Phone/Text - 928-428-6440

Before You Switch Your Insurance

The insurance market in Arizona is chaotic right now, and rates are climbing across almost every company in the state. As a result, many investors feel real pressure on their already thin cash-flow margins and start looking for savings anywhere they can—often by switching insurance carriers.

As a broker, the goal is to find value for clients: the coverage they actually need at the lowest reasonable price. Value is not just about the premium; it is about protecting the investment while keeping costs in line. In the past, simply moving to a new company often worked, but today things are different—“Not so fast, my friend!”

Why Switching Is Riskier Now

In addition to higher rates, insurance companies are tightening their underwriting standards. That means:

• More detailed questions and paperwork up front

• Stricter eligibility guidelines

• Limited coverage options

• More inspections and tougher inspection standards

Even after a policy is issued and paid for, carriers usually have about 30 days to decide whether they will keep or cancel it. If an inspection uncovers problems, the company can cancel the policy. Once that happens, finding another carrier can become very difficult. That is why it is critical to understand a few key issues before switching.

Five Things To Check Before You Move

1. Plumbing and electrical

If the property has galvanized plumbing or a fuse-based electrical system, most companies will decline it. These older systems are highly associated with costly water and fire losses. Galvanized or polybutylene pipes can fail suddenly, and fuses often signal that the electrical system has not been updated in decades. Upgrading these systems before shopping your insurance can make a huge difference.

2. Peeling paint and dry rot

Peeling or flaking exterior paint seems minor but sends a strong signal to underwriters about overall property maintenance. Sun damage and moisture can lead to dry rot, split fascia boards, and other issues. Many carriers now treat visible exterior neglect as a red flag and will simply walk away. A basic exterior tune-up and fresh paint can help the property pass inspection.

3. Overgrown trees and landscaping

Large, overgrown trees and shrubs raise concerns about roof damage and general upkeep. In a monsoon storm, branches can easily damage roofs, walls, or power lines. Carriers often assume that if the landscaping is not maintained, the rest of the property may be neglected as well. Trimming trees and cleaning up landscaping before an inspection can prevent automatic rejections.

4. Yard clutter and debris

Piles of wood, old vehicles, tools, and miscellaneous debris scattered around the yard are another major red flag. Even if the owner would never allow that at their own home, tenants might. Yard clutter increases fire risk, liability exposures, and pest issues. Clear, written lease terms and regular property checks can help, but before switching carriers, make sure the exterior is clean and orderly.

5. Roof age and condition

Roof issues are becoming one of the biggest reasons for non-renewals and cancellations. Many carriers now require that shingle roofs be replaced within the last 15 years. Some will reject a property if the roof appears older than that; others may limit claim payouts based on age and condition. Missing shingles, curling or warped shingles, and “granular loss” (loss of the protective grit) are all concerns. Even if a roof is rated for 30 years, carriers may still insist on replacement sooner than owners expect.

When Switching Might Make Sense

Insurance brokers want to write policies and help clients save money—but not at the cost of leaving them uninsured after a cancellation. Moving to a new company only to be dropped shortly after helps no one.

Before switching, make sure:

• Plumbing and electrical systems are updated and acceptable

• Exterior paint and trim are in good condition

• Trees and shrubs are trimmed and maintained

• Clutter and debris are removed from the yard

• The roof is in good condition and within carrier age guidelines

If those items are in order, shopping for a new company might be a smart move. If not, it may be wiser to address deferred maintenance first and consider switching only after the property is truly ready.

---