Best homeowners insurance companies in Arizona for 2024

Compare the best homeowners insurance companies in Arizona

With the average cost of home insurance in Arizona standing at $2,163 annually, homeowners should prioritize finding a provider that delivers both value and comprehensive protection. To guide this search, we analyzed data sourced from Quadrant Information Services, focusing on Arizona's predominant insurance providers by market share. Our evaluation extended beyond mere numbers. We factored in AM Best financial strength ratings and customer satisfaction insights from J.D. Power's 2024 U.S. Home Insurance Study.

Furthermore, we considered the breadth of coverage options and the availability of discounts as a means to optimize affordability. We also scrutinized the user-friendliness of each company's digital platforms, including websites and mobile applications. Then, we assigned each insurer a Bankrate Score, ranging from 0.0 to 5.0, to assist Arizona homeowners in pinpointing the provider best aligned with their individual needs.

The top 5 home insurance companies in Arizona

Additional Arizona home insurance companies to consider

USAA

Allstate

American Family

How Bankrate chose the best home insurance companies in Arizona

Our choices for the best Arizona homeowners insurance companies were made based on multiple factors, which were combined with data from Quadrant Information services and resulted in a Bankrate Score that is designed to make purchasing your home insurance easy and efficient.

The Bankrate Score is a five-point scale that is based on our evaluation of multiple factors including average prices for Arizona policies and the number of endorsements and discounts each company offers. We also looked at third-party rankings for financial strength and customer service. Insurers with higher Bankrate Scores are more likely to be able to write you a solid policy for your property at a rate that is competitive in the market.

Cheapest home insurance companies in Arizona

While searching for affordable coverage, obtaining multiple home insurance quotes in Arizona can lead homeowners to discover the most cost-effective options. It's important to note that while price is a significant factor, ensuring the policy meets all your needs should remain a priority. As the home insurance market in Arizona continues to evolve, so does the competition among providers, making it even more important for homeowners to compare offerings.

How to get cheap Arizona home insurance

Naturally, no one wants to overpay for home insurance. Fortunately for Arizona homeowners, there are strategies available to help manage costs. Consider the following tactics when seeking affordable home insurance in Arizona:

1. Shop around: Don't settle on the first quote you receive for your coverage. You may be surprised at the range of options you'll have if you ask for quotes from several different insurers.
2. Work on your credit: Most states allow insurance companies to factor in your credit-based insurance score when calculating your rate. In turn, you are more likely to receive a favorable rate if you have a high credit score, since you have a documented history of paying your bills in full and on time. Lower scores may indicate difficulties with paying your bills, so insurers may charge more to cover their risk.
3. Bundle policies: Purchasing more than one policy from the same company may earn you a better rate for both policies. Consider bundling your auto insurance with homeowners insurance to take advantage of this.
4. Maintain your roof: An old or poorly maintained roof could be the cause of a costly claim. Insurers may lower your rate if your roof is on the newer side.
5. Increase your deductible: If you can afford it, raising your deductible is likely to lower your premium. You should typically only do this, however, if you can afford to pay the increased amount in the event of a claim.

Best home insurance discounts in Arizona

You may be able to lower the cost of your homeowners insurance policy by taking advantage of any discounts that apply to you. Almost all insurers offer at least a few discounts for homeowners. Here are a few that are common in Arizona:

How to save on home insurance policy renewals in Arizona

While the Arizona landscape is beautiful, it can present homeowners with unique challenges. Nevertheless, several strategies can be employed to potentially reduce premium costs upon policy renewal:

• Enhance energy efficiency: Arizona's scorching temperatures can lead to high energy bills during the summer months. Implementing energy-efficient home improvements, such as installing solar panels, energy-efficient windows or better insulation, can sometimes qualify homeowners for insurance discounts. Not only do you save on utilities, but you may also reduce your premium by showcasing a commitment to sustainable living and home maintenance.
• Upgrade home security: While Arizona cities like Phoenix have seen fluctuations in property crime rates, bolstering home security can be a prudent move. Installing security systems or surveillance cameras can often lead to discounts. Inform your insurance provider of any such enhancements, as they might adjust your rate favorably.
• Regularly review and adjust coverage: As home values and personal belongings change, it's vital to revisit your policy. Over-insuring can lead to higher premiums, while under-insuring can leave you vulnerable. Annual policy reviews ensure you're adequately covered without paying extra.
• Bundle policies: Many insurance companies in Arizona offer multiple policy types. By bundling home insurance with auto or life insurance, for instance, you might be eligible for significant discounts. It simplifies the insurance process and can lead to cost savings.

How much is home insurance in Arizona?

The average cost of home insurance in Arizona for $300,000 in dwelling coverage is $2,163 per year, 5 percent less than the national average of $2,304 per year. Arizona’s average is surprisingly more expensive than neighboring Southwest states like California, at $1,480 per year, and Nevada and Utah, at $1,097 per year and $1,246 per year, respectively.

Average home price and overall cost of materials affect total insurance costs and considerations in these neighboring states. Arizona’s widely varying weather may be a factor in the high cost of insurance. The risk of natural disasters like wildfires, landslides, earthquakes and water damage may be driving up the average rates in the state.

Arizona homeowners insurance rates by city

In Arizona (and other states), homeowners insurance rates aren't uniform across cities. Various factors, such as local weather patterns, crime rates and proximity to emergency services, can influence the pricing dynamics within different municipalities. As you explore the map and searchable data table below, you'll discover how these rates fluctuate across the diverse landscapes and communities of Arizona.

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Arizona?

In the sun-kissed state of Arizona, homeowners face a unique set of challenges that their insurance needs to address. While every policy can differ slightly, most standard homeowners insurance packages cover a certain range of perils. Knowing what's commonly covered can help you gauge if you might want to consider additional coverage specific to Arizona's climate and environmental conditions.

• Dwelling protection: This covers the physical structure of your home — the walls, roof and built-in appliances. It covers damage from various events, such as windstorms or hail.
• Personal property coverage: This aspect of your policy covers your belongings inside the home (like furniture, electronics and clothing) in the event of theft or damage.
• Liability protection: Should someone get injured on your property or if you or a family member causes damage to someone else's property, this part of the policy can help cover legal fees and damage costs.
• Medical payments coverage: If a guest gets injured on your premises, this can help cover their medical bills, irrespective of who was at fault.
• Additional living expenses: In the event that your home becomes uninhabitable due to a covered peril, this helps cover the extra costs you might incur for temporary housing and meals.

Additional home insurance coverage types in Arizona

When you buy home insurance in Arizona, your policy will likely have several standard coverage types like dwelling, personal property and liability. Beyond that, you can tailor your coverage to your needs with endorsements and separate policies. Arizona homeowners may want to consider adding the following coverage options for greater financial protection:

• Flood insurance: Flood damage is not covered by standard home insurance policies. Often, you will need to purchase a separate flood insurance policy, although a few companies may offer flood coverage as an endorsement. Because of Arizona’s high risk of flash floods, flood insurance may be well worth considering. This coverage may be optional, but if you live in a flood zone and have a mortgage, you could also be required to have a flood insurance policy.
• Water backup coverage: The same sudden, heavy rains that can lead to flash floods can also overwhelm your sewer and drain lines, causing them to back up into your house. Water backup coverage is a common endorsement and is designed to pay for the damages caused by water backing up into your home.
• Wildfire coverage: Homeowners insurance generally covers fire damage as a common peril, but if you live in an especially high-risk area, you may need a separate policy for higher limits or more extensive coverage against fire damage.
• Replacement cost coverage: Some carriers offer replacement cost as part of the standard coverage package, while others consider it an add-on coverage for which you pay extra. Consider including replacement cost on your dwelling and contents (if available), which will compensate for new building materials and belongings without factoring in depreciation or wear and tear after a covered loss.

Because Arizona is at high risk for weather-related damage, working with a licensed agent to choose coverage could be prudent. An agent who is familiar with the area may be able to help you decide what coverage offerings will most benefit you.

Common Arizona home insurance problems

Arizona homeowners often find that while the state boasts beautiful landscapes and sunsets, it presents its own set of challenges when it comes to securing home insurance. Several factors unique to the region can influence the insurance landscape, making it sometimes tricky for residents to find the ideal coverage.

• Climbing rates: Inflation impacts the cost of labor and building materials needed for home repairs or rebuilding. Coupled with supply chain disruptions, these rising costs can sometimes be reflected in insurance premiums.
• Environmental challenges: The state's arid climate can lead to certain natural events like dust storms or extreme heat waves, which might not always be covered by standard policies.
• Pest infestations: Arizona's warm climate can be a magnet for certain pests, such as termites or scorpions. Damage from these pests often isn't covered by standard home insurance, adding an extra layer of consideration for homeowners.
• Urban development: As cities like Phoenix continue to expand, there's an increased risk of urban-related perils, such as theft or vandalism, which might affect premiums and coverage options.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.