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Getting a Home Insurance Quote in Arizona

When it comes to owning a home there are many things to keep in mind. While looking to buy, the keys to success include keeping one's emotions at bay, staying within your budget, and having a plan that you can stick to.

Once you are getting ready to move into your house, there are another set of things that must be done. Rather than list them all, the topic of this article - insurance - will be addressed alone.

Insurance for one's home is typically thought to be something extra, but the truth is that you shouldn't own a home and not be insured. Be sure to always use a comparison tool such as the FREE one above!

For those with a mortgage, you do not have a choice; the lender will make it a stipulation of the deal that they will not be party to the contract unless you protect their investment (the loan) with an adequate policy.

The question for some is: what is an adequate policy?

Getting Enough Insurance for Your Home

Do not mistake the amount of what your home cost with the level of insurance it needs.

When you purchase a homeowners policy, the amount may seem high, but that is because the amount you need is not to replace what you paid for the property - allowing you to cut a check to the bank and walk away with the difference - but what it would cost to build that same home, brand new. Reading it, it makes sense. After all, the replacement to the lost structure will be brand new.

What this means is that if you purchased a home that was built in 1962 for $200,000, that same home today might cost $300,000 to build. This amount is what you need to ensure the property for.

Understanding this, it will not be a shock when you get your quotes.

Finding Quotes Through Agents

When getting quotes for insurance, it is good to talk to real people. Having said this, a great place to start is online. It will save time and, for those who are not comfortable saying no to people, money.

Gathering quotes online is easy, and when you can compare all of the data without any human element in the process, the decision that can be made is one that deals with the numbers alone.

Having said this, when you have a quote you like, or a couple that you want to know more about, you should call an agent at your local insurance office. Another option is that if you know someone who is in the insurance business, you can send her the quotes you have found and ask if she can match them.

This will take any of the guesswork out of whether or not you received a good deal, or if your friend took advantage of your friendship.

As discussed earlier, the amount of insurance may create a disparity between what the computer says and what the agent finds. This is why it's important to properly evaluate the prices and policies.

Evaluating Prices and Policies

There are times when a policy is significantly less expensive than another. They appear similar, but they may not be. For this you need to be sure to clarify whether or not the following are matching:

  • Deductible
  • Coverage
  • Personal property limit

The deductible on a policy is the amount that you must come up with before the insurance company is going to pay toward damage. You can raise or lower your monthly premium by adjusting this amount.

For example, a policy with no deductible will have a higher monthly premium than one with a $1000 deductible, and a $2,000 deductible will also bring lower monthly payments.

Sometimes a premium seems like a great deal, but it is because the coverage on the home is not adequate. It might cover the amount that was borrowed, but the whole point of insurance is to be sure to replace the home you need.

When you purchase a house with 4 bedroom and 2 bathroom, you did so because that was what your family needed. If the result of a fire was that your insurance will only cover the construction of a 2 bedroom ranch with no dining room, then the tragedy will only be compounded.

The personal property limit is an interesting variable in this process. For families who pride themselves on finding great second-hand deals for furniture and other items, this aspect of insurance is a flexible one.

For those who buy more expensive items that they worry about being damaged or lost, then this will be more of a necessity

Exploring Additional Insurance Options

According to FEMA's "Arizona Flood Facts", less than 2% of AZ homeowners have purchased flood insurance. On the face of it, this makes perfect sense. It is a dry climate, it is not a coastal state, and the average policy is very good.

This is reasonable, but what is not reasonable is how insurance claims people identify what is flood damage and what is not.

The main takeaways to remember here are that you need to make sure you get enough insurance to cover your home, research policies and plans adequately, and you need to explore and understand the need for additional coverage, be it for personal property or flood coverage.

Proper coverage is essentially the value of your home, but if it is new construction. Quotes for policies and plans can be found online, but do not leave the human element out of the equation. In this process, you must also remember that the policies you find online may not be perfect matches, but they should be close. And then there is flood insurance.

Now that you understand how an insurance adjuster defines flooding, you now also know that you must take full responsibility for getting this covered.

There are programs that can assist you in the wake of a disaster, but FEMA's track record is not the best, and you don't want to be stuck in line behind thousands of others if you can help it.

Be sure to always compare rates fully before making a decision. Use the FREE tool below to get started!

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