Arizona home values are up 30.7% in the past year. While this is great news for homeowners, it’s a double-edged sword. A recent news story revealed that 90% of the state’s homeowners are underinsured because of current housing values and the skyrocketing cost of building materials. If your home is lost and you need to rebuild, your current home insurance limits may not be enough to cover the full costs.
Leonard Ang, CEO of iPropertyManagement, estimates that home insurance in Arizona can start at around $100/month. However, it’s probably time to increase coverage limits to make up for higher prices. Finding the best homeowners insurance Arizona policy that’s both affordable and complete may take a little work, but it’s possible.
Insurance.com aims to help you find the right home insurance in Arizona.
- The average cost of Arizona homeowners insurance is $2,242, which is $902 less than the national average.
- Home insurance in Arizona is not mandatory but your mortgage lender will likely require it.
- Nationwide has the cheapest Arizona home insurance rates at $1,402 per year.
- The difference in average home insurance cost in Arizona between Green Valley (cheapest) and most expensive (Phoenix) is $1,114.
- 5 Best homeowners insurance companies in Arizona
- Average cost of homeowners insurance in Arizona
- Cheapest homeowners insurance companies in Arizona
- Arizona homeowners insurance rates by ZIP code and city
- Homeowners insurance rates in Arizona by company
- Homeowners insurance discounts in Arizona
- Frequently asked questions about Arizona homeowners insurance
- Homeowners insurance rates in Arizona by city
5 Best homeowners insurance companies in Arizona
Identifying the best homeowner insurance Arizona company isn’t easy. There are dozens of options to choose from. We did the legwork so you won’t have to. Insurance.com evaluated area carriers and scored them based on several factors:
- A.M. Best financial ratings for an insurer's ability to meet its financial obligations
- J.D. Powers annual study for customer satisfaction ratings
- Number of policies written by the carrier
- Insurance.com rate analysis based on Arizona homeowners insurance quotes
- Carrier policy offerings, discounts available, and special coverages
The five best Arizona homeowners insurance companies carriers (ordered by highest score first) are:
- AIG (American International Group): Best for fine homes
- State Farm: Best for customer service
- USAA: Best for military families
- American Family: Best for new homeowners
- Auto-Owners: Best for custom coverage options
| Company | Rank | Insurance.com score | Best for | A.M. Best rating | J.D. Power score |
|---|---|---|---|---|---|
| AIG | 1 | 4.65 | Fine homes | A | 830/1,000 |
| State Farm | 2 | 4.43 | Customer service | A++ | 835/1,000 |
| USAA | 3 | 4.41 | Military families | A++ | 882/1,000 |
| American Family | 4 | 3.6 | New homeowners | A | 831/1,000 |
| Auto-Owners | 5 | 3.38 | Custom coverage options | A++ | 831/1,000 |
AIG (American International Group): Best for fine homes
AIG Insurance offers home insurance in Arizona for owners of higher-end properties and estates. Custom homes are often harder to insure since they need special coverages and endorsements. A cookie-cutter HO-3 may not cut it. AIG recognizes this and offers home insurance Arizona coverage for homes in gated communities, on the coast or hillside.
Home insurance add-ons:
- Replacement cost
- Jewelry rider
- Additional living expenses
- Coverage limit inflation protection
Arizona home insurance discounts available: N/A
State Farm: Best for customer service
Building a relationship with your Arizona homeowners insurance agent can prove valuable. They can help you adjust coverage as your needs change, follow up on claims and help you save on coverage. State Farm scores high in J.D. Power’s customer satisfaction study for its strong combination of digital tools and local offices. There are State Farm offices in 64 Arizona cities, ready to help you with your home coverage.
*Editors note: USAA’s J.D Power’s rating topped the others. Since USAA is available only to military members, we did not select them as best for customer service overall.
Home insurance add-ons:
Homeowners insurance discounts available:
- Multi-policy
- Protective devices
- Roofing
USAA: Best for military families
USAA develops insurance products that cater to military personnel. Whether you’re active-duty, retired, a veteran or related to someone affiliated with the Armed Forces, you’ll have access to USAA home insurance. The carrier’s premiums are already competitively low. When you bundle home insurance with vehicle coverage, you could save up to 10%.
Home insurance add-ons:
- Earthquake
- Flood
- Home-sharing
Arizona homeowners insurance discounts available:
- Bundling
- Claims-free
- Protective devices
American Family: Best for new homeowners
New homeowners are typically on a tight budget when they get started and need all the savings they can find. American Family provides a list of discounts to help lower premiums. Many homeowners would appreciate getting a discount for security and smart home upgrades such as doorbell cameras and wireless alarms. Generational discounts can provide savings to family members insured with American Family, regardless of age.
Home insurance add-ons:
- Diminishing deductible
- Equipment breakdown
- Sump pump and water backup coverage
- Credit theft protection
- Matching siding
- Hidden water damage
Homeowners insurance discounts available:
- Multi-policy
- Protective devices
- Smart home
- Autopay
- Age of home
- Loyalty
- Generational
- Renovated home
Auto-Owners: Best for custom coverage options
If customizing your policy to cover your unique needs is essential, Auto-Owners home insurance has a solid list of coverage options. The Homeowners Plus package is one of the most popular — it includes several coverages you won’t find from most carriers such as appliance leaks, lock re-key and food spoilage. The issue is, the more add-ons you include, the higher your premiums. Fortunately, Auto-Owners’ discounts are just as comprehensive as its optional coverage.
Home insurance add-ons:
- Homeowners Plus package with several coverages, including appliance leaks, power failures and food spoilage
- Guaranteed replacement cost
- Personal property
- Identity theft
- Equipment breakdown
- Water backup
- Ordinance or law coverage
Homeowners insurance AZ discounts available:
- Multi-policy
- Paid in full
- Payment history
- Green
- Advance quote
- Protective devices
- Water shutoff system
- Mortgage-free
- Favorable loss history
Average cost of homeowners insurance in Arizona
Insurance.com found that average homeowners insurance premiums in Arizona are lower than the national average of $3,144 per year. Arizona homeowners insurance quotes come in at about $2,242 per year. However, your results may be different. Many factors affect home insurance in Arizona. Your policy limits, age of home, coverages, neighborhood, weather and the insurance company are just a few.
Although the number of variables in Arizona homeowners insurance quotes makes it hard to estimate premiums, the good news is, you could beat the average cost of coverage. If you don’t believe it, check out the cheapest homeowners insurance companies in Arizona below.
Cheapest homeowners insurance companies in Arizona
When the bottom line is the most important factor on the Arizona home insurance policy you choose, the right insurance company may be the most effective way to save on home insurance. The following companies offer the cheapest home insurance in Arizona for an annual 300,000/1,000/300,000 policy.
| Company | Avg. annual premium | Avg. monthly premium |
|---|---|---|
| Nationwide | $1,402 | $116.83 |
| Amco Insurance Co | $1,467 | $122.25 |
| USAA | $1,513 | $126.08 |
| Liberty Mutual | $1,617 | $134.75 |
| Garrison Prop & Casualty Insurance Co | $1,638 | $136.50 |
Arizona homeowners insurance rates by ZIP code and city
Your neighborhood could be affecting your insurance premiums. The reason may be crime rates, geographic terrain, vulnerability to natural disasters (such as living in a wildfire zone) and the number of claims made in a particular ZIP code.
| City | ZIP code | Avg. annual premium | |
|---|---|---|---|
| Highest rate | Phoenix | 85003 | $2,726 |
| Lowest rate | Green Valley | 85614 | $1,612 |
Check out Insurance.com’s homeowner’s insurance calculator to see rates based on location. Change up the calculator’s variables such as limits and deductible amount to compare how your insurance premiums can change.
HOME INSURANCE CALCULATOR
Average home insurance rates in CALIFORNIA
AVERAGE RATE: $797
Most & least expensive zip codes for homeowners insurance in California
Most Expensive
| Zip Code | City | Highest Rate |
|---|---|---|
| 92325 | Crestline | $1,450 |
| 92391 | Twin Peaks | $1,426 |
| 92321 | Cedar Glen | $1,425 |
| 92352 | Lake Arrowhead | $1,423 |
Least Expensive
| Zip Code | City | Lowest Rate |
|---|---|---|
| 94086 | Sunnyvale | $742 |
| 94085 | Sunnyvale | $743 |
| 94087 | Sunnyvale | $743 |
| 95051 | Santa Clara | $743 |
Homeowners insurance rates in Arizona by company
Insurance.com gathered rates by insurance carrier for Arizona homes based on $300,000/$1,000/$300,000 coverage. Here’s how they compare:
| Insurance company | Average annual premium |
|---|---|
| Travelers | $3,990 |
| USAA | $1,513 |
| Allstate | $1,889 |
| Garrison Property & Casualty Insurance Company | $1,638 |
| Safeco Ins Co Of Amer | $2,176 |
| Nationwide | $1,402 |
| Amco Ins Co | $1,467 |
| USAA | $1,513 |
| Liberty Mutual | $1,617 |
| Garrison Prop & Cas Ins Co | $1,638 |
Homeowners insurance rates in Arizona by coverage level
Compare how your annual premium can vary based on the level of coverage. In many cases, increasing your coverage significantly makes a minimal difference in your rate, affecting your monthly premium by just a few dollars per month.
| Coverage Set | Avg. Annual Premium |
|---|---|
| $200,000 with $1,000 deductible and $100,000 liability | $1,681 |
| $200,000 with $1,000 deductible and $300,000 liability | $1,705 |
| $300,000 with $1,000 deductible and $100,000 liability | $2,215 |
| $300,000 with $1,000 deductible and $300,000 liability | $2,242 |
| $400,000 with $1,000 deductible and $100,000 liability | $2,760 |
Homeowners insurance discounts in Arizona
Most insurance companies offer a sizable discount when you bundle home and auto insurance.
| Bundle | Avg. annual base premium | Avg. annual premium | Avg. dollar difference | Avg. percent diff |
|---|---|---|---|---|
| Home and auto | $1,862 | $1,584 | -$278 | -15% |
| Home and life | $1,803 | $1,755 | -$47 | -2% |
| Home and umbrella | $1,854 | $1,806 | -$48 | -3% |
Frequently asked questions about Arizona homeowners insurance
How much is homeowners insurance in Arizona?
The average cost of Arizona homeowners insurance is $2,242 per year. It’s $902 less than the national average. Insurance.com found you can beat the average by choosing the right carrier and discounts.
Are wildfires covered by home insurance?
Fires are covered by a standard home insurance policy. If you live in a high-risk area for fires, make sure you’re adequately covered or you’ll have to pay rebuild costs out-of-pocket if they exceed your policy’s limit.
Source:
Arizona home values are up to 30.7% in the past year.
90% of state's homeowners are uninsured because of current housing values and skyrocketing cost of building materials.
iPROPERTYMANAGEMENT- Home insurance in Arizona can start at around $100/month.
