Homeowners Insurance in Phoenix, AZ

Owning a home is a significant responsibility, and part of that responsibility is purchasing homeowners insurance. A homeowners insurance policy can help provide coverage for you, your home and your possessions. By having homeowners insurance, you can help protect yourself financially and reduce your out-of-pocket expenses following a covered incident.

What Is Home Insurance?

Homeowners insurance helps provide coverage for a private home and compensates homeowners in case of a covered loss. The compensation received in a claim depends on the limits and terms set in the policy.

What Does Home Insurance Cover?

A home insurance policy commonly includes the following five types of coverage:

1. Dwelling coverage (may include additional attached structures)

2. Other structures coverage (i.e., a detached garage or shed)

3. Personal property coverage

4. Liability coverage

5. Loss of use coverage

Does Homeowners Insurance Cover Mold?

Most home insurance policies only cover mold infestation if it results from a covered peril, such as accidental water damage from a burst pipe or a washing machine leak. Homeowners insurance will not typically cover a mold infestation if it results from poorly sealed doors or windows, a leaky faucet that you have delayed fixing, a flood or a lack of ventilation in a damp room.

Discussing what is and is not covered with your insurance provider is critical. They can also recommend a homeowners insurance policy for you and your home.

How Much Does Home Insurance Cost?

Homeowners insurance costs vary greatly depending on several factors, including:

• The home’s location
• The price of the house and rebuilding costs
• Coverage types, limits and deductibles
• The house’s age and condition
• Home security and safety features
• The buyer’s credit history

What Is the 80% Rule in Homeowners Insurance?

The 80% rule regarding home insurance is a standard adhered to by most insurance carriers. This term refers to insurers’ expectation that homeowners will purchase enough coverage to pay for at least 80% of the total replacement cost of their home. If this percentage isn’t reached, insurance companies may not provide the full amount of covered losses and instead issue a payout proportional to the 80% standard that should have been retained.

For example, if you own a home valued at $500,000, the 80% rule would expect you to have at least $400,000 in coverage. Should you fall short and retain only $350,000 in coverage, you would have only 87.5% of what’s necessary. As such, if a covered incident caused $200,000 in damage, even though your coverage limits exceed your losses, your insurer may only issue a payout worth 87.5% of your losses. In this scenario, that would mean your insurance would only cover up to $175,000 in damages, and you would need to pay the remaining $25,000 out of pocket.

Homeowners Insurance Quote in Phoenix, AZ

If you need a quote for homeowners insurance, contact Ayala Insurance Services. Call or visit our offices in Phoenix, Glendale, Avondale, Tempe, Mesa or Litchfield today. We can help you find the coverage you need to protect your most valuable assets.