may impact the cost of your homeowners’ policy: Type of Construction: Frame houses usually cost more to insure than brick. Age of House: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes. Local Fire Protection: The number of fire hydrants and fire departments and the availability of water are just some factors determining your area's fire protection class. If you reside in an area without fire p“But it’s a dry heat!” Who would ever believe Arizona would have mold problems severe enough to contribute to a insurance crisis in 2002 and 2003. Insurance companies in Arizona paid out over 50% of every dollar earned from Homeowners insurance premiums in 2002 and over 70% in 2003. There was a period when it looked as though a home that had a past water damage claim wouldn’t be insurable. Industry experts were pointing to the growing number of claims related to water damage and mold. Compounding the problem some insurance companies were refusing to write new homeowners policies in Arizona.

As of May 2006, 46 states and the District of Columbia had adopted a mold limitation for homeowners’ insurance coverage allowing insurers to exclude coverage for losses caused by mold and wet and/or dry rot, unless the condition results from another covered peril.

While the crisis has passed, some of the adjustments that were forced upon the market still exist. Insurance companies are scrutinizing property history and potential clients more and, of course, rates have gone up as well. Many homebuyers are not aware of an “insurance score” which is similar to a credit score. Insurance companies may use both to determine whether to insure someone and the price to charge.

If you’re going to have a loan on the home, your lender will require you to obtain some level of homeowners’ insurance coverage. Homeowners insurance does not include coverage for flood damage. But those living on a riverbank or near the ocean are not the only ones who warrant flood protection. If you live in a low-lying area (e.g., near an irrigation canal), you may be required to purchase flood insurance. Most companies that sell homeowners insurance also sell flood insurance, so try contacting your own insurance company for more information.

Other factors that may impact the cost of your homeowners’ policy: Type of Construction: Frame houses usually cost more to insure than brick. Age of House: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes. Local Fire Protection: The number of fire hydrants and fire departments and the availability of water are just some factors determining your area's fire protection class. If you reside in an area without fire pr

o water damage and mold. Compounding the problem some insurance companies were refusing to write new homeowners policies in Arizona.

As of May 2006, 46 states and the District of Columbia had adopted a mold limitation for homeowners’ insurance coverage allowing insurers to exclude coverage for losses caused by mold and wet and/or dry rot, unless the condition results from another covered peril.

While the crisis has passed, some of the adjustments that were forced upon the market still exist. Insurance companies are scrutinizing property history and potential clients more and, of course, rates have gone up as well. Many homebuyers are not aware of an “insurance score” which is similar to a credit score. Insurance companies may use both to determine whether to insure someone and the price to charge.

If you’re going to have a loan on the home, your lender will require you to obtain some level of homeowners’ insurance coverage. Homeowners insurance does not include coverage for flood damage. But those living on a riverbank or near the ocean are not the only ones who warrant flood protection. If you live in a low-lying area (e.g., near an irrigation canal), you may be required to purchase flood insurance. Most companies that sell homeowners insurance also sell flood insurance, so try contacting your own insurance company for more information.

Other factors that may impact the cost of your homeowners’ policy: Type of Construction: Frame houses usually cost more to insure than brick. Age of House: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes. Local Fire Protection: The number of fire hydrants and fire departments and the availability of water are just some factors determining your area's fire protection class. If you reside in an area without fire p

were forced upon the market still exist. Insurance companies are scrutinizing property history and potential clients more and, of course, rates have gone up as well. Many homebuyers are not aware of an “insurance score” which is similar to a credit score. Insurance companies may use both to determine whether to insure someone and the price to charge.

If you’re going to have a loan on the home, your lender will require you to obtain some level of homeowners’ insurance coverage. Homeowners insurance does not include coverage for flood damage. But those living on a riverbank or near the ocean are not the only ones who warrant flood protection. If you live in a low-lying area (e.g., near an irrigation canal), you may be required to purchase flood insurance. Most companies that sell homeowners insurance also sell flood insurance, so try contacting your own insurance company for more information.

Other factors that may impact the cost of your homeowners’ policy: Type of Construction: Frame houses usually cost more to insure than brick. Age of House: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes. Local Fire Protection: The number of fire hydrants and fire departments and the availability of water are just some factors determining your area's fire protection class. If you reside in an area without fire p

’ insurance coverage. Homeowners insurance does not include coverage for flood damage. But those living on a riverbank or near the ocean are not the only ones who warrant flood protection. If you live in a low-lying area (e.g., near an irrigation canal), you may be required to purchase flood insurance. Most companies that sell homeowners insurance also sell flood insurance, so try contacting your own insurance company for more information.

Other factors that may impact the cost of your homeowners’ policy: Type of Construction: Frame houses usually cost more to insure than brick. Age of House: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes. Local Fire Protection: The number of fire hydrants and fire departments and the availability of water are just some factors determining your area's fire protection class. If you reside in an area without fire p

may impact the cost of your homeowners’ policy: Type of Construction: Frame houses usually cost more to insure than brick. Age of House: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes. Local Fire Protection: The number of fire hydrants and fire departments and the availability of water are just some factors determining your area's fire protection class. If you reside in an area without fire protection, you will pay more for fire insurance.

The newest version of the Arizona Association of Realtors Residential Purchase Agreement now has a provision that gives the Buyer the right to inspect the insurance history of a property during a contractual “inspection period.” It also requires the Buyer satisfy himself as to the insurability of the property and rates during the same period.

The insurance market in Arizona is more competitive than its been in past years. There’s more competition to write policies and there is even a downward trend occurring in the cost of insurance premiums.

The following are tips for insurance savings for homeowners were found on the Arizona Department of Insurance website:

Tips for insurance savings for homeowners

• Shop around for the best coverage at the best rate.

• Don't drop your insurer before finding another company. Your lender requires the coverage and may assign insurance that is more costly.

• Look into consolidating your auto, home and life insurance with one carrier to cut rates.

• File claims only for major problems.

• Increase your deductible to reduce your premium. Put dollars saved from the lower premium into a savings account for home repairs.

• Get quotes from smaller insurers.

• Check into all discounts with an insurer, such as discounts for non-smokers or for installing an alarm system.

• Order a Comprehensive Loss Underwriting Exchange, or CLUE, report. It will list all claims on a house.

• Clean up your credit record. More insurers are using homeowners' credit history to set their rate.