In Arizona, the affordability game of homeownership has a new angle, but it's not the usual culprits like home prices and interest rates. Hang on because insurance premiums have taken center stage, and getting insured is not as straightforward as it used to be!
Arizona homeowner’s insurance premiums have increased a whopping 50-100% this year. With the increasing costs of insurance and the escalating losses from natural disasters, there's never been a more crucial time to compare homeowners insurance quotes from various companies. This ensures you're not only getting the right amount of coverage for your home but also snagging the best deal in the process.
But why the sudden spike in rates?
Enter severe weather events, spurring a growing concern about wildfire across the northern part of the state and through the country. These events contribute significantly to the skyrocketing cost of insurance premiums. Add in the pinch of inflation, with elevating labor costs and the price of materials, and you've got the perfect storm for premium increases.
So, how does this impact potential buyers?
For many would-be homeowners, the struggle to secure insurance within their budget is real. The quest for affordable insurance has become a scramble, with some would- e homeowners even finding their dream home slipping through their fingers as increased rates take a toll on monthly payments.
Both buyers and sellers must proactively consider insurance costs right from the get-go of the home buying process. Addressing this issue upfront allows buyers to gauge their bottom line early in the contract period, avoiding last-minute surprises.
And here's where I come in!
By taking the proactive approach of shopping for insurance before submitting an offer, we can streamline the process, fortifying your offer and reducing the likelihood of it falling out of escrow. Let’s look out for your best interests—together!