Homeowners Insurance in Scottsdale, AZ
Experts break down home insurance costs, coverages, companies, and more for property owners in Scottsdale.
More than 240,000 people call Scottsdale home. Whether you are a lifelong resident or just recently moved to this Arizona city, if you have purchased your house, you can protect the investment you have made in it with a good homeowners insurance policy.
Local independent agents are free to work with some of Scottsdale’s most highly rated insurance companies, so they can shop around to find you the best and most affordable policy. Contact an independent insurance agent near you to learn more.
What Is Homeowners Insurance and Is It Required in Scottsdale, AZ?
Homeowners insurance is a personal insurance policy designed to protect your investment in your home and your property.
Although this insurance is not required by law, your lender may want you to carry it if you still make payments on a mortgage or a home equity loan. Homeowner insurance coverage is optional (but highly recommended) once you own your house outright with no property liens.
How Much Does Homeowners Insurance Cost in Scottsdale, AZ?
Overall, homeowners insurance rates in Arizona are much lower than the national average. In Scottsdale, the average rate is much higher. This is mainly because of the large number of high-value homes in the area. Shopping around for the best rate can save you hundreds of dollars a year.
- National average yearly premium: $1,211
- Arizona average yearly premium: $825
- Scottsdale average yearly premium: $1,650
Insurance companies will base your actual premiums on several factors such as:
- Your home’s age, value, and construction
- The type of home you are insuring (e.g., single-family detached house, condo, townhouse, mobile home, vacation home, investment rental property, etc.)
- The size of your home in square feet
- The crime rate and weather risks where your home is located
- Your claims history and credit score
- Whether you are bundling your coverage with other policies like car insurance or RV insurance
Every insurance company has a proprietary way of calculating costs. Each company you contact is likely to offer you coverage at a different price.
When you compare customized quotes from a few different homeowners insurance providers, you can choose the policy that offers the coverage you want at the most competitive rate. Independent insurance agents in Scottsdale make comparison shopping easy.
Where Can I Find Cheap Homeowners Insurance in Scottsdale, AZ?
You’ve heard the saying, “You get what you pay for.” This is true for many things, including homeowners insurance.
Buying the cheapest policy is not necessarily the best way to save money when insuring one of the most expensive assets you own. It could even end up costing you more in the long run. That’s because cut-rate policies often have:
- Poor customer service: It can be hard to reach a customer service representative if you have a bargain-basement insurance policy. If you don’t like navigating automatic phone systems and sitting on hold for a long time when you need to talk to an actual human, you might want to be picky about the company you purchase your coverage from.
- High deductibles: You can save money on your premiums by purchasing a policy with a high deductible, but this can leave you on the hook for a lot of money in the wake of a disaster. For instance, if you have a $5,000 deductible, and your roof sustains $6,000 in damage, you can only be reimbursed $1,000 by your insurance company. This may be problematic unless you have a large emergency fund to draw from.
- A difficult claims process: If you are not working with a reputable insurance provider, you may find that the claims process is overly complicated and that compensation takes a long time to get to you.
To ensure that you have all the coverage you need when you need it, you will need to buy your policy from an insurance company you can trust. While this may mean you are forgoing the cheapest policy, the better policy will provide you with more value in the long run.
Independent agents can save you time and money by helping you compare policies and rates from dependable insurance providers.
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What Does Homeowners Insurance Cover in Scottsdale, AZ?
Homeowners insurance protects your property and finances in three ways:
- By covering your property
- By covering against displacement
- By covering against liability lawsuits
Read on to learn more about each of these coverage types.
How Does Property Insurance Help Homeowners in Scottsdale, AZ?
Your home insurance can pay to repair, rebuild, or replace your property if it is lost or damaged by a covered event. Some of the covered risks that are most likely to affect property owners in Scottsdale include:
- Fires: Your policy can cover damage caused by flames, smoke, and firefighting efforts if an accidental fire or a brushfire impacts your home.
- Property crimes: Your policy can cover the cost of replacing stolen property and repairing damage caused by vandalism.
- Severe weather: Homeowner insurance covers damage caused by weather events like lightning strikes, windstorms, thunderstorms, and monsoons, but not the floods that typically accompany these storms.
You will want to be sure you have enough dwelling insurance ("Coverage A") to cover the cost of rebuilding your home and enough contents insurance ("Coverage C") to cover all of your personal property. That way, if a catastrophic event like a fire destroys your house, you will have the funds needed to start over where you left off.
How Does Loss of Use Insurance Cover Scottsdale, AZ Homeowners against Displacement?
Loss of use insurance (sometimes called “Coverage D”) is a standard part of every home insurance policy. It can cover your extra living expenses if you need alternate accommodations because your home has been rendered uninhabitable by a covered event.
While your house is being brought back up to code, this coverage can pay for things like:
- A hotel or other reasonable accommodations
- A meal allowance, if your accommodations do not include a kitchen
- Moving fees and storage facility costs
- Mileage reimbursement if you have to drive further to get to work
- Boarding fees for your pets if they are not permitted in your temporary accommodations
Your coverage can continue until it is safe to return to your house or purchase a new one.
Why Do Homeowners in Scottsdale, AZ Need Personal Liability Coverage?
Anybody can get sued. Anybody.
Accidents, negligence, and errors in judgment can sometimes result in serious harm to others, leading to expensive lawsuits. Your homeowners insurance safeguards your property and assets by providing you with a significant amount of personal liability coverage as a standard part of its coverage.
Homeowners liability insurance (sometimes called "Coverage E") is designed to cover the expenses related to personal liability lawsuits such as legal defense fees, mediation costs, settlements, and judgments.
If you or someone in your household unintentionally causes someone else to experience injuries, financial losses, property damage, or other harm, your homeowners liability insurance can protect you.
If you have a lot to lose and want more liability coverage than your homeowners insurance can provide, you can also purchase an umbrella insurance policy. This is a very affordable way to boost all of your personal liability coverage significantly.
What Hazards Are Not Covered by Homeowners Insurance in Scottsdale, AZ?
As with any insurance policy, homeowners insurance has some limitations. In particular, you should not expect your insurance to cover against:
- Flood damage: Heavy rains can quickly saturate the ground and overwhelm drainage systems during the monsoon season. This can lead to flash flood damage. More than 7,000 properties in this city have at least a 26% chance of sustaining significant flood damage over the next 30 years. If your house is one of them, you can protect it against this hazard with flood insurance.
- Earthquake damage: Scottsdale has a moderate risk of seismic activity. The US Geological Survey reports that this city has an 11.57% chance of being hit by an earthquake of magnitude 5.0 or higher. Homeowners can cover damage to the structure of their homes and their personal property by purchasing an earthquake insurance policy.
What Is the Burglary Rate in Scottsdale, AZ?
The burglary rate in Arizona is higher than the national rate. Fortunately, in Scottsdale, the rate is lower. Even still, residents of this city report around 750 burglaries a year.
- Number of burglaries per 1,000 people in the US: 3.76
- Number of burglaries per 1,000 people in Arizona: 4.40
- Number of burglaries per 1,000 people in Scottsdale: 2.54
You can lower your risk of being targeted by burglars by taking precautions like stopping mail and putting lights on timers while you are away, keeping entryways to your home well-lit and unobscured, or even by getting a guard dog.
Home security systems are among the most effective theft deterrents. That is why many insurance companies offer discounts to policyholders who have installed them in their homes.
Unfortunately, even with safeguards in place, burglaries can still occur. If you are the victim of a property crime, it may give you some peace of mind to know that your homeowners insurance can compensate you for your losses. You will need a copy of a police report when you file your claim.
What Are the Best Homeowners Insurance Companies in Scottsdale, AZ?
The insurance companies that stand out above the rest are the ones that have proven themselves consistent with providing responsive customer service, reliable coverage, and competitive rates.
Independent insurance agents in Scottsdale have teamed up with some of the best homeowners insurance companies in Arizona. When these agents present you with a selection of policies and quotes, you can be confident that they are all coming from trustworthy insurers.
How Can an Independent Agent Help Me Find the Best Home Insurance in Scottsdale, AZ?
Independent agents are ready to help you with all of your insurance coverage needs. You can turn to one of these local agents for trustworthy advice, knowledgeable answers to your coverage-related questions, and help with finding the best and most affordable homeowners insurance policy.
Arrange an obligation-free consultation with an independent insurance agent near you to learn more. You will soon discover how easy it can be to compare customized homeowners insurance quotes from multiple providers.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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