Arizonans from Tombstone to Phoenix up to Flagstaff are interested in saving money, particularly in the state's current economic climate. And what better way to cut your costs than to reduce the fixed cost of home insurance. The best way to do that is to know a little something about insurance and to comparison shop for your Arizona house insurance rates. So let's look at how to do this.

Arizona Home Insurance Primer

A standard Arizona policy consists of the following:

  • Dwelling- pays to repair or replace your home when damaged by a peril like fire or lightning. Unattached structures like sheds and garages are usually covered at 10% of the dwelling amount.
  • Personal Property (PP)- pays to repair or replace personal belongings when theft or natural acts are involved. Usually insured for 50% of dwelling coverage amount. Personal property off-premises are usually covered for 10% of dwelling amount.
  • Personal Liability- coverage from $100,000 up to $1 million covers you, your family member or a pet (some exclusions) in the event either one is found legally responsible for someone else's injury on or off your property.
  • Medical Payments- coverage from $500 to $5,000 pays for medical bills of persons injured on your property.
  • Loss of Use or Additional Living Expense (ALE)- pays additional living expenses in the event your house is unlivable due to a peril such as fire.

Dwelling coverage is equal to the replacement cost using today's construction costs usually expressed as a cost per square foot. This is not the market value or tax assessed value and does not include the property and foundation.

A Sampling of Arizona House Insurance Rates
In 2010, the Arizona Director of Insurance sampled over 50 insurance companies. Here are several Arizona home insurance examples:

Tuscon Example: New two story, masonry home with dead-bolt locks, fire extinguisher and two smoke detectors. $100,000 Dwelling; $10,000 Other Structures; $75,000 PP; $20,000 ADL, $300,000 Liability; $1,000 Medical Payments; $500 deductible.
Rates range from $219 to $1,367.

Flagstaff Example: Same home and coverage as Tuscon.
Rates range from $259 to $1,367.

Phoenix Example: New two story masonry home with dead-bolt locks, one fire extinguisher, and two smoke detectors. $300,000 Dwelling; $30,000 Other Structure; $225,000 PP; $60,000 ALE; $300,000 Liability; $1,000 Medical Payments; $500 Deductible.
Rates range from $462 to $3,684.

Reducing Your Arizona House Insurance Rates
Now that you have some idea of what to look for, let's look at how you can save money. First, insurance companies offer a number of discounts. Here are some you'll likely find:

  • Home protective devices like dead-bolt locks, smoke detectors, fire extinguishers, automatic sprinklers, burglar/fire alarms, and new plumbing/wiring.
  • New home discounts. The newer the home the lower the risk.
  • Multi-line (home, auto, life) - do they have get more of your business?
  • Senior (55+)
  • Non-smoker
  • Paying in advance vs. making monthly or bi-monthly payments.
  • Payroll deduct payments
  • Military

Secondly, the best way to save on your Arizona home insurance rates is to comparison shop. Let LocalInsurance be your comparison shopper. They'll scour the web looking for the best values from agents in your area. It's free and easy. Now what are you waiting for—start shopping right now!

If you are interested in learning more about Arizona home insurance, there are a number of resources that are offered by the state. Arizona has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.