Your neighbors pay as little as $12 a month for coverage.
The average cost of renters insurance in Arizona is $15 a month, or $178 a year, which is close to the national average of $180 a year. That means you can protect your belongings from wind, fire, theft and other events for only a few bucks a month.
|Coverage amount||Average cost per month||Average cost per year|
|Source: National Association of Insurance Commissioners (2019)|
Generally speaking, the cost of renters insurance increases as you purchase more coverage. You should make sure you’re sufficiently insured — you might be surprised by how cheap renters insurance is for higher coverage amounts, especially considering the coverage you get. For example, data suggests going from $20,000 to $44,000 of coverage only adds $17 a year!
Although Arizona residents typically pay $178 a year for renters insurance, it’s possible that you can find cheaper rates. There are a handful of things you can do to find your cheapest rates. For example, you can:
Whether you rent an apartment or a house in Arizona, renters insurance is a low-cost way to protect what you own. There are more than 900,000 rented households in Arizona, but only 41% have renters insurance — that's a lot of property going unprotected.
Many national companies offer renters insurance in Arizona, like State Farm, Farmers, USAA and Liberty Mutual. Prices vary company to company, which is why it's important to get quotes from multiple companies. Here are some of the top renters insurance companies in Arizona, along with customer satisfaction ratings.
|Company||2019 J.D. Power overall satisfaction (out of 1,000)||2019 NAIC Complaint Index (lower is better)|
The NAIC Complaint Index measures the number of complaints a company receives relative to its size, meaning lower indexes indicate fewer complaints. Taking J.D. Power ratings and NAIC figures into account, State Farm, USAA and American Family have the strongest customer satisfaction scores in Arizona.
Companies with a track record of providing great service can give you confidence if you have to file a claim. The last thing you want to worry about after a disaster is how easy it will be to reach your agent or contact your company, or worry about the speed of your claims reimbursal.
Some other things you might want to consider about a renters insurance company are whether they have brick-and-mortar offices close to you, and whether you’ll have a dedicated agent. If you prefer talking face to face or on the phone, this may be important to you. If you prefer managing your account online, you’ll want to make sure the company you pick has a good online experience.
Getting the most out of your renters insurance policy starts with your quote. To get your cheapest rates and the right coverage, you’ll want to get a few quotes from different companies. It can be tempting to just go with the cheapest quote, but all quotes are not made the same. We recommend taking coverage limits and the replacement type into account.
Coverage limits are an important part of your quote because they indicate the maximum amount of money the company will pay out after a covered loss. There are normally four coverage limits:
For instance, imagine your personal property coverage, which protects your belongings, has a coverage limit of $15,000. If you experience an apartment fire and find that you have $25,000 of damaged belongings, your policy won’t cover all of the damage. This can leave you with a massive bill. That’s why paying attention to coverage limits is important.
Many renters don’t realize how valuable their belongings are — think about your mattress, clothes, furniture, kitchen gadgets, electronics and instruments. Your stuff can add up quickly, so you should be sure your coverage reflects its value.
Your quote will specify whether your coverage is actual cash value (ACV) or replacement cost (RC). ACV policies factor depreciation into a claims payment, while RC policies do not. This may seem like a small distinction, but it can mean a difference of thousands of dollars when you file a claim.
For example, imagine you have a $2,000 couch that is destroyed in a fire. If you have a replacement cost policy, renters insurance will reimburse you based on the cost to replace your couch. On the other hand, if you have an ACV policy, the insurance company will factor in depreciation. So, if your couch depreciated by 50% since you bought it, you’ll only be reimbursed based on the depreciated value — $1,000!
RC policies are typically more expensive than ACV policies because they provide more coverage. That means although RC policies are not the cheapest option, they provide more protection, making them a good choice if you want to minimize out-of-pocket costs after a disaster.
Every state has a department of insurance that regulates the insurance industry. All insurance companies in Arizona are subject to the rules set out by the Arizona Department of Insurance. The regulations protect people with renters insurance by setting guidelines for cancelling, renewing and altering policies, among other rules.
Renters insurance is not required by law in Arizona, but landlords can require their tenants to have renters insurance. Your landlord probably has an insurance policy that covers your home’s structure, but landlord insurance does not cover your belongings. That’s why we recommend that all tenants have their own renters insurance policy.
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