The Cost of Homeowner's Insurance

The price is for a year's complete coverage including liability, flood, fire, storm, accidental damage of property on and off site (say if you take your laptop on a trip and drop it off a balcony, we had that covered), and theft of property from within a 2500 square foot home in a quiet neighborhood, not on a flood plane, and with smoke detectors in every room. Earthquake and hurricane coverage were also available but not really necessary in Phoenix. Rates vary based on the size and age of the home as well as total value of the goods insured and the mechanisms in place to protect them. Discounts were available for monitored security systems, safe neighborhoods, and homes that have recently been inspected and given a passing grade.

Seeing as we've never had to use the service, it's more for peace of mind than anything. If we're lucky, we'll never have to use it either, but it's cheap compared to the potential cost of a fire or burglary. So far the insurance company has been exceptionally easy to deal with and we've been without complaint. The company also has a reputation for treating its customers well so we're not too worried in that regard.

Insurance is a place where it pays to shop around. The exact same service from one company may cost half as much from another depending on their rate charts and risk assessments for your area. However, as this is (hopefully) going to be a rarely-used service, a company's reputation is more important than saving a dollar or twenty.

Big ticket items like art or expensive electronics setups may have to be inspected by the insurance company before insurance is issued. And be careful of getting insurance for things that just don't happen in your area. For example, you're unlikely to need volcano coverage in Kansas, or snow damage coverage in Phoenix.