You need enough liability coverage to protect yourself from lawsuits resulting from your possible negligence. Your lender may require you to cover the house for at least the amount of the mortgage. This may be too little or too much for your individual circumstances. You are not required to purchase insurance from the insurer recommended by your lender. Insurers may impose some conditions for replacement cost protection, to include your insuring the property to value.
Information is available to consumers from a number of sources.
These sources include any public library, the Arizona State Insurance Department, consumer groups, consumer publications, your insurance agent, or your insurance company. How You Can Reduce The Cost of Your Homeowner's Coverage B.1. Some insurance companies offer limited coverage or may not insure older homes. The number of fire hydrants and fire departments and the availability of water are just some factors which determine your area's fire protection class. If you reside in an area without fire protection, you will pay more for fire insurance.