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In 2024, Phoenix experienced a record-breaking 113 consecutive days with temperatures above 100 degrees Fahrenheit. All of us Arizonans are hoping that record will remain untouched for many years to come, but one thing remains true, the heat is here to stay. While our team and clients the bliss associated with blasting their AC, it’s crucial to understand the unexpected insurance implications the extreme Arizona heat can create.
Here are some scenarios to consider regarding your property:
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Your AC unit breaks down, which requires costly repairs.
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Extreme heat cracks and warps your roof tiles, causing leaks.
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Pipes within your attic or walls burst from heat expansion, leading to water damage.
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Your landscape is severely damaged by drought, impacting its value and creating fire risks.
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Check out this Arizona drought map to see how your county fairs.
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Your solar panels lose efficiency or get damaged by prolonged heat.
When heat-related property damage occurs, insurance plays a critical role in providing security by offering a financial cushion that can cover repair and replacement costs. Homeowners’ insurance policies typically come in two main types: “named peril” and “open peril” (or “all-risk”) policies.
A “named peril” policy only covers damage caused by the specific perils explicitly listed in your policy documents. If the cause of damage isn’t on that list, it won’t be covered. For example, a named peril policy might list fire, lightning, and theft, but if your AC unit fails due to an electrical surge not specifically mentioned, it may not be covered.
An “open peril” policy, on the other hand, provides broader coverage. It covers damage from any cause unless that specific cause is explicitly excluded in the policy. This means if something happens to your home due to heat, and it’s not on the exclusion list, it’s generally covered, see other specific scenarios from this article published by The Insurance Journal. However, it’s crucial to note that even “all-risk” policies often exclude damage from gradual wear and tear, neglect, or certain events like floods and earthquakes, which usually require separate policies or endorsements.
At The Arizona Group, we understand that every homeowner’s needs are unique, especially in our unique climate. That’s why we take a personalized approach to helping you find the right insurance coverage. We’ll start by assessing your individual needs and explore different types of coverage available, including standard homeowners’ insurance and other tailored options. Our team will compare policies from top-rated insurers to find the best fit for your budget and goals. As your needs evolve, we’ll also provide ongoing support and guidance.
To learn more about your options for protecting your home from the Arizona heat, contact The Arizona Group today for a complimentary consultation.