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The average cost of Arizona homeowners insurance is $2,242, which is $902 less than the national average.

Arizona Home Insurance

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.

KEY TAKEAWAYS
  • 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

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:

Best homeowners insurance AZ
CompanyRankInsurance.com scoreBest forA.M. Best ratingJ.D. Power score
AIG14.65Fine homesA830/1,000
State Farm24.43Customer serviceA++835/1,000
USAA34.41Military familiesA++882/1,000
American Family43.6New homeownersA831/1,000
Auto-Owners53.38Custom coverage optionsA++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.

Cheapest homeowners insurance companies in Arizona
CompanyAvg. annual premiumAvg. 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.

Arizona homeowners insurance rates by ZIP code
CityZIP codeAvg. annual premium
Highest ratePhoenix85003$2,726
Lowest rateGreen Valley85614$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

$200,000
$1,000
$100,000
94404 - Foster City
Dwelling $200,000, Deductible $1,000 and Liability $100,000.

AVERAGE RATE: $669

HIGHEST RATE: $1,029 LOWEST RATE: $443
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Most & least expensive zip codes for homeowners insurance in California

Most Expensive

Zip CodeCityHighest Rate
92561Mountain Center$1,031
90210Beverly Hills$1,029
90069Los Angeles$1,020
90046Los Angeles$1,011

Least Expensive

Zip CodeCityLowest Rate
93445Oceano$606
93117Goleta$607
93111Goleta$610
93433Grover Beach$615

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:

Rates for the best homeowners insurance companies in Arizona
Insurance companyAverage 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.

Average home insurance cost Arizona
Coverage SetAvg. 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.

Bundling home insurance discounts Arizona
BundleAvg. annual base premiumAvg. annual premiumAvg. dollar differenceAvg. 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.

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