The Best Arizona Home Insurance Companies of 2020

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Best Arizona Home Insurance Companies of 2020

Arizona’s unpredictable weather and broad range of geological settings, from arid plains to high, snow-covered mountains, make it essential that you have a solid home insurance policy if you live in the state. The homeowner rate is nearly 65%, and the average Arizona homeowners insurance policy costs only $803 annually, ranking it 46th among all fifty states.

Although Arizona only gets an average of 12 inches of rain each year, one common home insurance claim is flash flooding, especially in the desert areas in the southern part of the state. Fire and lightning are generally the most expensive claims, and wind and hail storms are also a common reason to make a claim on your policy. While most companies cover the latter, you’ll need to have a separate policy from the National Flood Insurance Program to cover you for flood damage.

Best home insurance companies in Arizona

To pick our best Arizona homeowners insurance companies, we looked at the companies that are writing the most policies in the state: their agents have the deepest knowledge of conditions that may impact your home. Next we checked respected ranking organizations including J.D. Power and Consumer Reports to discover what their research indicated about each company’s customer service. We reviewed each company’s website and got sample quotes for a $300,000 home in Phoenix.

Because every policy is different, depending on your circumstances, there’s no one best Arizona homeowners insurance company for everyone. According to J.D. Power and other consumer agencies, these are the top homeowners insurance companies in Arizona.

  • Allstate: Allstate has great ratings, along with a user-friendly website that makes it easy to get a quote and learn more about your options.
  • Farm Bureau: Not as big as some of our other choices, Farm Bureau nonetheless offers solid policies with a nice range of discounts, from a new roof discount to one for loyalty.
  • Farmers: Farmers offers creative endorsements such as an eco-rebuild that pays for you to go green and a nice range of discounts including new home, claims free and home safety.
  • Liberty Mutual: Liberty Mutual has over 100 years of experience and many coverage options, although some reviewers feel Liberty Mutual provides less than excellent customer service when you file a claim.
  • State Farm: State Farm gets a lot of love from rating organizations, including a stellar four power circles for overall customer satisfaction from J.D. Power.
J.D. Power Rating AM Best Rating Consumer Reports Rating Other insurance available
Allstate 3 / 5 A+ 82 Auto, motorcycle, off-road, renters, life, condo, boat, business
Farm Bureau NA NA NA Auto, life, farm/ranch, health, business
Farmers 3 / 5 A 82 Auto, life, business, renters, condo
Liberty Mutual 2 / 5 A 81 Renters, condo, mobile home, life, auto, motorcycle, small business
State Farm 4 / 5 A++ 85 Life, auto, condo, renters, small business, Medicare supplement, hospital income

 

Average homeowners insurance cost in Arizona

Because of the many choices you’ll make while planning your home insurance policy, your costs will be unique to you and your home. Initial quotes for a $300,000 home in Phoenix, with a $250,000 dwelling coverage, $187,500 in personal property coverage, and $100,000 in personal liability ranged from $101 to $134 a month.

The average premium paid in Arizona in 2017 was $825 annually, or $69 a month. Of course, factors such as the cost and value of the house, its location, the distance of your home from a fire station and the type of dog you own can impact your costs.

Arizona is at low risk from earthquakes except for the southwestern corner and north edge of the state. It does not get the hurricanes and storms that plague the seacoast states like Louisiana, which ranked first in the nation for premium costs.

You may want to consider additional flood coverage, due to the chance of flash floods following heavy monsoon rains. Your agent can tell you whether your home is likely to be impacted by flash flooding.

Sample Annual Premiums by State

State Rank Average annual premium
Louisiana 1 $1,967
Nebraska 11 $1,402
South Dakota 24 $1,125
California 32 $1,000
Arizona 46 $803
Oregon 51 $659

 

Home insurance coverage options in Arizona

The most common type of home insurance, called an HO-3 policy, is broken down into several categories:

  • Dwelling coverage: This covers the costs to repair or replace your home. To get this number, you need to know what the local building costs are per foot. Multiply that by the square footage of your home, and you’ll get a sense of how much it would cost you if you make a claim.
  • Personal property: This is the amount that you’ll be paid to replace damaged or destroyed property, from couches to cooking pans. It’s a good idea to do a home inventory, which you should keep in a safe place, so that you can estimate what your personal property costs would be.
  • Additional living expenses: This covers the costs for time spent away from your home because it is being repaired or rebuilt. It may include hotel fees and food.
  • Personal liability: This covers your legal fees if someone sues you following a mishap at your house. It also covers damage to others’ property as well. Typical examples include dog bites or slipping on an icy front walk.

There are optional coverages that you may add to your policy, such as flood insurance and coverage for structures that don’t touch your house, such as a detached garage. If you have a valuable collection of coins, furs or any other expensive item, talk to your agent about extra coverage for these belongings.

Common causes of home insurance losses in Arizona

Approximately 6% of insured homes make a claim each year, with the vast majority of those claims related to property damage. Some common claims include:

  • Fire and lightning: This is generally the most expensive claim a homeowner can make. The average amount of a fire-related claim is $68,000.
  • Wind and hail: This is the most common claim in the U.S., with the average claim coming in at $10,000. Homeowners insurance companies will often ask about the age and condition of your roof when you apply for a policy, and this peril is the reason why.
  • Water freezing and damage: For those in the colder areas of northern Arizona, frozen pipes can cause significant damage.
  • Flooding: Arizona residents should be aware that many of the state’s homes are set on dry, hard desert soil that does not absorb water during heavy rains, leading to flash floods. Regular insurance policies don’t cover flooding, but you can get an addition to your policy through the government’s National Flood Insurance Program.

Frequently asked questions

What is the cheapest Arizona homeowners insurance?

Getting the cheapest homeowners insurance in Arizona means you’ll have to do some homework. Get online quotes from our recommended companies, call several agents, be realistic about what you can afford and choose the maximum coverage possible for that amount.

How do I get homeowners insurance in Arizona?

A good first step is checking out Bankrate’s review of the best homeowners insurance companies of 2019. Then, armed with an appraisal and all the information you have about your home, make some phone calls to local agents who know your region and can talk to you about coverage for your unique circumstances.

How do I find out if I’m at risk of flood damage?

The Department of Homeland Security offers a FEMA Flood Map Service Center, where you can type in most addresses in the U.S. to see if you are in an area that is at risk of flooding.

Do I need hazard insurance on my Arizona homeowners insurance policy?

If you’ve got a regular HO-3 homeowners policy, you’ve already got hazard insurance. Also known as dwelling insurance, it’s what covers the cost of repairing or rebuilding your home in the case of a named peril.