Arizona is prone to expensive wildfires that cause damage to land and homes on a regular basis, making homeowners insurance vitally important for residents.
The average cost of homeowners insurance in Arizona is $1,897 per year or $158 a month. This is right on par with the national average of $1,899.
But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Arizona.
Best homeowners insurance companies in Arizona
Of the companies we looked at, USAA had the lowest home insurance rate in Arizona, with an average yearly cost of $863. The next lowest rate in the state is $1,150 with American Family, which is $747 below the state average.
In addition to cost, it’s also important to look at a company’s record with customer satisfaction, and all five of the insurers we looked at have scored high ratings with J.D. Power.
Policygenius analyzed thousands of quotes from the 5 largest Arizona insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Arizona residents to find the best homeowners insurance in Arizona.
Company | Average yearly cost | J.D. Power Rating |
|---|---|---|
State Farm | $1,362 | 835 |
Farmers | $1,940 | 813 |
USAA | $863 | 882 |
American Family | $1,150 | 831 |
Allstate | $1,945 | 829 |
There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.
Pros
Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage
Get up to $1 million in personal liability coverage
Score discounts for bundling, installing security devices, and choosing a high deductible
File and track claims online, over the phone, in person, or through its mobile app
High customer satisfaction and financial strength ratings
Cons
No discounts for first-time homebuyers or going a year without a claim
Read our full State Farm home insurance review
Why State Farm tops our best list
While many homeowners insurance companies offer discounts for making your home more secure, State Farm goes a step further. Currently, it is offering customers a free Ting smart plug, which can monitor your home for electrical issues that could lead to fires or other damage. By safeguarding your home, you are less likely to file a costly home insurance claim.
How to get a quote
Online through State Farm
Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.
Pros
Several discounts and unique ways to save, including claim forgiveness and declining deductibles
3 flexible coverage packages with varying levels of protection for most coverage and budget needs
Offers extended and guaranteed replacement cost coverage options
File claims online, via text, on its mobile app, or by calling its claims center
Cons
Rates are typically more expensive
Below-average customer satisfaction ratings
No repair network to help you find a certified contractor or repair professional after filing a claim
Read our full Farmers home insurance review here
Why Farmers tops our best list
Farmers offers three levels of coverage so you can choose the product that best suits your needs. From an affordable standard home insurance policy to comprehensive coverage options for high-value homes, Farmers has a level of coverage and service that’s right for most income levels and home types.
How to get a quote
Online through Farmers
Why USAA tops our best list
USAA provides low rates and above-average customer and claim satisfaction ratings to military members and their families. With seven military bases in Arizona as well as nearly half a million veterans living in the state, USAA provides excellent service to the people who serve our country.
How to get a quote
Online through USAA
American Family's status as the 7th largest home insurance provider in the U.S. speaks to its popularity and reputation. Our fave perk? Its diminishing deductible program that lets you earn credits for every year you go without filing a claim.
Pros
Unique coverage add-ons, like matching siding insurance and hidden water damage coverage
Save up to 20% on home insurance and 29% on auto insurance for bundling the policies together
Earn a $100 credit toward your deductible for ever year you go without filing a claim
File claims online or on its mobile app — with 24/7 claims support
Cons
Doesn't offer extended or guaranteed replacement cost coverage
Above-average customer complaints according to the NAIC
Why American Family tops our best list
The MyAmFam app from American Family makes it easier to access your policy from anywhere. You can view your insurance cards, track your claims, and even set your auto-payments all from your phone.
How to get a quote
Online through American Family
Why Allstate tops our best list
When you can’t get in touch with Allstate, they come to you. Wildfires can cause damage to entire neighborhoods at a time, taking out power, phone, and internet lines. Allstate’s mobile catastrophe units come to areas affected by natural disasters so you can file a claim in person, rather than waiting for utilities to be restored.
How to get a quote
Online through Policygenius or Allstate
Cheapest homeowners insurance companies by city in Arizona
Looking at average home insurance costs for the 15 most popular insurers in Arizona, we found that the cheapest homeowners insurance company in the state is USAA. USAA’s low rates include a yearly average of $935 in Sedona, $1,002 in Scottsdale, $748 in Tucson, and $1,019 in Phoenix.
Home insurance rates fluctuate within the state due to general factors like the age, size, and value of the homes. Cities that are prone to wildfires and areas of higher crime will likely see more expensive rates. No matter where you live in Arizona, however, you are still likely to find affordable home insurance.
City | Company | Average yearly cost |
|---|---|---|
Avondale | USAA | $873 |
Buckeye | USAA | $789 |
Casa Grande | USAA | $939 |
Chandler | USAA | $826 |
Flagstaff | USAA | $917 |
Gilbert | USAA | $779 |
Glendale | USAA | $864 |
Goodyear | USAA | $766 |
Lake Havasu City | USAA | $672 |
Marana | Auto-Owners Insurance | $923 |
Maricopa | USAA | $813 |
Mesa | USAA | $894 |
Peoria | USAA | $863 |
Phoenix | USAA | $1,019 |
Queen Creek | USAA | $834 |
Scottsdale | USAA | $1,002 |
Surprise | USAA | $759 |
Tempe | USAA | $915 |
Tucson | USAA | $748 |
Yuma | USAA | $601 |
Shopping for homeowners insurance in Arizona
Shopping for homeowners insurance in Arizona doesn’t have to be complicated. Since the biggest risk to your home is likely wildfires, it’s important to know the replacement value of your house and make sure you have enough dwelling coverage in your policy to cover that amount. By knowing the coverage you need, you can make sure you are getting the policy you want for a price you can afford.
In this section, we break down the average annual home insurance rates in Arizona for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Arizona.
Arizona home insurance costs by coverage amounts
Dwelling coverage is the part of your home insurance that pays to repair or rebuild your home after a covered loss. To ensure you have enough coverage, the amount should be based on your home’s replacement cost.
In Arizona, more dwelling coverage means higher home insurance rates. A policy with $500,000 in coverage costs $2,855, while a policy with $100,000 in coverage only costs $998.
Dwelling coverage amount | Average yearly cost |
|---|---|
$100,000 | $998 |
$200,000 | $1,437 |
$300,000 | $1,897 |
$400,000 | $2,352 |
$500,000 | $2,855 |
Liability coverage is the part of your home insurance that pays to cover another party’s injuries or damage to their property. The amount of coverage you need should be based on the total value of your assets to make sure you don’t get stuck paying bills out of pocket.
Liability coverage amount | Average yearly cost |
|---|---|
$100,000 | $1,947 |
$200,000 | $1,714 |
$300,000 | $1,897 |
$400,000 | $1,019 |
$500,000 | $1,985 |
Arizona home insurance costs by deductible amount
A homeowners insurance deductible is the portion of your claim which you are responsible for paying. You will have to pay a deductible on every claim you file, so consider how much you can afford to pay out of pocket, keeping in mind that policies with lower deductibles will cost more than those with higher deductibles.
As seen in the table below, Arizona residents can save around $108 on home insurance by choosing a $2,000 deductible over the $500 option.
Deductible amount | Average yearly cost |
|---|---|
$500 | $2,161 |
$1,000 | $1,897 |
$2,000 | $2,053 |
Home insurance discounts in Arizona
Insurance companies incentivize customers to make their homes safer by offering discounts.
You can often save money on premiums by installing a security alarm, smoke detector, or deadbolt lock. By making your home more secure, you are also reducing costs for your insurer, since these devices reduce the chance you will need to file a claim.
While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Arizona with deadbolts, smoke alarms, or burglar alarms.
Discount | Average yearly cost |
|---|---|
Dead bolt | $1,896 |
Smoke alarm | $1,895 |
Burglar alarm | $1,860 |
Home insurance companies in Arizona for dog owners
Owners of certain dog breeds may see higher rates on homeowners insurance since those breeds have been found to cause more liability claims.
With an average rate of $863 per year, USAA has the cheapest home insurance rates in Arizona for a home with a dangerous dog breed, while Allstate’s average yearly premium of $1,945 is the highest.
Company | Average yearly cost |
|---|---|
USAA | $863 |
American Family | $1,160 |
State Farm | $1,362 |
Farmers | $1,940 |
Allstate | $1,945 |
Home insurance companies in Arizona for poor credit
Insurance companies have found that customers with higher credit scores will likely pay for small repairs out of pocket, while those with poor credit are more likely to have insurance foot the bill. Because of this, insurers will often charge higher rates to customers with low credit scores.
To ensure you are getting the fairest rate, be sure to shop around with different companies and compare policies.
With an average rate of $1,476 per year, USAA has the cheapest home insurance rates in Arizona for a homeowner with poor credit, while Allstate’s average yearly premium of $2,832 is the highest.
Company | Average yearly cost |
|---|---|
USAA | $1,476 |
American Family | $2,025 |
State Farm | $2,332 |
Farmers | $2,824 |
Allstate | $2,832 |
Home insurance companies in Arizona for pool owners
Having a pool on your property could result in higher insurance rates, given the risk of pool-related injuries and potential liability claims.
With an average rate of $863 per year, USAA has the cheapest home insurance rates for Arizona homes that have a swimming pool, while Allstate’s average yearly premium of $1,945 is the most expensive.
Company | Average yearly cost |
|---|---|
USAA | $863 |
American Family | $1,167 |
State Farm | $1,362 |
Farmers | $1,940 |
Allstate | $1,945 |
How to buy homeowners insurance in Arizona
Wildfires are a growing risk for homeowners throughout Arizona. To make sure your home is protected, and that you don’t get stuck with expensive home repair bills, it’s important to know what coverage you need.
Here are a few steps to follow when shopping for home insurance in Arizona:
Reach out to a licensed Policygenius agent. You may not be a home insurance expert, but our agents are. A Policygenius agent can answer all of your questions and help you shop for a new policy at no cost to you.
Figure out how much you can afford to pay for your deductible. With the growing likelihood of a wildfire damaging your home, you may find you need to file multiple claims throughout the year. Since you have to pay your deductible with each claim, it’s important to know how much you can afford.
Compare quotes from a Policygenius agent. Getting multiple quotes from different companies is the best way to find the right home insurance coverage at the best price. A Policygenius agent can compare quotes to determine which one is right for you.
Choose your policy, sign it, and pay your first premium. Once you’ve chosen a policy, a Policygenius agent can complete the necessary paperwork so all you have to do is sign.
Frequently asked questions
How much is home insurance in Arizona?
The average yearly cost of homeowners insurance in Arizona is $1,897 per year or $158 a month.
Is homeowners insurance cheaper in Arizona?
With a national average rate of $1,899, Arizona’s homeowners insurance rates are fairly even with the rest of the country.
Is home insurance mandatory in Arizona?
While homeowners insurance is not required in Arizona, most mortgage lenders do require borrowers to have an insurance policy.
How does the crime rate in my area affect my policy?
Since areas with more crime are likely to see increased amounts of home insurance claims, insurance companies will usually charge higher rates.
Methodology
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
