Lack of natural disasters keeps Arizona home insurance rates among lowest in US, report says

Posted at 9:05 AM, Nov 07, 2019
and last updated 2019-11-07 11:07:47-05

There's a big reason why more data center operators are setting up shop in the Valley, but it's not the typical reasons cited by businesses relocating to the region, such as business-friendly regulations or a growing workforce.

It's all about the weather.

New data from the National Association of Insurance Commissioners points out that nearly two-thirds of home insurance losses come from wind, hail, and water damage, and regions like the Midwest or the Gulf Coast experience these weather events on a regular basis, with increasing severity.

In its analysis of the NAIC data from 2007 through 2016, the most recent available, online insurance marketplace QuoteWizard, operated by LendingTree Inc., noted that when insurance companies take a loss from natural disaster claims, it’s homeowners who have to bear the brunt of those losses with higher home insurance rates.

Read more from the Phoenix Business Journal.