Options for Landlord Insurance in Arizona to Count On
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We Access Many Top Carriers to Find Solutions for Landlord Insurance in Arizona.
Notable Risk specializes in obtaining landlord insurance in Arizona, which significantly benefits our clients. By working with us, you gain access to competitive and reliable carriers, along with the assurance of a trusted insurance agency that is committed to achieving exceptional results.
We use MBA and JD degrees, and lots of client dedication, to deliver outstanding service and trustworthy results.
With our extensive prior experience advising on over $1.0 billion in real estate transactions of all sizes, we bring a wealth of knowledge to the table.
This means that when you partner with us, you can expect to receive valuable insights and guidance that can prove to be difference-makers for your insurance program.
We can assist you in finding excellent insurance coverage for your rental properties, including single-family homes, multi-unit buildings, and portfolios of multiple properties.
We will locate insurance solutions for your retail shopping center, office building, mixed-use property, warehouse, or parking lot.
From luxury hotels to bed and breakfasts, we can find competitive carrier options for a small to large number of keys.
No gotchas! When it comes to landlord insurance, our specialist approach means we have reliable answers for investors in the Grand Canyon State.
At Notable Risk, we believe our insurance agency’s focus on a specific area yields big benefits for clients!
That’s why we specialize in real estate and provide access to national and specialist insurance companies that offer targeted solutions for real estate investors.
We prioritize your Arizona real estate insurance needs and value consultation over standardization, recognizing that each client has unique requirements. With 20 years of prior experience in risk management, we have the breadth of knowledge to offer rock-solid insurance programs to our clients.
We strive to build insurance programs that we would offer to our own family.
Work with Notable Risk and receive the highly personalized assistance your Arizona investment properties need. Please call 888-897-4815 to speak with us today.
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Real estate is local so we bring multi-state resources to individual towns*
We find better landlord insurance in Arizona. Count on us to build dependable coverage for investment properties across all 15 counties statewide.
Investing in real estate in any of the 15 counties in Arizona might be a good area to give further thought to for those looking to diversify their portfolio or purchase their first investment property.
The state’s economy continues to grow, and its low unemployment rate and favorable climate all add up to an attractive destination for both residents and tourists.
To capitalize on this, Arizona offers lots of options for real estate investments, from single-family homes and condos to multi-unit apartment buildings and commercial properties. This allows investors to target specific asset classes and diversify their portfolios within the state.
Not surprisingly, Arizona’s strong tourism industry also contributes significantly to its economy. Cities like Phoenix, Scottsdale, Sedona, and Tucson attract millions of visitors each year — lots of warm weather and beautiful scenic areas to explore!
With some careful analysis, planning, and review of each county’s market conditions, landlords may be able to find rewarding real estate investments in this popular southwestern state!
Whether you currently own rental properties or plan to close on an investment shortly, Notable Risk can help you find solutions for landlord insurance in Arizona!
DISCLAIMER: The information contained herein is for illustration purposes only and shall not be relied upon for any purpose. Notable Risk does not provide any investment advice of any kind or nature whatsoever. You must consult your real estate agent, lawyer, tax advisor and other professionals.
Yavapai County has a diverse and growing population, picture-worthy landscapes, and a strong economy. The area offers lots of options for residential and commercial properties.
The county is home to several vibrant cities and towns like Prescott, Sedona, Cottonwood, and Camp Verde, which have a steady stream of tourists throughout the year due to their scenic beauty, outdoor recreational activities like hiking and camping, as well as great cultural attractions like art galleries and music festivals.
The county also has a really strong job market with many key industries including healthcare, education, and tourism/hospitality services. As a result, there is a consistent demand for rental properties from both locals and transplants relocating for work opportunities.
Additionally, Yavapai County’s jacket-free climate with mild winters and warm summers makes it an ideal destination for retirees and others looking to flee frigid weather in other parts of the country.
Overall, Yavapai County presents a number of real estate opportunities to consider in this energetic area of Arizona!
Maricopa County in Arizona provides a diverse range of real estate opportunities to consider.
For starters, the county has a population of over four million people and is home to Phoenix, the fifth-largest city in the United States!
Maricopa County also includes other popular cities such as Mesa, Scottsdale, Tempe, and Chandler, which not only offer diverse economic opportunities but also provide an attractive lifestyle with lots of amenities such as shopping centers, restaurants, recreational parks, and popular entertainment venues.
One of the other key factors that make Maricopa County an attractive choice for rental property investment is its really robust job market. For many years, the county has achieved a thriving economy with local industries ranging from healthcare and education to technology and manufacturing. This diversity and strength in employment ensures a steady influx of potential tenants who are seeking high-quality rental units.
Maricopa County also benefits from favorable weather conditions throughout the year, attracting both permanent residents and seasonal visitors (looking for sun and outdoor activities!) who often prefer to rent homes. This creates a steady supply of opportunities for long and short-term landlords.
Over the years, the real estate market in Maricopa County has shown remarkable growth, with property values steadily increasing due to these demand drivers and limited inventory.
With all of this in mind, investing in rental housing in Maricopa County can potentially be the right plan for some given its expanding population and strong economic prospects.
Before you jump into your rental housing investments in Maricopa County, it’s important to work with experienced professionals such as real estate agents or property management companies. They have knowledge about local conditions and can assist with everything from finding tenants to ensuring compliance with Arizona landlord-tenant requirements.
It’s important to build a great team, including your real estate insurance agency partner!
Pinal County, located just southeast of Phoenix, has a lot of potential opportunities for real estate investors to review.
As a starting point, the county has a very diverse economy supported by industries such as agriculture, manufacturing, healthcare, and transportation.
This economic diversity helps create important stability and job opportunities for residents, and in turn, makes it an attractive location for tenants.
In addition, the county is home to several major cities including Casa Grande and Apache Junction, which provide popular amenities such as shopping centers, great restaurants, fun entertainment venues, and educational institutions.
Not surprisingly, these urban areas also offer a wide range of rental options as well.
Apart from economic benefits, Pinal County also benefits from its proximity to popular tourist destinations such as the Superstition Mountains, the Tonto National Forest, Casa Grande Ruins National Monument, and Picacho Peak State Park. The area’s natural beauty attracts visitors all year who typically seek short-term vacation rentals during their stay. This presents another potential real estate asset class for investment — short-term vacation rentals or Airbnb accommodations.
Another key advantage of investing in Pinal County is the growing population. With more people moving to the area for job opportunities and a lower cost of living compared to larger metropolitan areas like Phoenix or Tucson, there is a strong and consistent demand for housing.
Lastly, Pinal County benefits from its proximity to major transportation routes. The county is intersected by Interstate 10 and has easy access to other highways such as State Route 347 and State Route 87. These connections make commuting convenient for residents working outside the county while also attracting potential tenants who prefer the added accessibility.
With the strong interest in Pinal County and the fact that investors can find comparatively more affordable options, it looks to continue as an area for real estate investors to take a closer look into.
Pima County offers a range of potential opportunities for property investors to review more carefully.
Situated in the southern part of the state, the county has a strong economy with a variety of industries that call home to the area, including aerospace and defense, healthcare, education, technology, and tourism. The presence of major companies and educational institutions like Raytheon Technologies Corporation and the University of Arizona only further enhance the investment opportunities.
Investors can choose from various asset classes within the county’s real estate market. Residential properties such as single-family homes, townhouses, and multi-unit apartment buildings are in high demand due to the county’s growing population. The county’s commercial real estate market is also attractive, with significant growth in healthcare, technology, and tourism industries creating a demand for office spaces, retail stores, hotels, and other commercial properties.
Moreover, Pima County’s proximity to Tucson, Arizona’s second-largest city and economic hub, provides additional investment potential. The city offers many job opportunities and amenities that attract renters or potential buyers, giving investors the opportunity to invest in residential or commercial properties nearby.
In terms of connectivity, Pima County’s transportation infrastructure is well-developed, including highways, railways, and airports (including Tucson International Airport), making it easily accessible from other parts of the country.
Beyond its thriving economy, Pima County offers a high quality of life with beautiful natural landscapes such as the Sonoran Desert, Saguaro National Park, and Mount Lemmon. This makes it an attractive destination for retirees seeking a peaceful environment or outdoor enthusiasts looking to explore hiking trails or engage in other recreational activities.
Pima County is an important location for real estate investors to do due diligence on given its diverse market options, residential growth, tourism industry, proximity to Tucson, well-developed transportation infrastructure, and high quality of life (lots to do and plenty of sun)!
For those hoping to invest in rental properties, Graham County can be an area to add to the list for consideration due to several factors.
Firstly, the county has experienced consistent population growth over the years, which creates a steady demand for housing options such as apartments or single-family homes.
Additionally, Graham County is home to several industries such as agriculture, mining (including copper), manufacturing, healthcare services, education institutions (such as Eastern Arizona College), and government agencies. This mix of industries makes the county more resilient to economic fluctuations.
Graham County is also known for its stunning natural landscapes, including parts of the Gila River and Mount Graham. The county also has other popular hiking trails, camping sites, fishing spots, and historical landmarks such as Fort Thomas Historic Site or Discovery Park Campus & Museum, attracting tourists all year round. This big influx of tourism also supports short-term rentals and vacation home properties.
Apart from these attractions within Graham County, the county also benefits from its proximity to larger cities like Tucson and Phoenix. These urban centers attract professionals and families who often desire suburban areas with good schools and local amenities. This creates consistent demand for rental properties within commuting distance of these anchor cities.
All of these factors make Graham County worthy of a few property tours and more underwriting for those looking to invest in this popular portion of the Arizona real estate market!
Located in the northeast of Arizona, Navajo County offers a potentially strong list of opportunities for real estate investors. Overall, the county has a diverse and growing population that creates a steady demand for many different types of rental properties.
It is home to several cities and towns, including Holbrook, Show Low, Winslow, and Snowflake-Taylor, which offer a range of amenities such as schools, shopping centers, and recreational activities.
Navajo County also has a strong agricultural sector and is home to several major employers such as manufacturing plants and healthcare facilities. These industries provide stable employment opportunities which in turn creates consistent tenant demand.
Visitors are drawn to this area for its scenic national parks like Petrified Forest National Park and historical sites like Winslow’s Standin’ on the Corner Park (made famous by an Eagles song). Real estate investors can tap into this tourism industry by offering short-term rentals or vacation homes for rent.
Another advantage of investing in Navajo County is its proximity to larger cities like Flagstaff and Phoenix. Being within driving distance allows residents easy access to urban amenities while enjoying the slower pace and charm offered by smaller communities within the county.
Navajo County is also affordable compared to other parts of Arizona, making it an appealing option for both first-time investors and experienced landlords.
Lastly, Navajo County benefits from its proximity to major transportation routes such as Interstate 40 and US Route 60/70/191. This accessibility allows residents easy commuting options while also attracting potential tenants who value convenient travel connections.
With its affordable living costs, diverse economy supported by multiple industries including agriculture and tourism, along with its convenient location near major cities; Navajo County can be an appealing real estate investment destination for landlords to give further thought to!
Coconino County may be a wise area to consider for those interested in property investing. As a backdrop, the county’s diverse and growing population provides important demand for investment properties.
It’s home to the world-famous Grand Canyon National Park, which attracts millions of visitors every year. This major source of tourists creates a robust demand for short-term rentals such as vacation homes or Airbnb housing.
Moreover, Coconino County houses several universities including Northern Arizona University (NAU). These institutions attract students from all over the country who require off-campus housing options. As a result, investors can tap into the student housing market by acquiring properties near campus — albeit they tend to sell very competitively due to student housing investor demand.
Lastly, Coconino County has a relatively low cost of living compared to other parts of Arizona like Maricopa County (Phoenix) or Pima County (Tucson). This affordability factor makes it an attractive destination for individuals looking for less costly rentals while still enjoying access to great amenities and popular recreational activities.
Overall, Coconino County’s vibrant economy coupled with its scenic attractions makes it a popular destination for residents and tourists.
Be efficient. Get more Arizona REI coverage solutions.
When you work with Notable Risk, we can help you obtain all of your Arizona investment property requirements. Our networks allow us to find lots of great insurance company solutions. Contact us if you are looking to insure any asset class from a portion of the 68,225,232 square feet of office to part of the 40,915,378 s.f. of industrial space across Arizona.
Our Simple Landlord Insurance Quote Process for Busy Investors
Assess unique needs of each AZ investor
With your dedicated advisor ready to help, submit a quick and valuable online risk-assessment tool.
Find risk exposures and structure policies
We review your data and build policies. We then access our networks to get quotes from leading national and specialist insurance companies.
Deliver personalized video quotes
We deliver your quotes via video (with helpful explanations)! Watch when it’s convenient for you while your principal advisor is waiting to help.
Bind coverage and value-add starts
You decide on the right coverage to obtain. Once it’s bound, we start value-added risk mitigation services with AZ landlords in mind!
We slow down to work closely with clients. Whether you want more information about the best landlord insurance companies in Arizona or why coverage is recommended, you can expect patient, hands-on help.
As a real estate investor in Arizona, it’s crucial to have insurance coverage that safeguards you from financial loss. Did you know that vacant units can lead to denials of claims leaving you to come out of pocket for potentially thousands of dollars, or more?
At Notable Risk, we help identify this overlooked and costly exposure.
To ensure that each client receives personalized and comprehensive coverage, we offer a tailored onboarding program. Our valuable process helps identify potential risks (like vacant rental units) and builds dependable coverage plans for properties located in cities like Tuscan, Phoenix and many others.
At the end of the second quarter of 2023, the vacancy rate across Arizona was 6.7%. The percentage was much higher, however, in the Phoenix-Mesa and Tuscan metro areas where the vacant rates were 9.2 and 14.0%, respectively. These were large jumps compared to just prior years. (Source: ipropertymanagement.com)
Many landlord insurance companies in Arizona, and beyond, will exclude some or all causes of loss to the extent that a rental property is vacant for 30-60 days or greater. For example, claims surrounding issues like burglary and vandalism are almost always excluded. We help investors obtain a rider or vacant property coverage to close coverage gaps.
At Notable Risk, you will find a partner that invests in you (over and over) for the long term.
We can help you understand how much rental property insurance costs. Arizona’s environmental risks play a large role and call for smart coverage solutions.
53% of all properties in Arizona will be subject to wind risk (e.g. severe storms) over the next three decades.
Arizona experiences high winds throughout the year, which can cause significant damage to structures. These winds are primarily caused by weather patterns like monsoons and dust storms, which are common in the state.
Strong gusts can lead to roof damage, broken windows, or even structural collapse, posing a risk to both residential and commercial properties as well as infrastructure.
Arizona’s varied topography, including mountains, canyons, and deserts, creates unique wind patterns that contribute to the occurrence of high winds.
Riskfactor.com indicates that 74% of properties across the state are subject to wildfire risk over the next three decades. That’s a whopping 2.46 million properties!
Arizona is at significant risk of wildfires due to its arid climate, abundance of vegetation, and rugged terrain.
The state’s hot and dry summers provide ideal conditions for wildfires to ignite and spread quickly.
With a vast amount of flammable brush, grasses, and trees covering the landscape, there is an abundance of fuel available for fires to consume.
Arizona’s mountainous regions pose additional challenges for fire management due to steep slopes and difficult access, which make it harder for firefighters to contain and control wildfires effectively.
Strong winds that are common in the region can also worsen fire behavior, causing flames to spread quickly across vast areas
Over the next three decades, 18% of all properties in Arizona will have more than a 1 in 4 chance of suffering flood damage.
While it may not experience frequent or severe floods like other parts of the country, there are still areas in Arizona that are prone to flood events.
The state’s unique topography and weather patterns can contribute to flash floods, particularly during monsoon season.
One major factor that increases flood risk in Arizona is its arid landscape. Due to the lack of vegetation and compacted soil, rainwater cannot easily be absorbed into the ground. Instead, it quickly runs off and accumulates in low-lying areas or urban settings with inadequate drainage systems.
Another contributing factor is Arizona’s rugged terrain. Steep slopes and canyons can channel water rapidly downhill, leading to sudden surges of water that overwhelm nearby communities.
Hail storms are a common occurrence in the state of Arizona. These storms typically happen during the monsoon season, which runs from June to September. The intense heat and moisture in the atmosphere create ideal conditions for hail formation.
Hailstorms in Arizona can be particularly destructive due to the size and velocity of the hailstones. They may be small pebbles up to golf balls or even larger.
The impact of large hailstones can cause extensive damage by breaking windows, denting cars, and damaging roofs of commercial and residential rental properties.
Areas in Arizona with higher elevations such as mountainous regions tend to experience more frequent and intense hailstorms compared to lower-lying areas.
Real estate investor insurance programs need to tackle many exposures. We make complex things, simple.
Experience is a difference maker.
We will carefully analyze your assets and operations. The result: we protect you better!
Commercial umbrella coverage acts as an additional layer to provide more liability protection above standard landlord insurance or commercial auto limits.
This type of coverage protects landlords from financial losses that may arise due to sudden and unexpected breakdowns of essential equipment like boiler and refrigeration systems.
It helps cover legal expenses and damages if a landlord is sued for discriminatory practices, like refusing to rent based on factors like race, gender or religion.
This type of insurance is typically required by law in Arizona and protects both employers and employees in the event of workplace accidents or occupational diseases.
It provides compensation for damages to the structure and contents of the property in case of flood-related incidents and is purchased privately or via the National Flood Insurance Program (NFIP).
Frequently Asked Questions to Understand Landlord Insurance in Arizona
Does landlord insurance cover a tenant's failure to pay rent
Standard landlord insurance does not cover a tenant rent default. Instead, this coverage is designed to provide dwelling coverage, liability protection, and loss of rents compensation (from business interruption due to a covered cause of loss such as a fire or storm).
Who do you think are the best landlord insurance companies in Arizona
There are a large number of large national and specialist landlord insurance companies that provide coverage in Arizona for rental properties.
We believe that these companies offer comprehensive coverage, competitive rates, and excellent customer service:
Allstate Insurance Company
State Farm Insurance Company
Liberty Mutual Insurance Company
Travelers Insurance Company
USLI Insurance Company
Foremost Insurance Company
If you’re looking for landlord insurance policies, there are some strong and reliable technology-based companies that operate as a type of wholesaler. Unfortunately, some of the newly popular insure-techs don’t currently offer their insurance products in Arizona. Here are a few, however, that Notable Risk recommends which are now licensed in the Grand Canyon State:
What is the cost of landlord insurance in Arizona?
Several factors can affect the cost of landlord insurance in Arizona. These include the location of the rental property, the type and age of the building, the coverage limits chosen, the deductible amount, the expected rental income, the landlord’s claims history, additional coverages, tenant screening practices, security measures, and the claims history.
For smaller residential investment properties (1-4 units), the average cost for rental home insurance ranges from about $500 to $1,000, while larger properties, or those where the factors noted present higher risk exposures for landlord insurance companies, will require premiums that are greater than these amounts.
Every situation is unique and the landlord insurance costs noted are general illustrations and shall not be relied upon for any purpose. It’s important to consult a licensed insurance agent to discuss your properties and coverage needs.
Does landlord insurance cover vacancy?
If your rental properties are vacant when you seek landlord insurance, you will need to obtain a vacant property policy. These companies, like Vacant Express, who we work with at Notable Risk, specialize in writing coverage for properties that have no contents or occupants. In most cases, the vacancy coverage can be written for a shorter or longer duration and converted to a standard landlord insurance policy (with the existing carrier like Vacant Express or a typical national carrier like Liberty Mutual or USLI that focuses on writing the permanent coverage).
One other situation that investors need to be very mindful of occurs when your existing rental property becomes vacant after the inception of your landlord insurance policy. For example, it the vacancy is 30-60 days, or more, even if it’s due to tenant default or longer than expected tenant roll and releasing efforts, you still will require vacancy coverage (whether it’s an endorsement to your current policy or standalone policy). Landlords that fail to obtain vacancy overage are at risk of a denial of claim from their current investment property carrier given that most policies have exclusions for causes of loss like water damage from frozen pipes that occur during any period of extended vacancy.
This is a very important exposure to continue to monitor at all times and immediately alert your insurance agent of any changes to avoid out-of-pocket losses to your vacant rental properties.
How can I reduce the cost of landlord insurance premiums?
Landlords can take advantage of different types of credits to potentially decrease their insurance costs.
One such credit is the claims-free credit, which rewards landlords who have not filed any claims during a specific period (typically, multiple years). This credit can result in reduced premiums for landlords who show that they are responsible and safe owners who maintain their properties well.
Another credit type that can help lower landlord insurance costs is the multi-policy discount. Landlords who have multiple policies with the same insurer, such as both homeowners and landlord insurance policies, may be eligible for a discount on their combined premium amount. Bundling not only can provide savings but it can greatly simplify administrative tasks for landlords and property managers by consolidating coverage.
Additionally, some insurers offer discounts based on certain safety features introduced in rental properties. For example, installing smoke detectors, security systems, and fire extinguishers can make landlords eligible for safety-feature credits, particularly where the systems are monitored by 24-7 remote centers. These measures demonstrate proactive risk management and reduce the potential for losses (and promote safer conditions for tenants!).
Landlords can’t forget to review their policy terms and consult with an experienced agent when seeking out potential credits. Each company may have different eligibility criteria regarding these can’t-miss opportunities to reduce landlord insurance costs!
Why is it important to work with a specialist landlord insurance agency?
The insurance market is always evolving and recently insurance companies have made many changes to the availability of landlord insurance as well as the potential coverage components that are available. This can even differ by state so that the currently available investment property coverages are available in Arizona may vary by the carrier when you search for your policies.
Beyond the macro conditions which are important, the details of the coverage provided by different landlord insurance companies can vary significantly and each investor’s properties, operations, risk tolerance and more require careful analysis and planning. To provide one example of the interconnectivity and complexity involved, certain losses suffered by your rental property as a result of the negligent actions of tenants may not be covered by your standard landlord insurance policy.
Instead, you would need to make sure that your tenant obtains a tenant legal liability policy. Tenant legal liability insurance coverage protects your tenants from financial responsibility for damages or injuries that occur at your property. Typically, it covers costs related to bodily injury, property damage, and legal fees (settlements, attorneys, awards, etc.) resulting from incidents caused by the tenant’s negligence. The policy fills the gap left under the landlord insurance policy so that claims are made against the tenant legal liability policy — or as some people like to say it eliminates gothchas!
Can a landlord require a tenant to have renters insurance in Arizona?
Yes, although renters insurance is not required by law. Absent unusual circumstances, as long as there is an agreement requiring that tenants obtain renters insurance, then a landlord may require it.
You should always consult your lawyer and you can also visit the Arizona Department of Housing to review the rights and obligations of tenants and landlords.
Why should an Arizona landlord require tenants to obtain renters insurance?
Renters insurance is a key coverage to obtain as it protects not only the tenant but indirectly the landlord. Under standard landlord insurance policies, tenants’ contents like their extensive wardrobe and Restoration Hardware sofa are not covered.
Similarly, the liability protection provided under a landlord insurance policy will not extend to tenants.
Many Arizona renters insurance policies, however, will provide important coverage for the tenant’s personal property (so their clothing and furniture are protected!).
This allows a tenant to make a claim against his or her insurance policy as opposed to looking to the landlord for some form of reimbursement. As a result, renters insurance protects the interests of both parties and helps to maintain happiness between tenants and landlords (who would have thought this)!
What will be the cost of renters insurance in AZ for my tenants?
According to insurance.com, the average yearly premium for renters insurance in Arizona is $218.
This number can change quickly depending on individual factors like the overall and liability limits chosen as well as deductible amounts.
What factors determine landlord insurance costs in Arizona?
Several factors come into play when you calculate the cost of landlord insurance in virtually all states, including Arizona. These factors, however, can change or be weighted differently depending on the insurer and specific policy chosen, but plus or minus include:
1. Property type: If you insure a single-family rental it will likely be less expensive than insuring a multi-unit building or commercial property given the fewer risk exposures.
2. Location: Areas that statistically have more natural disasters (think hurricanes!) or with higher crime rates will often result in higher premiums or even less flexibility in the coverages offered.
3. Coverage limits: Perhaps a more obvious one, but higher coverage limits for structures will typically result in higher premiums given the overall exposure increase.
4. Deductible amount: Almost always, if you choose a higher deductible for your landlord insurance, it will lower your premium costs. The opposite is true if you decide to go with a higher deductible.
5. Claims history: Depending on the number, type, and loss amounts of your previous claims, your landlord insurance costs will often rise. In some cases, your loss history may limit the insurance carriers that will be available to provide coverage for your properties therefore it’s important to maintain safe and well-maintained properties (it may even result in a claims-free discount!).
6. Liability coverage needs: The coverage limit on the liability protection portion of your landlord insurance policy is a large exposure for your carrier. The higher the limit you choose for your liability coverage, the larger your insurance premiums will be (albeit this is a very important coverage to obtain, with higher limits to protect your investment property business!).
7. Rental income value: Insurers may take into account the monthly rent paid by your tenants since this affects their risk exposure when factoring in things like loss of rents coverage.
8. Security and safety measures: Having features such as 24-7 off-site monitored burglar alarms and fire systems, smoke detectors, fire extinguishers, exterior floodlights and secure deadbolt locks installed on your rental property can decrease landlord insurance costs due to lower risk exposures. Also, these measures are important for your tenants!
9. Dwelling age and condition: When insurance companies underwrite risk, they often assume that older properties might have more risks associated with them compared to newer ones and may charge higher premiums as a result. The age of your roof and plumbing, electrical and HVAC systems are important factors that are carefully reviewed by carriers.
10. Additional coverages needed: It’s perhaps another obvious one, but added coverages like flood insurance, workers compensation coverage or umbrella policies will each have their own added premium amounts. That said, obtaining multiple coverages through the same insurer (i.e. bundling) may lower your overall premium costs!
This is a quick but important list. All of these factors and others can vary among insurance companies so it’s really important to review your property needs with a licensed insurance agent to get this right!
Does the state of Arizona require landlords insurance for property owners?
No, there is not a direct requirement that landlord insurance be obtained in Arizona. However, this is a very important coverage to obtain to protect a landlord from significant loss. On top of the benefits to the investor, it may even be required by other parties like property managers and will almost universally be required by lenders.
For these reasons and others, it’s always important to work with your lawyer to understand your specific legal requirements.
Will my personal umbrella policy cover my rental properties in Scottsdale?
It depends on the specific terms of your personal umbrella policy. Many insurance companies will allow you to include coverage for up to a certain number of residential rental properties assuming the properties are included on a personal lines form or policy (as opposed to a commercial policy). If that hurdle is met, there are typically additional requirements that still apply like the financial rating of the underlying carrier (if it’s not the same company as your underlying insurer), minimum coverage limits, etc.
As you can see, this can get complicated (and the details matter!). If you have investment properties anywhere in Arizona or beyond, do not automatically assume that your personal umbrella policy will provide coverage (you may need a commercial umbrella policy or make other coverage changes). Too often insureds get this wrong.
You need to work with a licensed insurance agent to review your policies and structure your coverage carefully so that you can go back to running your real estate business profitably!
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Your 1-4 Unit Rental Property in Arizona May Not be Insured Accurately. Let’s Calculate it Right Now!
Replacement cost focuses on restoring an asset with similar features, while market value reflects the asset’s perceived worth in the current marketplace. In most cases, insurance companies use the replacement cost value (not market value) to determine the amount of coverage required for any structures under your landlord insurance policy.
It’s very important to keep in mind that these two valuations may not always align (and often don’t!).
Call Notable Risk for any Arizona landlord insurance needs: 888-897-4815
We can help with real estate investor insurance in Arizona, whether it’s one of the state’s 31,947 units comprising duplexes or some of the apartment buildings representing a portion of the 212,836 units contained in 20+ unit properties.