If you’re like most homeowners in Phoenix, your home is your most valuable asset, and should be protected as such. The best way to protect your home and your property is by covering them with homeowners insurance. Properly insuring your home can help protect you financially if you suffer a loss due to fire, hail, lightening, theft, vandalism, or other covered events. Above and beyond the protection of your most valuable asset, most all homeowners insurance policies also offer liability protection which offers you financial protection in case you or another household member are liable for certain types of damages to another party like a guest slipping and falling in your home, injuries caused by your pet or a tree from your home that has fallen during a storm and destroyed another neighbor's property.
Homeowners insurance policies differ greatly from policy to policy by which losses are covered, which coverages you choose, and what type of residence you own. Coriano Insurance Agency can help you find a homeowners insurance policy that meets your needs and provides the most valuable combination of customized coverage, quality service and competitive pricing whether you live in Phoenix, Glendale, Scottsdale, Chandler, Mesa, Tempe or Gilbert.
CALL US or send us A MESSAGE to discuss your specific circumstances. We can provide quotes from over 25 carriers. You'll feel better when you know that your home and personal property are protected properly and you can call an experienced agent anytime you need assistance or have a question.
Different Types of Policies
It’s important to understand that no two homeowners insurance policies are created equally. There are three types of policies commonly offered by insurance carriers and it is important to understand their differences and limitations. Each insurer offers different levels of coverage, different endorsements and have varying conditions and limitations. Below are the three coverage levels typically offered by insurers.
The cheapest type of home insurance you can get, but it is also one that is most limited in the extent of coverage you get. Basic home insurance covers you for damages or loss caused by fire, explosion, smoke, theft, lightening, hail, windstorms, airplane or other vehicle damage, broken glass and removing damaged or destroyed property or other things that put your home at risk for more damage. Your coverage only extends to situations that are specified in your policy.
Broad policies give you broader protection than a basic one. In addition to covering everything included in the basic policy, broad policies add coverage for damage to property from freezing temperatures, burst pipes, massive water discharge, things related to the HVAC system and other appliances, hot water heaters, snow, ice, sleet, or a building collapse.
Special policies give you the most comprehensive coverage. Your coverage under a special policy extends to all perils, except property damage caused by fire departments or fire fighters. Other exclusions likely include earthquakes, and always floods.
Common Homeowners Insurance Coverages
These are some common coverages you typically see on a homeowners insurance policy:
This is the portion of your policy that covers the actual structure (main house). The cost to replace your home can fluctuate from time to time based on the cost of raw material and labor, and of course, supply and demand. We’ll run a replacement cost analysis on your home to see how much it would actually cost if the worst happened and you had to rebuild.
this covers any structure on your property that is not permanently attached to your house, like fencing, driveways, sidewalks, and detached buildings like sheds and garages. Usually this coverage is 10% of whatever your Dwelling limit is, but can be increased if you need more coverage.
this covers all of your personal belongings like clothing, furniture, electronics, and appliances. Basically anything that would fall out of your house if you turned it upside down and shook out the contents.
Loss of Use
this covers your living expenses if you need to live somewhere else temporarily because your primary home is uninhabitable due to a loss.
this covers medical expenses for guests if they are injured on your property, and in certain cases covers people who are injured off of your property. It does not cover health care costs for you or other members of your household.
Personal Liability Coverage applies if someone is injured or their property is damaged and you are to blame. The coverage generally applies anywhere in the world. When choosing your liability coverage limits, consider things like how much money you make and the assets you own. Your personal liability coverage should be high enough to protect your assets if you are sued. In some situations, an Umbrella policy may be necessary to provide extra coverage.
Common Optional Coverages that can be Added to Your Homeowners Policy
There are many more endorsements and options that can be added or subtracted from your homeowners insurance policy. Below are a few of the most common.
Personal Property Replacement Cost
The personal property replacement cost endorsement pays replacement cost for your personal property without depreciation in the event of a covered loss.
Water Backup Coverage
Water/ Sewer Backup Coverage is an extension to your regular home, tenant or condo insurance policy, which will pay for damages to your home done by the sewer system backing up. Sewers can backup during periods of heavy rainfall when the city sewer system can simply not handle excess water, causing it to overflow into your home. A sewer backup can cause expensive water damage that is difficult to repair and may also pose a health risk to you and your family.
A personal injury endorsement adds liability protection to your homeowner’s insurance policy for things such as false arrest, wrongful eviction, slander, defamation, personal and advertising injury legal liability and other types of personal injuries that are harmful but are not actual physical damage to the body.
Home Business Endorsement
More and more homeowners are now operating home businesses and need business insurance for a home-based business not provided in a basic homeowner’s policy to cover business equipment and legal liability. The home business endorsement will add this coverage to your policy and usually has limits of 50% of the coverage for your main residence.
Personal Articles (Scheduled Jewelry, Art, Furs, Guns Etc.)
Scheduled Personal Property: If you have valuable items outside of the normal household items such as jewelry, electronics, computers or fine art; you may want to schedule these items to make sure you can replace these items at their full value in the event of a loss. A standard homeowner’s policy sets a dollar limit for items such as jewelry, coins and fine art amongst other items which may not be enough to fully replace something of very high value in the event of a loss.
Additional Replacement Cost
Having Extended Replacement Cost coverage on your homeowners insurance policy means that the insurance provider will pay up to a specified percentage over an insured’s policy limit in order to fully replace a damaged home. This percentage is usually between 125% and 175% of the dwelling coverage on the policy. This coverage enhancement can become very important when there is a sudden spike in construction costs that could push rebuilding costs higher than expected.
Your home is only insured against earthquake damage if you’ve added the earthquake endorsement to your homeowner’s policy. The earthquake endorsement will pay for repairs to your home and other structures not attached to your home (such as a garage) after an earthquake. It can also pay for costs to bring your home up to current building codes and for other incurred expenses such as debris removal.
A personal injury endorsement adds liability protection to your homeowner’s insurance policy for things such as false arrest, wrongful eviction, slander, defamation, personal and advertising injury legal liability and other types of personal injuries that are harmful to another party but are not actual physical damage to the body.
Home Business Endorsement
Many homeowners now operate home businesses and need coverage that is not provided through a basic homeowner’s policy to cover their business' equipment and legal liability. The home business endorsement will add these coverages to your policy for certain types of professions/ businesses.
What effects the price of Your Homeowners Insurance Policy
There are a lot of factors that affect the price of your homeowners insurance. As with auto insurance, credit is a factor and can affect the cost of your homeowners insurance by as much as 40% in some cases. In addition to your credit and the type of home that you wish to insure, the limits, coverages and deductibles that you choose can make a huge difference in the overall cost of the policy. It is best to let an experienced broker take a look at your overall situation to find you the best coverage at the lowest cost.
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