Best homeowners insurance in Arizona for 2023

Compare the best homeowners insurance companies in Arizona

We used data provided by Quadrant Information Services to determine the average rates of Arizona's largest insurance companies by market share. But we didn't stop there. AM Best rankings are a good indication of financial strength, while J.D. Power's Insurance Study shows how well each company manages their interactions with their policyholders. 

We also looked for companies that offer a wide range of optional coverages and a robust list of discounts to keep costs down. Finally, we reviewed each company's website and mobile app for ease of use. Based on this data, we gave each company a Bankrate score, between 0.0 and 5.0, to help homeowners decide which one can best serve their needs.

The top five home insurance companies in Arizona

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.

How much is homeowners insurance in Arizona?

The average cost of home insurance in Arizona for $250,000 in dwelling coverage is $1,268 per year, less than the national average of $1,428 per year. Arizona’s average is surprisingly more expensive than neighboring Southwest states like California, at $1,225 per year, and Nevada and Utah, at $889 per year and $696 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.

How to find the best cheap home insurance in Arizona

No one wants to pay more than is necessary for their home insurance, of course, and Arizona homeowners may be pleased to know that there are tactics they can take to keep costs down. Here are a few strategies you can consider when looking for cheap 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 score: 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 rate. You should typically only do this, however, if you could afford to pay the increased amount in the event of a claim.

Common 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:

Types of home insurance 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.

Frequently asked questions