful resource for learning about different types of policies and the extent of their coverage. There are three types of policies homeowners can choose from, and it is important to understand their differences and limitations. That way, when you ask for online quotes from different companies, you can exactly how much protection you get and what you risk by underestimating the amount of coverage you really need.
The cheapest type of home insurance you can get, but it is also one that is most limited in the extent of coverage you get. Basic home insurance covers you for damages or loss caused by fire, explosion, smoke, theft, lightening, hail, windstorms, airplane or other vehicle damage, broken glass and removing damaged or destroyed property or other things that put your home at risk for more damage. Your coverage only extends to situations that are specified in your policy.
Broad policies give you broader protection than a basic one. In addition to covering everything included in the basic policy, broad policies add coverage for damage to property from freezing temperatures, burst pipes, massive water discharge, things related to the HVAC system and other appliances, hot water heaters, snow, ice, sleet, or a building collapse.
Special policies give you the most comprehensive coverage. Your coverage under a special policy extends to all perils, except property damage caused by fire departments or fire fighters. Other exclusions likely include earthquakes, and always floods.
When comparing policies and coverage and asking for quotes online, be sure to ask about the fire protection class your home is in. It will be a consideration in determining premiums.