Whether you’re renting your first studio apartment or a penthouse overlooking Phoenix, the place you’re renting holds most of your belongings. Could you afford to replace everything in your apartment if a fire destroys it? And even if you could, is that how you want to spend your savings?
When you have renter’s insurance, you don’t have to worry about what you’d do if your personal property is destroyed or stolen. The insurance will help you pay for replacement items and even protect you from liability if someone gets injured while visiting your place.
Renter’s insurance is readily available and reasonably priced, so it makes sense to invest in it. Read on to learn more about renters insurance in Arizona, including what kinds of coverages you should have and the average cost of renters insurance in Arizona.
Types Of Renters Insurance Coverages Suggested For Arizona
When shopping around for renters insurance, you notice two types of coverage—basic and optional. Let’s explore both to see which ones are ideal for Arizona renters.
Basic coverage
Renters insurance protects you in multiple ways. Basic coverages are:
- Personal property: This covers your personal belongings like your clothes, furniture and computer if stolen or damaged in a covered event, such as a windstorm, fire or another natural disaster.
- Liability: This coverage helps pay for damages or injuries resulting from an accident someone has in your home. If they sue you because of the accident, renters insurance will help cover the legal costs.
- Medical payments: This coverage will help pay the costs of medical care if someone is injured in your home.
- Loss of use: This coverage will help pay your living expenses if you have to live somewhere else temporarily because of a covered loss, such as a fire in your apartment.
Optional coverage
While a renters policy covers many catastrophic events that can occur in Arizona, it doesn’t cover damage caused by flooding. Since flash floods are possible here in the Grand Canyon State, purchasing a separate flood insurance policy may be smart if your rental home is in an area where flooding is possible.
Beyond the basic renter’s policy, consider whether you need optional coverage for any belongings. Optional coverage includes:
- Additional coverage for high-value items, like expensive jewelry. The basic policy limits the value of personal property covered. If you have some very pricey belongings, consider upgrading your coverage.
- Theft extension coverage provides financial protection for items you store in your car or boat.
- Water backup coverage will pay for damage to your belongings if your apartment has a sewer or drain backup.
It’s recommended that you seriously consider getting replacement cost coverage. With replacement cost coverage, the insurance company will pay to replace your damaged or stolen possessions with a comparable new item.
If you don’t have replacement cost coverage, the standard insurance policy will only cover the actual cash value of an item. Actual cash value figures in depreciation and wear and tear, so the actual cash value of your furniture or other belongings is substantially less than it would cost to repurchase it all.
You and your spouse can be on the same policy, but if you share a rental home with a roommate, you each must buy your own insurance. Having separate policies is better because your roommate’s claims won’t go on your claims record. A history of making insurance claims can result in higher insurance premiums.
How Much Is Renters Insurance In Arizona?
The average cost of renters insurance in Arizona is $211 annually or $18 a month, according to a 2023 article by ValuePenguin, which provides consumer data on financial issues. The Arizona average is slightly lower than the overall national average cost of renters insurance, which is $215 a year.
Prices for renters insurance can vary based on several factors, including the location of the place you live, the types of coverage you choose, your deductible, and the maximum payout the policy provides for liability and personal property.
As an example of how location affects the average cost of renters insurance, ValuePenguin notes that Phoenix residents pay an average of $252 a year, or 12% higher than the statewide average, for rental insurance.
Is Renters Insurance Required In Arizona?
There is no law requiring you to buy renters insurance in Arizona. However, your landlord can require you to purchase renters insurance before you move in.
Landlords have an insurance policy that protects them if there’s any damage to the building from a peril like a windstorm or lightning strike. However, the landlord’s policy doesn’t protect your personal property, and requiring you to purchase a renters policy makes it clear that you are responsible for your belongings.
Your landlord may request proof of insurance or even ask you to add them to the renter’s policy as an additional interest. Being named an additional interest means the insurance company will notify them if you cancel the policy. Still, it doesn’t give the landlord the right to modify your policy.
Tips When Shopping For Renters Insurance In Arizona
Here are a few tips to follow when shopping for renters insurance in Arizona:
- Decide how much personal property coverage you need: Someone living in a studio apartment will likely need less coverage than someone renting a four-bedroom home. To determine a good range, estimate what it would cost to buy everything you’d want to replace in case of damage. Determine if you need extra coverage for expensive electronics, jewelry, or artwork.
- Decide on a deductible: The deductible is the amount you will pay out of pocket before the insurance company pays anything toward a loss. Your cost for insurance goes down as your deductible goes up.
- Ask friends for recommendations: Find out what insurance company they use and if they are happy with the service they receive.
- Shop around and compare rates: Get price quotes from at least three insurance companies.
- Ask about multi-policy discounts: If you already have car insurance with an insurance company, you may qualify for a discount if you buy rental insurance from the same insurer.
How Can You Save On Renters Insurance In Arizona?
Renters insurance is a smart investment that could save you thousands of dollars if a fire or storm damages your rental home or other catastrophes occur. A renters insurance policy also provides financial protection if you’re sued by someone who was injured while in your home.
If you are in the market for a renters insurance policy, contact Arizona Central Credit Union today to learn more about our options for renters insurance. You could save more than $500 a year on insurance premiums through our member-exclusive program1. Call us at (602) 264-6421 or toll-free at (866) 264-6421 for details.
Average annual savings based on countrywide survey of new customers from 1/27/2014 to 1/16/2015 who reported their prior insurers’ premiums when they switched to Liberty Mutual’s Group auto and home program. Savings do not apply in MA.
