Arizona Landlord Insurance
Get a full analysis of Arizona landlord insurance costs, coverage, and companies.
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.
Find the Best Landlord Insurance Options in Arizona
Arizona has a large population of over 7 million people. Renters make up a significant portion of Arizona residents, occupying around nearly 34% of the housing units in the state.
If you are considering investing in a rental property or have a home that you want to rent out, you will want to ensure you are familiar with landlord insurance. It’s also important to understand that landlord insurance is the best way to protect your Arizona rental property from many problems that can occur.
A local independent insurance agent can help you get landlord insurance quotes from multiple insurance companies in Arizona so you can find the policy that best meets your needs and budget.
Best Landlord Insurance Companies in Arizona
Several insurance companies offer highly rated Arizona landlord insurance. The following are some of the best landlord insurance companies in Arizona. These companies provide a mix of valuable coverage offerings and competitive pricing.
- Progressive: Progressive is based in Ohio and offers personal insurance, including landlord insurance. Arizona residents can look to Progressive for most of their personal insurance needs.
- Travelers: Travelers offers highly rated landlord insurance in Arizona. It can meet your additional personal insurance needs with a full line of products, including homeowners, auto, boat, identity theft, umbrella, and other coverages.
- Safeco: Safeco has been protecting individuals and families since 1923. The company offers landlord insurance in Arizona, as well as a comprehensive range of other personal insurance policies. Working through independent agents, Safeco makes it easy to get the best mix of coverage and pricing.
- Stillwater Insurance Group: Stillwater is a national personal and commercial lines carrier with rock-solid financial stability. The company can help you with your landlord insurance needs in Arizona.
- Central Insurance Companies: Central Insurance Companies is a well-established carrier with more than a century’s worth of history in the insurance industry. It provides a wide range of coverage options, including landlord insurance, in 24 states.
An independent insurance agent in your area can help you learn more about these and other landlord insurance companies in Arizona. A local agent can help you get competitive quotes for the coverage that fits your needs.
What is Landlord Insurance?
Landlord insurance is similar to homeowners insurance in that it protects your property if you experience a fire, storm damage, or other type of property loss.
Landlord insurance differs from homeowners insurance because its protection is designed to protect landlords specifically. While it covers damage to the structure of a rental property, it does not cover the tenant's personal property. And while landlord insurance and homeowners insurance both provide liability coverage for the property owner, the liability coverage in landlord insurance is designed for the increased risk of lawsuits that landlords face.
Is Landlord Insurance Required in Arizona?
Residential property owners who rent out dwellings to tenants are not required by law to have landlord insurance. If you have a mortgage on your rental property, your lender will require you to purchase landlord insurance.
In some cases, your insurance company will require that the policy you purchase to protect your residential rental property is classified as landlord insurance, not homeowners insurance.
Here's how insurance companies typically treat rental properties (but this will vary by insurance company):
- If tenants occupy your property for 30 continuous days or longer, most insurance companies will require you to carry landlord insurance instead of homeowners insurance.
- If you have occasional tenants staying in your home for short-term rentals, your home insurance provider may allow you to add an endorsement to your policy that will provide you with suitable coverage.
- If you frequently rent out your property to short-term tenants, such as if you have it listed on Airbnb or VRBO, you may not be able to cover it with home insurance or landlord insurance. Instead, your property will be considered a business, and you will need to purchase commercial insurance coverage.
An independent insurance agent in your area can help you determine how to cover your particular rental property appropriately.
What Does Landlord Insurance Cover in Arizona?
Landlord insurance in Arizona provides several different types of coverage:
- Dwelling coverage: Covers the building itself for any physical damage caused by fire, lightning, wind, hail, ice, snow, or other covered perils.
- Other structures coverage: Helps pay to repair detached structures (e.g., a garage or shed) on your rental property if they're damaged by a covered loss.
- Personal property coverage: Covers the landlord's personal property used to service the rental (e.g., lawnmowers, snowblowers, maintenance equipment) left on site if it's damaged by a covered loss. (This does not cover your tenants' possessions.)
- Landlord liability coverage: Protects you if someone is injured on your property or if you are responsible for damaging someone else’s property. Landlord liability insurance covers the costs of any required medical treatment or property repairs. If you're sued, it also covers legal costs (e.g., attorney fees, court costs, and financial settlements or judgments).
- Loss of rental income: Coverage for your lost rental income if your tenants have to move out so you can make repairs to your building after a fire, storm, or some other covered peril. (This does not provide coverage if your tenant can't pay the rent because of a job loss or financial problem.)
A local independent insurance agent can help you determine whether you need additional forms of coverage for your rental property.
What Else Can Arizona Landlord Insurance Cover?
Some Arizona landlord insurance companies offer additional coverage options that you can include, such as:
- Non-occupied dwelling coverage: This provides coverage during the times that your rental property is vacant. Many insurance companies will not honor claims for damage that occurred in a home that had been vacant for more than 30 days unless the landlord carries this optional coverage.
- Building code coverage: This is most beneficial if you own an older property. Building codes may have changed since it was built, so if it is damaged, contractors doing repairs may identify additional renovations that are necessary to bring it up to code. This insurance can cover these unexpected extra costs.
- Rent guarantee insurance: This offers you some protection if a tenant fails to make rent payments. Your policy can cover the revenue losses for a set period of time, which is typically long enough for you to complete the eviction process. Rates are based mainly on how much you are charging in rent and the creditworthiness of your renters.
Rent guarantee insurance is sometimes called eviction insurance, as it may cover the cost of evictions. Just keep in mind that this coverage is very expensive, and you won't likely recoup all of your losses. You'll have to pay a deductible, and it will typically only cover a percentage of the monthly rent up to a set limit.
Landlords in Arizona should be aware of the various coverage options that are available, so you can be sure you are getting all the coverage you need to protect your investment and your income. A independent insurance agent can help with your landlord insurance in Arizona.
What's Not Covered by Landlord Insurance in Arizona?
As with all insurance policies, landlord insurance has some limitations. Your Arizona landlord insurance policy will not cover:
- Flood damage: This isn't covered even if the flood is the direct result of a covered storm. To be covered, you will need to supplement your landlord insurance policy with a flood insurance policy.
- Intentional damage caused by tenants: Sometimes, tenants act badly out of spite or in retaliation for an eviction notice. If they damage your property on purpose, most landlord insurance policies will not provide coverage. You will instead need to sue the tenant to get compensation.
- Normal wear and tear: Things break. Unless they broke because of a covered event, your landlord insurance policy will not cover them. If the refrigerator in your rental property suddenly stops working or if the hot water tank fails, you will need to cover repair or replacement costs on your own.
It is important to be aware of what your policy does and does not cover so that you do not face any unfortunate surprises later. When you work with an independent insurance agent in your area, your agent can help you go through your policy and understand when your coverage doesn’t apply.
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How Much Does Landlord Insurance Cost in Arizona?
On average, landlords in the U.S. spend about $1,083 a year on their landlord insurance policies. Another way to look at it: landlord insurance generally costs about 25% more than a standard homeowners insurance policy in your area. This is because rental properties are riskier than private dwellings, and therefore, landlords are more likely to file some type of insurance claim.
Landlord insurance costs in Arizona will vary based on your property and unique set of risk factors. In general, landlord insurance premiums are based on characteristics such as:
- The size and location of your property
- The type of building (e.g., single-family home, multi-family apartment building, etc.)
- The age and construction of your building
- The number of tenants occupying the property
- Your expected monthly rental revenue
- The weather and crime risks in your city
If your building has fire sprinklers, burglar alarms, gated access, or other security systems, you may be able to save some money on your landlord insurance premiums.
A local independent insurance agent can help you get multiple quotes for landlord insurance in Arizona. You can compare costs and coverage and choose the policy that offers the best fit for your needs and budget.
Arizona Landlord Insurance FAQs
Landlord insurance in Arizona provides several different types of coverage:
- Dwelling coverage: Covers the building itself for any physical damage caused by fire, lightning, wind, hail, ice, snow, or other covered perils.
- Other structures coverage: Helps pay to repair detached structures (e.g., a garage or shed) on your rental property if they're damaged by a covered loss.
- Personal property coverage: Covers the landlord's personal property used to service the rental (e.g., lawnmowers, snowblowers, maintenance equipment) left on site if it's damaged by a covered loss. (This does not cover your tenants' possessions.)
- Landlord liability coverage: Protects you if someone is injured on your property or if you are responsible for damaging someone else’s property.
- Loss of rental income: Coverage for your lost rental income if your tenants have to move out so you can make repairs to your building after a fire, storm, or some other covered peril.
Residential property owners are not required by law to have a landlord insurance policy to rent out their property. If you have a mortgage on your rental policy, your lender will require that you have landlord insurance.
There are also situations where an insurance company will require that the policy you purchase to protect your residential property be classified as landlord insurance, not homeowners insurance.
Whether you need landlord insurance or homeowners insurance is usually determined by how you use your property and the insurance company you select.
On average, landlords in the U.S. spend about $1,083 per year on their landlord insurance policies. Landlord insurance generally costs about 25% more than a standard homeowners insurance policy in your area.
Yes, landlords in Arizona can require their tenants to have renters insurance as a lease condition.
We recommend several top landlord insurance companies in Arizona, including Travelers, Progressive, Stillwater, Safeco, and Central Insurance Companies.
Your landlord insurance in Arizona covers damage caused by tenants in some circumstances.
Landlord insurance will usually cover sudden and accidental damage caused by a tenant. So, if a tenant accidentally causes a kitchen fire, any damage to walls, countertops, cabinets, and other covered parts of the building should be covered by your landlord insurance. Any fire damage to your tenants' furniture, cookware, or other possessions will not be covered by your landlord insurance. It will be covered by the tenant’s renters insurance if they have it.
If an appliance you own (e.g., the oven) is damaged in the same fire, it would likely be covered under the landlord insurance policy.
Landlord insurance in Arizona does not cover any intentional damage caused by a tenant. A standard landlord insurance policy won’t protect you if a tenant punches in a wall, kicks in a door, paints graffiti, or otherwise intentionally damages some part of a unit.
Standard landlord insurance in Arizona typically won't cover the cost of evictions. However, eviction insurance, or rent guarantee insurance, can be purchased separately from some insurance companies. It will cover some of the costs involved in an eviction, as well as some of the rent you miss out on during the eviction process.
No, landlord insurance does not cover floods in Arizona. But you can purchase flood insurance designed for landlords from the National Flood Insurance Program and some private carriers.
A local independent insurance agent can help you find a competitively priced landlord insurance policy that meets your needs. Independent agents aren’t tied down to one carrier. They can get quotes from multiple insurance companies so you can choose the Arizona landlord insurance policy that best fits your needs and budget.
Contact an independent agent in your area today for a free, no-obligation consultation.
https://www.census.gov/quickfacts/fact/table/AZ,US/PST045223
https://www.iii.org/article/coverage-for-renting-out-your-home