2020 Arizona Renters Insurance From Effective Coverage Protects You Across The Grand Canyon State
Arizona renters insurance protects people who are one paycheck from disaster just as effectively as it protects people who have all the money they need. There are more options than ever before in the personal insurance space, so working with an insurance expert is important. Saving money and saving time are important, too, and Effective Coverage has innovated to make coverage accessible quickly and affordably.
Six million people live in Arizona. Almost fifteen percent of them are renters. Only forty-four percent of those residents will have Arizona renters insurance in 2020. This leaves a large number of people exposed to calamity. Worse, many of those renters are the people who are only one paycheck away from disaster. A fire, theft, or even a burst pipe destroying their work clothes could spell disaster for the entire family.
There are a variety of reasons for people not to have renters insurance.
- Air conditioning drives up the electric bill, and budgets are tight.
- Some have lived a charmed life, without ever having a loss.
- Some think they don’t have anything to lose.
- Most commonly, they just don’t know why renters insurance important.
Insurance has traditionally been a black box, inaccessible to most people except as their agent explained it to them. With the rise of direct writers and other types of insurance providers, there are more choices and more confusion than ever before. Effective Coverage works to make insurance accessible to renters in innovative ways. From Phoenix to Scottsdale, from Tucson to Glendale, from Mesa to Chandler, Effective Coverage believes that insurance should be simple and easy.
We pioneered the ability to quote and buy Arizona renters insurance right from your cell phone in just sixty seconds. In 2020, you should expect that level of convenience. You also should expect access to insurance experts by phone, and we have them. If you have questions during the quote process, or you just prefer to speak to someone, just call (800)892-4308 for answers.
2020 Arizona Renters Insurance Guide Table Of Contents
- Can My Landlord Require Renters Insurance In Arizona?
- What Is Medical Payments To Others On Arizona Renters Insurance?
- What Is Loss Of Use On Arizona Renters Insurance?
- Why Do I Need Liability On Renters Insurance In Arizona?
- What Should I Know Before Renewing My Arizona Renters Insurance In 2020?
- Arizona Renters Insurance Fast Facts
- How Much Does Renters Insurance In Arizona Cost In 2020?
- Bonus: Renting In Arizona: Avoid Common Pitfalls
Can My Landlord Require Renters Insurance In Arizona?
Often when someone is reading a lease they’re about to sign a particular clause will catch their eye. We’ve gotten more than a few panicked phone calls asking, can my landlord require renters insurance in Arizona? While we’ve updated this renters insurance guide for 2020, the answer doesn’t change from year to year. Whether or not the owner of your home can make you get insurance hinges on two key questions.
First, Is this a new lease, a renewal lease, or a sudden change in the middle of your lease? The lease is a contract which binds both you and the landlord. Changes can’t just be made in the middle of the contact term. Your landlord can suggest that you buy a policy in the middle of your lease. Your landlord could even tell you that they won’t let you renew your lease without a policy in force at that time. But in the middle of the lease, you’re both bound by what it says now about the current term.
Second, Is the insurance requirement written into the lease? A landlord can require Arizona renters insurance in your 2020 lease, even if you already live there and are renewing your lease. Each formal lease renewal is a new contract, and the landlord may add whatever terms and conditions they like to it. If they add an insurance mandate, and you sign the lease, you’re bound by it.
There are two main types of penalties that you can face if your landlord requires renters insurance in your Arizona apartment and you don’t comply. The first is a simple fee, due and payable as additional rent. It’s usually about the same as what renters insurance would cost, but gives you no protection. It’s just a fee because you didn’t comply with the lease. Additionally, the landlord may pursue any and all remedies otherwise available for lease violations. Some property management firms give notice to vacate if there is no renters insurance in force. Your landlord can require renters insurance in Arizona, and they can enforce it like any other lease provision.
What Is Medical Payments To Others On Arizona Renters Insurance?
- Covers injuries to guests, not you.
- Applies when there is no negligence.
- Solves minor losses efficiently.
- Included as part of the standard HO-4 policy form.
The first thing to know about Medical Payments coverage on your insurance is that it’s for others. Your policy doesn’t provide any coverage for your own injuries because you’re a party to the policy. So what is Med Pay coverage?
If a guest is hurt on your premises, but no one is responsible for the injury, you’ll find the coverage useful. In Arizona, renters insurance will pay the injured person a small amount of money contingent on a release of liability. Do you have kids who roughhouse with their friends? That could result in an injury where you’d be happy to have the coverage. The injury could come from something as simple as sitting down incorrectly and falling out of a chair. It’s certainly not your fault, the injury is minor, and the injured party is willing to admit there is no fault.
What Is Loss Of Use On Arizona Renters Insurance?
What is loss of use coverage? Do I need it as part of my policy? Why do I have to pay for loss of use if I don’t want the coverage?
When there’s a covered loss under your policy, loss of use coverage is triggered. What have you lost the use of? Your home or apartment. The key is that a covered loss has to displace you from the residence premises and make them unusable. Loss of use coverage pays for your alternate living situation while repairs are made or until you find a new residence.
If your neighbor next door has a fire, you’ll have smoke damage that may make your home uninhabitable. A burst pipe anywhere in the building could damage your property and also prevent anyone from living in the building since it lacks water service. Additional living expenses add up quickly. There are thousands of hotels in Arizona, but many of them book quickly for conventions and other large groups. The average price of a hotel room in Phoenix is $135.00 a night. At that price, you can’t expect a suite with a kitchen, so you’ll have additional costs to eat, as well.
Having renters insurance in Arizona helps to cover these expenses so that they don’t have to come out of your pocket. This is one of the standard types of coverage that are included in your policy because it’s part of the standard policy form. Renters insurance is a package policy, so it comes with many types of coverage.
Why Do I Need Liability On Renters Insurance In Arizona?
You are responsible for paying to cure bodily injury or property damage that you cause to someone else by being negligent. No one uses due care 100% of the time. We’re all human, and we’re all fallible. You’re not only worried about yourself, though. Kids can incur liability with shocking frequency. Kids have friends over, the friends get injured. Or they get into trouble by damaging someone’s property accidentally.
Whatever the reason someone believes you’re responsible for their injuries, you now have two problems. You thought that a liability claim was just one problem? Nope! Your first problem is that you need to defend against that claim. That involves many hours of an attorney’s time. That time is expensive. The second problem, of course, is that you need to pay for the loss if you’re responsible. Arizona renters insurance solves both problems easily.
The insurance company will pay for a lawyer to defend you when a liability claim is made against you. That lawyer has an ethical duty to you, even though the insurance company is paying the bills. In fact, there are some cases suggesting that your lawyer is bound not to tell the insurance company if you relate facts that are detrimental to their case! If you’re responsible for the claim, or it settles, the policy pays that amount up to the policy limit.
Don’t worry, your defense costs don’t change how much is available to pay the claim. Defense coverage is “outside the policy limit.” In other words, no matter what the company spends to defend you, your policy limits remain available for the claim. By defending you, the insurance company avoids paying false or frivolous claims and has the chance to settle the claim at their option.
If your apartment community has a playground and your child has friends over, there’s a liability claim waiting to happen. When the friend falls off a swing and breaks their arm, you’ll be sued for not supervising them. The apartment community might also be sued, but that’s a separate matter. Your insurance company may make an offer under medical payments coverage. They may settle the claim if that’s the most efficient way to dispose of it. Otherwise, they will defend you and litigate the claim. All you have to do is give them notice of the claim and be available when they have questions.
Renters insurance in Arizona is very affordable, even with policy limits giving you hundreds of thousands of dollars of liability coverage. You need that protection in this lawsuit-happy world we live in.
What Should I Know Before Renewing My Arizona Renters Insurance In 2020?
It’s easy to obtain Arizona renters insurance in 2020. Whether you need a new policy or a renewal, you should know what goes into the pricing of a policy.
The property and casualty market in Arizona has changed in recent years. While prices have come down somewhat, underwriting standards are becoming tighter. What underwriting standards should you be concerned about when renewing renters insurance in Arizona or 2020? What factors are important?
- Credit and underwriting
- Claims history
- Location and maintenance
- How can you resolve underwriting concerns with these factors?
Credit And Underwriting
It’s common knowledge that credit is used in rating and underwriting renters insurance in most states. Different companies give different weight to various factors on your credit report. Some companies won’t write renters insurance for someone with a recent bankruptcy, and others will write it but price the risk appropriately.
Your claims history is vital to the way your Arizona renters insurance renewal is priced. Statistically, having a claim makes you more likely to have one in the future as well. This risk is priced into your policy and into your 2020 renewal. The size and type of claim are both factors for price impact.
Many people mistakenly think that anything over their deductible is worth making a claim for. If the loss only exceeds your deductible by a few dollars, it’s not worth it. If the loss is something you can’t handle on your own, that’s what insurance is for. That threshold is different for everyone. If you have some savings, you might be able to elect for a slightly higher deductible – say, $1,000 vs. $500 – to save some money and reduce the risk of a small claim impacting your price. That’s a choice that’s based in your personal risk tolerance.
Location and Maintenance
Insurance companies want to know that they’re covering safe and properly constructed dwellings without unexpected risk. Some will take pictures of the outside. If you have an unfenced trampoline that wasn’t disclosed, there’s a problem. That’s an attractive nuisance that adds to the risk they’re taking on. The same applies if the roof is in unserviceable condition and prone to damaging leaks.
Your location is important because of other people near you who may have had claims. The risk of a loss happening is very much tied to your geographic location. Most of Arizona is considered to be low-risk, but you could see a change in premium moving from one part of Phoenix to another part. You wouldn’t buy a car without checking into insurance rates for it, why would you rent a new apartment without seeing what the cost to insure it will be?
Effective Coverage, the nation’s premier renters insurance provider, has programs that will fit every need and budget. If you’re having trouble getting covered, or if you just don’t know where to start, we can help. Whether you want to buy insurance online in sixty seconds or call and speak with an insurance expert who can answer all of your questions and help you choose coverage, we’ve got the answers and the coverage you need at the price you deserve.
Effective Coverage wants to make sure that all of the tenants in the Grand Canyon State have the Arizona renters insurance they need. Years of experience in meeting renters insurance needs in Phoenix, Mesa, and across Arizona helps to add value and subtract cost. The people who most need Arizona renters insurance to protect them from the risks of life are the ones who can least afford it. To solve that problem, convenient payments plans are available to fit almost any budget.
Arizona Renters Insurance Fast Facts
- Every minute in the US, fifteen separate theft crimes occur. At some point in your life, you’re likely to be victimized.
- Your property is not your landlord’s problem. The landlord’s insurance is for the building, not your stuff.
- Arizona renters insurance can replace what was stolen in a burglary as well as protect you from a lawsuit filed by an injured burglar.
How Much Does Renters Insurance In Arizona Cost In 2020?
We saw above that there are many factors that can impact the price of Arizona renters insurance, either as a new policy or a renewal for 2020. The average price is just fifteen dollars a month, or $187.00 per year. In fact, many people pay far less than that. Everyone can afford renters insurance in Arizona, and everyone should have a policy.
Increasing your coverage tends to have only a minimal impact on cost. Two Arizona property management firms we work with, Garden Communities and Holland Partner Group both require $300,000 of liability coverage from their residents. The increased coverage often costs just a few dollars a year. For that few dollars, you get drastically increased protection from the owner of a building you cause damage to. You can increase your personal property coverage for a minimal cost, as well.
Bonus: Renting In Arizona: Avoid Common Pitfalls
The 2020 median rent in Arizona ranges between $740 and $1,010 monthly. That median rent can vary widely based on size of the apartment, quality, and whether you’re in Mesa, Phoenix, Tucson, or Sun City. Arizona is surprisingly affordable to live in and many areas have plenty of available housing. One of the most common mistakes people make when renting is not updating their Arizona renters insurance policy when they move. Make sure the company has your new address.
While the sun shines about 85% of the time in Arizona, that doesn’t mean it never rains! Some parts of the state are subject to flash floods. Don’t forget that flood insurance is a separate product. You can use flood maps and advice from your insurance expert to determine if contents flood insurance is a good idea for you.
An Arizona lease is a binding contract. It will be upheld as written if there is a disagreement on what the terms mean. You also are assumed to have read the document before signing it. Even if your landlord is in a hurry, they’re sure to understand that you want to take a moment to read through the lease and ask questions. They’d rather have the questions now than a misunderstanding later. Always read the lease, you’re bound by it!
Some risks vary across the Arizona. That’s common when making generalizations about an area into which all of New England and Pennsylvania could fit! Residents don’t worry much about hurricanes, unless they live on that one fabled piece of oceanfront property in Arizona. No one has been able to locate that property on a plat map, but it sounds like a great deal. Something or other about throwing in a Golden Gate for free.
Arizona residents do worry about lightning strikes and fires. Hot, dry air puts most of the state at risk for both. Fortunately, your Arizona renters insurance protects you from lightning, fire, and a broad list of other renters insurance perils. That’s why your policy is called a “broad form.”
We hope this Arizona renters insurance guide has been helpful. If you still have questions or need a policy, just call (800)892-4308 or click to get covered - whether you need Arizona renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.