Best Homeowners Insurance Agencies in Tempe

FAQs

• Introduction

  Homeowners' insurance is a type of property insurance used by private property owners to protect their home and property from a range of risks and liabilities. It is also called home insurance.
  

  
  

  All homeowners' insurance policies cover the primary home on a property, meaning that most damage from weather, accidents, vandalism, and other events will be at least partially paid for by the insurance company. Many policies also include coverage for other structures, personal property, and some premises liability.

  
  

  It is not required by law that a homeowner purchases insurance for their property. However, if you have a mortgage, the lender will usually make purchasing a homeowners' policy a mandatory part of the loan process. Since the mortgage lender is essentially selling you the home, they require you to protect the investment.
  

• What is the average cost of homeowners insurance in Tempe?

  In Tempe, the average cost of homeowners insurance is $1,599, but multiple variables determine its costs. Properties in zones vulnerable to wildfires or vandalism might incur steeper charges. Homes constructed recently, adhering to current codes, typically fetch reduced rates. The size and building materials, such as concrete versus wood, further sway the price. Past claims can lead to increased premiums while elevating deductibles can offer savings.

• For a Tempe resident whose home is rendered uninhabitable due to a covered event, what provisions can they anticipate from the Loss of Use insurance (Coverage D)?

  A Tempe homeowner can expect Loss of Use insurance (Coverage D) to cover additional living costs when a qualifying event makes their home unlivable. This entails footing bills for alternative housing, such as hotel stays, extra mileage for extended commutes, an allowance for meals if there's no kitchen access, charges for relocating possessions, and even pet boarding expenses. This coverage remains active until the home is habitable or a new main residence is established.

• If a Tempe homeowner leaves their property vacant, how can a Vacancy Permit affect their insurance coverage, and what risks might they face without one?

  In Tempe, when a residence is unoccupied, a Vacancy Permit is vital to extend a homeowner insurance policy. This endorsement ensures the property retains basic coverage during the vacancy, although it often reduces and limits certain protections, such as excluding water damage. Without this permit, a homeowner's policy might exclude vacant homes, leading to potential claim denials. It's essential to secure a permit to avoid total loss of insurance during vacancy periods.

• For a Tempe resident securing a mortgage, is homeowners insurance typically included, and can lenders mandate this coverage?

  Homeowners insurance isn't typically bundled with mortgage costs in Tempe. Borrowers must obtain it separately. Lenders usually stipulate having this insurance, much like the requirement for title loan protection, when granting a mortgage. This ensures they have coverage against unforeseen mishaps or damages. If not complied with, lenders have the legal right to mandate borrowers to have insurance up to the mortgage's value.

• For a Tempe resident owning multiple homes, how do homeowners insurance and dwelling insurance differ, especially in terms of occupancy and coverage?

  In Tempe, homeowners insurance is tailored for your primary residence, offering personal, structure, and liability coverage while mandating personal occupancy. On the other hand, dwelling insurance specifically covers the building's structure, excluding liability. It's best suited for rental properties or homes not occupied by the owner. While homeowner's policies can encompass dwelling insurance, it's often utilized to safeguard a second, non-primary property.

• What determines the price of homeowners insurance premium?

  The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.
  

• What is the difference between home warranty and homeowners insurance?

  Homeowners' insurance protects your home and property from damage from events that include storms, theft, and fires. A home warranty covers repair costs for parts of your home that eventually breaks down. For example, if a fallen tree damages your roof, it's typically covered by insurance, not the warranty.
  

• Does Geico offer homeowners insurance?

  Because auto insurance is Geico's focus and where they invest the most in advertising, many people know the company only as a car insurance provider. On the contrary, Geico does offer a range homeowners' insurance policies that cover dwellings, personal property, and personal liability, among other provisions.
  

• How long does homeowners warranty insurance last?

  Home warranties vary based on the provider of the coverage, but most home warranties last for one year. Once they run out, homeowners have the option of renewing the warranty or letting it lapse. If a covered item breaks down after the warranty period is over, repair costs won't be reimbursed.
  

• Does homeowners insurance cover water heaters?

  Homeowners' insurance doesn't cover water heaters when they break down from normal wear and tear. An insurance policy may cover water damage to your home and property if it malfunctions, and if the water heater is damaged by a fire or an accident, home insurance may provide the costs to replace it.
  

• Are RVs covered under homeowners insurance?

  Usually, an RV is covered under your homeowners' insurance, but that coverage will probably be subject to several exceptions and contingencies. For example, if you want to drive your RV, you'll either need car insurance or specialized RV insurance since the risks you'll face on the road do not fall under a homeowner's policy.

• Do new buyers need owner\'s title insurance on a new home?

  There are unique risks that a buyer of a new home may face. For example, property claims from previous owners or liens from suppliers whom the homebuilders never paid during construction. Title insurance protects the home from these perils, and your mortgage lender may require it.
  

• Do owner builders need home warranty insurance?

  In the United States, owner builders are not required to have home warranty insurance. If you're the one who built your home, you're expected to incur the costs of repairs yourself if a structure or appliance breaks down.
  

• Are dogs deaths covered in homeowners insurance?

  Usually, the loss of a dog or other pet is not covered by your home insurance. However, many insurance providers offer riders — packages of added coverage — for pets called pet insurance. This ensures that medical costs and property damage caused by your pets are fully covered.
  

• Are earthquakes covered in standard homeowners insurance policies?

  Standard homeowners' insurance policies do not cover damage directly caused by earthquakes. Insurance will sometimes cover indirect damage, however. For example, if an earthquake causes a fire in your home, damage from the fire will be covered under a standard home insurance policy.
  

• Are homeowners insurance and car insurance deductible?

  Homeowners' insurance and car insurance premiums are not deductible as personal expenses on your taxes. However, some percentage of your premiums may be deductible as business expenses if you own a business and use your car and home for business purposes. This may vary between states.
  

• Are homeowners insurance payouts taxable income?

  If you file a claim after a burglary at your home, for example, the insurance company will assess the value of the property lost or damaged and reimburse that amount. This payout is not taxable because it's not income — it's a replacement of lost value.

• How frequent should one change auto or homeowners insurance to another provider?  

  If you find home and auto insurance policies that you're happy with, you may never want to switch. However, various providers offer different combinations of coverage and price, so you may want to assess all your options every few years.
  

• What should a homeowners insurance include/cover?

  A homeowners' insurance policy should cover the dwelling, personal property inside and some outside, other structures on the property, and liability. For example, it should cover medical bills if a guest sustains an injury. Not all of these coverages are included in every policy.
  

• How much homeowners insurance should someone carry?

  How much insurance you need depends on the size of your home, its age, and other unique factors. Standard insurance policies cover around 70% of the total value of your home and additional covered property. Most policies that offer premises liability include $100,000 in liability coverage.