Best Arizona Home Insurance 2022
As a homeowner in the Grand Canyon State, home insurance can protect your property and belongings from wildfires, monsoons and other perils. Arizona homeowners insurance costs $844.20 per year, on average, for a home with a $250,000 dwelling value. The cheapest rate we found is $621.52 per year.
The right insurance provider will serve your needs and budget while offering excellent service. SmartFinancial analyzed multiple carriers to bring you our recommendations for the best homeowners insurance in Arizona.
Best Home Insurance Companies in Arizona
When recommending home insurance companies in Arizona, SmartFinancial considered third-party scores, customer satisfaction and insurance rates. The premiums listed below the chart are based on quotes for a home with a $250,000 dwelling value.
Best all-around policy
Best for flexible coverage
Best for fire protection
Best for military families
*Companies were chosen based on reviews and JD Power scores out of 1,000.
Best All-Around Policy: American Family
American Family is the most affordable insurance policy on our list (excluding policies for military families) and offers a wide range of coverages. Costing $907.40 per year, homeowners enjoy coverage for their dwelling, personal property, personal liability and more. To reward their long-term customers, American Family offers loyalty and generation homeowners insurance discounts. You can enjoy a discount if you've been a customer for one year plus savings when your children insure their own homes with American Family.
Best for Flexible Coverage: Farmers
Homeowners insurance costs with Farmers is $1,571 per year, on average. Farmers makes it easy to shop for the right coverage levels for your budget with their tiered insurance products: Standard, Enhances and Premier. With their cheapest Standard package, homeowners can get the minimum level of coverage they need at an affordable price. Upgrading to the higher tiers unlocks additional perks, such as higher coverage limits and replacement cost coverage on personal belongings.
Discounts: Bundle with another policy; security devices; non-smoker
Best for Fire Protection: Chubb
Costing $1,177.74 per year, on average, a Chubb homeowners insurance policy is ideal if you're seeking additional fire protection. Chubb partners with Wildfire Defense Systems, Inc. to bring wildfire prevention and suppression resources and services to their policyholders. If your home is at immediate risk of burning, a team of certified fire professionals will be deployed to your home to help manage the fire. Chubb Wildfire Defense Services are offered at no additional cost but are not automatically available — you will need to enroll.
Discounts: Bundle with another policy; security features; new or renovated house
Best for Military Families: USAA
If you come from a military family — whether active or veteran — then USAA offers exceptional service and unique perks for active military members. USAA was also among the cheapest homeowners insurance companies on our list at $801.26 per year, on average. When insured through USAA, active military personnel get deductibles waived on military uniforms or equipment that is damaged from a covered peril while deployed.
Discounts: Bundle with auto insurance; home security systems; claims-free history
Cost of Homeowners Insurance in Arizona
The average cost of home insurance in Arizona is $844.20 per year for a home with a $250,000 dwelling value based on our research. Keep in mind this is only a benchmark you can use when comparing quotes. The actual cost will differ by homeowners insurance company, your home's dwelling value and the county you live in.
Average Cost by Insurance Company
We compiled quotes for Arizona homes with a $250,000 dwelling value from 15 insurance companies. Armed Forces Insurance Exchange offers the lowest premiums, costing $621.52 per year, on average, for military families. If you're not military-affiliated, then American Family offers affordable rates to most people at $907.40 per year, on average. The most expensive carrier on our list was Travelers, costing $3,305.03 per year, on average.
While insurance providers consider your home size, age, location and other factors, each uses different methods to calculate homeowners insurance rates. This can lead to a wide range of rates based on which insurance company you choose.
Average Annual Premium
Armed Forces Ins Exchange
Auto-Owners Insurance Co
Farm Bureau Mutual (IA Group)
Average Cost by Dwelling Value
SmartFinancial analyzed nearly 2,000 quotes for homes with dwelling values ranging from $150,000 to $450,000. Arizona homeowners can expect to pay $635.21 per year, on average, for a home with a $150,000 dwelling value and increases to $1,225.68 per year, for a home with a $450,000 dwelling value.
As you might expect, the higher your property's dwelling value, the more you pay in insurance premiums. This is often due to the higher rebuild costs associated with more expensive and larger homes.
Average Cost by County
Based on quote averages collected across 14 counties for a home with a $250,000 dwelling value, we found that La Paz was the most affordable county, costing $691.84 per year. The county with the highest homeowners insurance rates was Maricopa at $887.42 per year.
Note: This is only a sampling of the difference in homeowners insurance rates by location. A county outside the scope shown here could be well below or above the price range in our research.
Average Annual Premium
Homeowners Insurance in Arizona
A standard homeowners insurance policy protects your home and personal property against multiple perils, including wildfires, windstorms and more. However, a basic homeowners insurance policy generally does not cover earthquakes or floods. You would need to purchase a standalone policy or an insurance rider to gain those protections.
Below, we summarized the most common coverages plus extra home insurance coverage options to streamline your research.
The bulk of your insurance coverage, it pays for the cost to rebuild your home if it is damaged from a covered claim.
Similar to dwelling coverage except it covers damages to structures besides the actual structure you live in (e.g., fences, detached garages, sheds).
Covers your personal property when damaged or lost due to a covered peril. Coverage is typically paid at actual cash value (the item's value after depreciation) unless noted otherwise.
If you're sued by somebody who suffered bodily injury or property damage while on your property, liability protection pays for your legal fees.
Medical payments (for others)
Optional coverage that pays the medical bills of somebody who suffered injuries while on your property up to $5,000.
Pays for additional living expenses while your home is inaccessible after a covered claim (e.g., house repairs after a fire). Covered expenses include meals, hotel bills and more.
Flood damage (separate policy)
Covers flood-related damages. With a three- to four-month monsoon season in Arizona, flood coverage can be worth the additional cost.
Earthquake (separate policy)
Pays for damages to your home and property following an earthquake. While rare, earthquakes can happen in Arizona and you'd need to buy a separate policy to for coverage.
Pays for damages related to a wildfire. Fire damage is typically covered in most policies.
What Arizona Homeowners Need To Know
Homeowners in the Grand Canyon State should be mindful of two common perils: wildfires and flooding. Arizona is an exceptionally dry state throughout the year until flash floods hit during monsoon season.
In 2020, Arizona experienced 2,520 wildfires (80% were caused by humans) which resulted in 980,000 acres of state, federal and tribal lands burned throughout the state. Wildfires typically peak in northern Arizona at the end of June when weather conditions are hot and driest. Homes located near an area with a Wildland Urban Interface are especially vulnerable because fires spread more easily between structures and vegetation.
While typically included in most homeowners insurance policies, you should double-check with your home insurance provider if you're in a high-risk area.
Monsoon season in Arizona extends from mid-June to September, bringing Arizona homeowners some undesirable weather conditions:
Thunderstorms and lightning
While your home insurance may protect against hail and windstorms, floods are not covered under a standard homeowners insurance policy. A flood insurance policy must be purchased separately but can be worth it — just one inch of floodwater can cause $25,000 in damage according to the Dept. of Homeland Security.
If you live in a floodplain — an area that has a 1% probability of experiencing a flood in any given year — then your mortgage company may require you to buy a separate flood insurance policy. There may be some instances in which flood coverage is required, even outside a floodplain.
How To Find Home Insurance in Arizona
Choosing the right homeowners insurance company is essential in defending Arizona homeowners against natural disasters and other perils. Fortunately, Arizona residents can choose from big-name Arizona homeowners insurance companies — such as those listed in our top picks. You can also consider smaller, local or regional insurance providers, like Northwestern Arizona Regional Insurance Company.
Depending on where you live, your mortgage company may require you to buy flood insurance. The National Flood Insurance Program (NFIP) sells flood insurance throughout the country, including Arizona. Many of the insurance companies highlighted above are NFIP-approved flood insurance providers, including American Family, Allstate, Farmers, Liberty Mutual and USAA.
Stay Covered in The Grand Canyon State
Arizona is host to all kinds of weather extremes — from fires and droughts to monsoons and floods. As an Arizona homeowner, the right insurance policy can help absorb the costs of losses to your home and belongings following a natural disaster.
To help you find the right coverage at the right price, SmartFinancial partners with 200+ insurance carriers to bring you free home insurance and flood quotes for free. Just enter your zip code below and answer a few questions. You could save up to 40% in premiums for a better policy.
Get a Free Home Insurance Quote Online Now.
In Case You Missed It
Looking for Home Insurance?
Compare rates from dozens of companies in less than 3 minutes.