It can be overwhelming to shop for home insurance, especially with so many companies in your state. Bankrate compared and analyzed dozens of insurance companies offering coverage in Arizona to help homeowners more easily and efficiently navigate this process. These top five best Arizona homeowners insurance companies offer broad coverage options and discounts to keep costs low. Based on our analysis, State Farm, Chubb, Auto-Owners, Nationwide and ASI Progressive may be worth considering when shopping for the best Arizona home insurance.
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Key takeaways
  • The average cost of homeowners insurance in Arizona is $1,216 per year for $250,000 in dwelling coverage.
  • Bankrate’s five best Arizona homeowners insurance companies include State Farm, Chubb, Auto-Owners, Nationwide and ASI Progressive.
  • Arizona homeowners may want to consider optional coverage or policies for water backup, floods and wildfires.

How Bankrate chose the best home insurance companies in Arizona

To find the best Arizona homeowners insurance companies, Bankrate analyzed and compared data provided by Quadrant Information Services. Rates are based on the same coverage limits and deductibles for 40-year-old homeowners with good credit and a clean claims history. Although these rates may differ from your personalized rates, they can be useful to gauge how much companies charge, on average, compared to competitors.

Bankrate also created the Bankrate Score to help homeowners determine which company best reflects their personal needs and desires for an insurance experience. The Bankrate Score, based on a five-point scale, factors in each carrier’s coverage options, financial strength ratings, online and mobile policy management tools, location availability and third-party customer satisfaction and experience scores.

Best home insurance companies in Arizona

The average cost of home insurance in Arizona is $1,216 per year for $250,000 in dwelling coverage. Based on data collected from Quadrant Information Services and the attributes reflected in the Bankrate Scores, we determined the top three Arizona homeowners insurance carriers are State Farm, Chubb and Auto-Owners. These data could help you see where a company might fit your needs and where it may fall short. Each company is different, and each homeowner has a unique circumstance, so reviewing several company metrics might help you determine which insurer could be worth a quote.

During your search for the best Arizona home insurance, you may want to compare quotes from three or more of these homeowners insurance companies:

Home insurance company Bankrate Score Average annual premium* J.D. Power score AM Best rating
State Farm 4.7 $1,593 835/1,000 A++ (Superior)
Chubb 4.4 $1,178 801/1,000 A++ (Superior)
Auto-Owners 4.3 $1,054 831/1,000 A++ (Superior)
Nationwide 4.1 $759 812/1,000 A+ (Superior)
ASI Progressive 3.7 $740 821/1,000 A+ (Superior)

*Average rates are for annual policies with $250,000 in dwelling coverage

State Farm

Best for customer satisfaction

Although State Farm is the most expensive option on our best homeowners insurance in Arizona list, it has a lot of perks to offer to homeowners. State Farm has over 19,000 agents nationwide, with local agents available in multiple Arizona cities offering personalized service to the local communities. State Farm may be a good provider for any Arizona homeowner looking for easy policy management. The company offers highly-rated mobile apps and online resources to help you file a claim or manage your policy. Discounts for multiple policies, home security systems and even roofing materials that can help you earn a lower rate.

Learn more: State Farm Insurance review

Chubb

Best for complimentary services

Chubb offers homeowners unique complimentary services that could be ideal for some homeowners, such as HomeScan, which can signal potential leaks and electrical hazards, and where more insulation may be needed for maximum home efficiency. The carrier also provides wildfire defense services and a risk consultant who will evaluate homes to ensure you have the coverage and protection you need. Chubb includes water backup coverage and replacement cost on contents in its standard home insurance policies without an additional cost, which is rare for an insurance carrier. Chubb works primarily with high-value homeowners, so it may not be the right fit for everyone. However, its rates are still below the Arizona average for the $250K dwelling coverage.

Learn more: Chubb Insurance Review

Auto-Owners

Best for optional coverages

Even with a more competitive rate than the Arizona average, Auto-Owners also has a robust list of discounts homeowners can use to keep their premiums low. Auto-Owners also offers an excellent collection of add-on coverage options, such as guaranteed home replacement cost, water backup of sewers or drains, special personal property, ordinance or law coverage and its signature Homeowners Plus program. However, Auto-Owners scored well below average in the 2021 J.D. Power U.S. Insurance Digital Experience Study, so homeowners who want to handle their policies online or on their smartphone might want to keep this in mind.

Learn more: Auto-Owners Insurance review

Nationwide

Best for property claims satisfaction

Although Nationwide has a lower Bankrate Score than other companies in our study, it still has an impressive amount of policy customizations available. If you want your roof to better withstand high winds, consider Nationwide’s Better Roof Replacement, which helps pay to rebuild your roof with stronger and safer materials after a covered claim. Nationwide also ranks in fifth in the 2022 J.D. Power Property Claims Satisfaction Study. However, with a number of optional coverages, Arizona homeowners could find their Nationwide policy quote is above-average for the Grand Canyon State.

Learn more: Nationwide Insurance Review

ASI Progressive

Best for affordable rates

ASI Progressive may be a good choice if you are looking for the cheapest rates for Arizona homeowners insurance. This carrier does not have much optional coverage but could be the right fit for homeowners who need basic coverage. Paying in full, getting an advanced quote and going paperless are some ways homeowners may save even more with ASI Progressive. While ASI Progressive ranked above average in the Insurance Digital Experience and Property Claims Satisfaction Studies, it ranked below average in the Home Insurance Study and has the lowest Bankrate Score in our best Arizona homeowners insurance list. On average, its rates are the most competitive in Arizona for $250K in dwelling coverage.

Learn more: ASI Progressive Insurance Review

How much is homeowners insurance in Arizona?

The average cost of home insurance in Arizona for $250,000 in dwelling coverage is $1,216 per year, less than the national average of $1,383 per year. Arizona’s average is surprisingly more expensive than neighboring Southwest states like California, at $1,084 per year, and Nevada and Utah, at $874 per year and $668 per year, respectively. However, 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. As you will see in the table below, rates can vary in certain cities.

Home insurance in Arizona

Every state has unique home insurance considerations. First, understanding the common causes of damage and the potential for natural disasters in Arizona and even in your ZIP code might help you take preventative measures to lessen the risk or extent of the damage. Once you understand what damage can be done to your home, you can choose appropriate coverage types from each insurance company for your financial protection.

Common causes of loss in Arizona

Arizona is a beautiful state but is also at risk for natural disasters. Some common causes of damage include:

  • Flooding: Most of Arizona is at a higher-than-average risk for flooding. The state’s typically dry climate means it is at a high risk for flash floods when heavy rains happen. The ground cannot absorb the moisture quickly enough, causing forceful flows of water.
  • Water damage: The same heavy rainfalls that can cause flash floods can also cause other water damage. Rain can find its way into your home via your roof, siding or windows and cause serious damage. Water damage can also happen when sewer and drain lines back up or pipes burst.
  • Wildfires: The state of Arizona is highly susceptible to wildfires. In 2021, the Insurance Information Institute estimated that 242,200 properties in Arizona were at-risk of damage caused by a wildfire, an increase from the 2019 projection of 237,900 properties.

Home insurance coverage options 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