Homeowners Insurance in Tempe, AZ

Experts break down home insurance costs, coverages, companies, and more for property owners in Tempe, Arizona.

Written by Meg Stefanac
Written by Meg Stefanac

Financial blogger and business owner, Meg Stefanac, has more than 15 years experience working in the financial services industry and enjoys helping individuals make solid financial decisions. Meg has extensive experience writing about insurance and finances and is a key contributor to TrustedChoice.com.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Swimming pool with terraced patio. Find Tempe, Arizona homeowners insurance.

Around 180,000 people call Tempe home. Whether you are a lifelong resident or recently moved here because of the city’s affordable housing options, good schools, or employment opportunities, if you own a house in Tempe, you can protect the investment you have made in it with homeowners insurance.

Local independent agents have teamed up with some of the area’s most highly rated insurance companies. This enables them to shop around to find you the best and most affordable coverage for your home. Contact an independent insurance agent near you to learn more.

What Is Homeowners Insurance and Is It Required in Tempe, AZ?

Homeowners insurance also called home insurance, is designed to cover loss or damage to your private residence and personal property like furniture, clothes, and electronics.

Although this insurance is not mandated by law, your lender may require it if you still make payments on a mortgage or a home equity loan. If you own your home outright with no liens against it, this coverage is optional but highly recommended, considering how expensive your house is.

How Much Does Homeowners Insurance Cost in Tempe, AZ?

Overall, homeowners insurance rates in Arizona are much lower than the national average. In Tempe, the average cost is higher than the state average but still well below the national average. This is excellent news for property owners in Tempe who are looking for affordable coverage.

  • National average yearly premium: $1,211
  • Arizona average yearly premium: $825
  • Tempe average yearly premium: $966

Rates can vary from one homeowner to the next because insurance companies will base their premiums on several factors like:

  • Your home’s size, age, value, and the materials used in its construction
  • The type of home you are insuring (e.g., single-family detached house, condo, townhouse, mobile home, etc.)
  • 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 its method for calculating costs. Therefore, each company you contact for rates is likely to offer you coverage at a different price.

Comparing customized quotes from a few different homeowners insurance providers enables you to choose the policy that offers all the coverage you want at the most competitive price. Independent insurance agents in Tempe make comparison shopping easy.

Where Can I Find Cheap Homeowners Insurance Near Me?

Buying the cheapest policy is not necessarily the best way to save money when insuring one of the most expensive assets you own. Cut-rate policies can bring you frustration if you need to file a claim and can cost you more in the long run. This is because they often come with:

  • Bad customer service: Some insurance companies offer lower rates because they cut operations costs. This often means fewer customer service reps will be available to take your call if you have a question or need to make a change.
  • Inadequate coverage: You can save and lower your premiums by purchasing a policy that offers cash-value coverage for your belongings instead of replacement-cost coverage. However, you may find that the actual, depreciated value of property like furniture, appliances, and electronics is insufficient to cover you when you try to replace them.
  • High deductibles: You can save money on your premiums by purchasing a policy with a very high deductible, but this can leave you on the hook for a lot of money in the wake of a disaster. If you cannot come up with the funds needed to pay a high deductible amount easily, these policies are probably not worth the savings they offer.
  • A complex claims process: If you are not working with a dependable insurance provider, you may find that filing a claim is overly complicated and that compensation takes a long time to get to you. This can necessitate you to borrow money until the funds reach you so you can begin making repairs.

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 taking a pass on the cheapest policy, the better policy will provide you with more value in the long run.

Independent agents save you time and money by helping you compare policies and rates only from insurance providers that you can depend on.


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What Does Homeowners Insurance Cover in Tempe, 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 Tempe, 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 Tempe include:

  • Fires: This includes damage caused by accidental fires, wildfires, smoke, and firefighting efforts.
  • Property crimes: This includes loss or damage due to crimes like burglary and vandalism.
  • Severe weather: This covers damage caused by hazards like lightning strikes, windstorms, thunderstorms, dust storms, and monsoons, but not the floods that typically accompany these storms.

You will have three types of property coverage:

  • Coverage A: This covers damage to the structure of your house.
  • Coverage B: This covers damage to other structures on your property, like detached garages, sheds, and fences.
  • Coverage C: This covers loss or damage to your personal property like furniture, electronics, and clothing.

You will want to be sure you have enough dwelling insurance to cover the cost of rebuilding your home and enough contents insurance to cover all of your belongings. That way, if a catastrophic event like a fire destroys your house, you will have all the coverage you need to start over.

How Does Loss of Use Insurance Cover Tempe, AZ Homeowners against Displacement?

Loss of use insurance (Coverage D) is a standard part of every home insurance policy. It can cover your extra living expenses if you need alternate accommodations because the damage caused by a covered event has left your home unsafe for habitation.

While your house is being repaired, your loss of use insurance can pay for your extra living expenses like:

  • Staying in a hotel or reasonable accommodations.
  • A meal allowance, if your accommodations do not include a kitchen.
  • Moving and storage facility costs.
  • Mileage reimbursement if you have to drive further to get to work.
  • Pet boarding fees, if needed.

Your coverage can continue until your house is back up to code and it is safe to return to it or until you have built or purchased a new primary residence.

Why Do Homeowners in Tempe, AZ Need Personal Liability Coverage?

Accidents, negligence, and errors in judgment can sometimes end in serious harm to others. This, in turn, can lead to expensive lawsuits.

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 (Coverage E) can cover expenses like legal defense fees, mediation costs, settlements, and judgments.

If you have a lot to lose and want to have even more liability coverage than your homeowners insurance can provide, you can also purchase an umbrella insurance policy. This is an affordable way to boost all of your personal liability coverage significantly.

What Hazards Are Not Covered by Homeowners Insurance in Tempe, AZ?

There are some hazards that homeowners insurance does not cover. You should not expect your policy to pay for damage caused by:

  • Floods: Fortunately, the risk of severe flood damage is extremely low in Tempe. If you feel your home is in danger, you can talk to an independent agent about supplementing your home insurance policy with flood insurance.
  • Earthquakes: Tempe has a moderate risk of seismic activity. The US Geological Survey reports that this city has a 7.94% chance of being hit by an earthquake of magnitude 5.0 or higher in the next 50 years. Therefore, you may want to consider supplementing your home insurance policy with earthquake insurance.

What Is the Burglary Rate in Tempe, AZ?

The burglary rate in Arizona is higher than the national rate. In Tempe, the risk is even higher. Residents of this city report around 1,000 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 Tempe: 4.69

Home security systems are among the most effective theft deterrent. Many insurance companies offer discounts to policyholders who have installed alarm systems and other preventive devices in their homes.

If your house is burglarized, you should ensure that you and your family are safe and then call the authorities. Police will issue you a report that you will need when you file a claim with your homeowners insurance.

What Are the Best Homeowners Insurance Companies in Tempe, AZ?

The insurance companies that stand out above the rest are the ones that have consistently proven themselves with exceptional customer service, reliable coverage, and competitive prices.

Independent insurance agents in Tempe have established relationships with some of the best homeowners insurance companies in Tempe, AZ. You can be sure that any policies and quotes your agent presents you with come from trustworthy insurers.

How Can an Independent Agent Help Me Find the Best Home Insurance in Tempe, AZ?

Local independent agents are available to help you with all of your insurance coverage needs. You can turn to these agents for honest advice, knowledgeable answers to your insurance-related questions, and help with finding the best and most affordable policies.

Arrange an obligation-free consultation with an independent insurance agent near you to get more information. You will soon discover how easy it can be to compare customized homeowners insurance quotes from some of Tempe’s top insurance providers.

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