The predominant risk in Arizona is wildfire. It's normal to think of wildfire as being in forested areas, but desert areas may offer a significant risk as well. Insurance claims also result from monsoon storms that can bring high winds and hail that may result in damage to a structure. Additionally, water damage claims resulting from plumbing failures have been cited by insurers as causing a significant number of claims. The issue of risk to a property is not confined to a specific area. Insurers use a variety of data to determine risk and then price insurance coverage accordingly. 

While not covered by standard homeowners insurance, there is an increased risk of flooding in areas where a wildfire has burned. Flood is defined as water that enters the home from the outside at ground level and this type of coverage requires a separate policy that must be purchased in addition to homeowners insurance. Learn more about purchasing flood insurance.