WHAT’S UP WITH HOMEOWNER INSURANCE IN METRO PHOENIX?

WHAT’S UP WITH HOMEOWNER INSURANCE IN METRO PHOENIX?

You never know when something negative might happen to your home. Homeowner insurance prepares you for big catastrophes and small losses alike. Whether you’re a current homeowner who may need to upgrade your coverage or a potential new buyer who is purchasing home insurance for the first time, this article will guide in determining how to get the right amount of coverage for your Metro Phoenix home.

What is The Difference between Homeowner Insurance and a Home Warranty?

I’m often asked this question and it can be confusing. Homeowner insurance covers unexpected loss such as fire, theft, liability, acts of nature. A home warranty covers systems and appliances that are expected to wear out over time.

How Is Insurance Coverage Determined?

Coverage is typically based on the size of your home and how much it will cost per square foot to rebuild after a disaster. Other considerations are the age of the home, location, size and, of course, your budget. Most insurance companies will require you to purchase coverage that insures 80% of the replacement value of the home.

Do You Have Enough Coverage for Your Metro Phoenix Home?

Markets and circumstances change. Make sure you keep up with the current value of your home to assure your home and everything inside is protected. In addition, confirm that your deductible is set at a price that you can afford in the event you need to rebuild or do extensive repairs. Let your agent know if you’ve got a special art collection, valuable jewelry, or a home office with equipment and supplies so that they can suggest additional riders that might be necessary.

Do You Need Flood Insurance?

In the Metro Phoenix area, you may, or may not, need flood insurance so talk to your agent to verify if coverage is needed. Coverage for the water damage from a flood inside your home is different than having flood insurance.  Your insurance agent will talk to you about the difference and make sure you’re covered if you should end up with water inside your home.

Are You Adequately Covered with Your Current Policy?

Current homeowners should meet with your insurance agent to determine if your coverage needs have changed. Let your agent know about home improvements or newly acquired valuable possessions that should be included in your policy. These upgrades will need to be photographed and documented and your agent will advise you if you need additional coverage. It’s essential to choose the right company, the right price, and the right coverage for your individual situation.