Arizona Homeowners Insurance

Homeowners Insurance in Arizona: Complete Consumer Guide

Ready to move to Arizona? Here are some interesting facts about your new home state. The state capital of Arizona is Phoenix. There are 22 national parks and monuments in Arizona. There are more than 100 wineries and 22 varieties of wine produced in Arizona. The Arizona Trail is 800 miles long and dedicated to hiking, mountain biking, horseback riding and cross-country skiing. Grand Falls and Havasu Falls, two of the top-rated waterfalls in the United States, are in Arizona. The state bird of Arizona is the cactus wren and the state flower of Arizona is the saguaro cactus. And finally, Grand Canyon National Park, one of the Seven Natural Wonders of the World, is located in Arizona.

Types of Homeowners Insurance policies in Arizona

What type of policy do you need? Not sure? Here is a look at the different types of home insurance policies.

HO-1 This insurance form is known as the “basic form.” It covers the 10 most common perils. But you won’t be able to find it everywhere. Some insurance companies do not offer HO-1 forms.

HO-2 This form is called a “broad form” and provides more limited coverage. But it still provides more coverage than a HO-1 basic form.

HO-3 This type of insurance form is the most popular and widely purchased. The HO-3 form provides coverage for named perils and personal property. With a HO-3 form, your insurance company will pay to repair or replace belongings damaged by 16 covered perils. These perils include falling objects, the weight of ice, snow or sleet on your home, water damage, fire, smoke, lightning, windstorm, hail, explosions and vandalism.

HO-6 This type of insurance form is for condominium units. This type of coverage is usually “walls-in” coverage and may protect a condo unit’s walls, ceilings and floors. The HO-6 insurance form also includes coverage for the condo owner’s belongings.

HO-8 This kind of insurance form is for older homes and covers 10 perils. The HO-8 form is paid on an actual cash value, which is the cost of the home items minus depreciation.

What factors affect rates on homeowners insurance in Arizona?

There are a number of factors that come into play when you are rated for a homeowners insurance policy. For example, the construction materials of your home are a big factor. So are other things like how much it will cost to rebuild the house or replace all your belongings. Having a swimming pool or a trampoline will affect your home insurance rate as well. Do you have dogs? You’re liable for dog bites and injuries caused by your pet. And this affects your home insurance premium. Your credit also plays a role in your homeowners insurance. Homeowners with good or excellent credit will pay lower premiums. Insurers rate based on so many factors and they discount for many factors too so it pays to comparison shop for home insurance.

Top 5 Disasters in the State of Arizona

Arizona federally declared Fire as the most common disaster with 67 counts since 1953, followed by Flood, Severe Storms, Biological, and Drought. Fire/Lightning is one of 16 perils covered on standard homeowners policies. Here are the top 5 federally declared disasters in the state of Arizona:

Rank Declaration Title Disaster Number
1 Fire 67
2 Flood 14
3 Severe Storms 12
4 Biological 2
5 Drought 1

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in Arizona?

The average cost of homeowners insurance in Arizona is $966 per year.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Arizona a safe state?

2019 Crime in Arizona Crime Number Crime Rate*
Property Crime 177,638 2,440.5
Burglary 28,699 394
Larceny-Theft 130,788 1,796.9

*Rate per 100,000 inhabitants

Safest Cities in Arizona by Property Crime*

  • Florence, AZ has a population of 26,385 with a Property Crime rate of 2.8 per 1k. The city average home value is approximately $239,830.
  • Prescott Valley, AZ has a population of 46,700 with a Property Crime rate of 10.1 per 1k. The average home value there is about $300,309.
  • Paradise Valley, AZ came in third as the safest city in the state of Arizona and has a population of 14,733 with a Property Crime rate of 10.9 per 1k. Its home value averaged at about $2,088,376.
  • Sahuarita, AZ has a population of 30,928 with a Property Crime rate of 11.2 per 1k. Its average home value is $250,311.
  • Maricopa, AZ has a population of 50,881 with a Property Crime rate of 11.9 per 1k. The city home value averaged $244,683.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Arizona

Top homeowners insurance companies in Arizona

State Farm is known for its good customer service, its fast claims payments and a user-friendly website. At State Farm, there also are a number of add-ons you can buy to supplement your policy. State Farm provides multiple policy discounts and discounts for fire, smoke and burglar alarms.

Auto Owners offers good service to its customers and a range of discounts including a senior discount, an under construction discount, a seasonal dwellings discount and an automatic backup generator discount. With Auto Owners, you can supplement your policy by insuring recreational vehicles such as boats and snowmobiles.

American Family offers an interactive website with calculators and worksheets that can help you choose the homeowners policy that you need. There are policy comparisons on the website as well. American Family offers a smart home discount, generational discount if your parents are policyholders and a renovated home discount.

Arizona Home Insurance FAQs

Why is home insurance less expensive in Arizona?

Arizona’s weather, which is mild for much of the year, is the reason home insurance is less expensive in Arizona.

What does Arizona home insurance cover?

A home insurance policy typically includes dwelling coverage, personal property coverage, coverage for other structures and liability protection.

Can homeowners insurance be transferred to the new owner?

No, homeowners insurance cannot be transferred to the new owner. The new owner will have to buy their own policy based on their personal information and coverage needs.

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