Best Homeowners Insurance in Arizona for 2021
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% percent, and the average cost of a homeowners insurance policy costs $1,189 annually for $250K dwelling coverage in Arizona.
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 where monsoons are common in the summer. Fire and lightning are generally the most expensive claims, and wind and hail storms are also a common reason to file a claim on your policy. While most companies cover the latter, you’ll need to buy a separate flood insurance 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 because their agents have the deepest knowledge of conditions that may impact your home. Next, we checked respected ranking organizations including J.D. Power & Associates to discover what research indicates about each company’s customer service. We also considered 2021 average rates.
According to J.D. Power and other consumer agencies, these are the best homeowners insurance in Arizona.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power customer satisfaction score|
Allstate has great ratings from organizations like J.D. Power and a user-friendly website that makes it easy to get a quote and learn more about your options. Allstate is a candidate for the best home insurance in Arizona with coverage options that include manufactured/mobile home insurance, flood coverage and HostAdvantage® protection. Discounts include welcome, loyalty, homebuyer, and senior discounts, in addition to extra savings for its Easy Pay Plan®.
Learn more: Allstate Insurance review
American Family offers solid coverage that includes dwelling coverage, other structures, property, loss of use and liability. You can customize your policy with optional coverage including equipment breakdown, sump pump and water backup and credit theft protection. There is also matching siding protection, a unique form of coverage rarely seen amongst other providers. The company is also known for good customer service and reasonable prices.
Learn more: American Family Insurance review
Despite the name, Auto-Owners writes some of the most robust homeowners policies in the business. Its reasonable prices get even better when you apply some of the available discounts — 12 are listed on the company’s website, including a mortgage-free discount and an automatic backup generator discount. Auto-Owners also offers an excellent collection of add-on coverages, 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.
Learn more: Auto-Owners Insurance review
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. Farmers is a popular option among Arizona homeowners who want the best discounts, offering savings for home security, nonsmoker and multi-policy discounts with extra savings for public safety officers and other professionals.
Learn more: Farmers Insurance review
State Farm gets a lot of love from rating organizations, including a stellar 878 points out of 1,000 for overall customer satisfaction from J.D. Power. State Farm is a good provider for any Arizona homeowner who is looking for easy policy management, with excellent mobile tools and online resources to help you file a claim or update your policy. There are also discounts for multiple policies, home security systems and even roofing.
Learn more: State Farm Insurance review
Average cost of 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. The average cost of home insurance in Arizona is $1,189 per year, which is less than the national average of $1,477 per year. It is more expensive than neighboring Southwest states like California, which costs $1,101 per year, and Nevada and Utah, which both average less than $850 per year.
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.
Home insurance considerations in Arizona
There are some basic types of home insurance that Arizona homeowners need or may want to include for added financial protection.
Arizona common causes of loss
Approximately six percent of insured homes make a claim each year, with the vast majority of those claims related to property damage. Some common claims include:
- Flooding: Flooding is a common issue in Arizona, especially because 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. From June to September, parts of the state are in Monsoon season, when much of the major flooding occurs. Regular insurance policies do not cover flooding, but you can get an addition to your policy through the government’s National Flood Insurance Program.
- Water damage and freezing: Arizona generally has a warm climate, but in some places, the temperature can fall below freezing. In those areas, frozen pipes can cause significant damage. The average claim for water damage and freezing costs about $10,849.
- Wildfires: The state of Arizona is susceptible to wildfires. As of 2019, it’s estimated that 237,900 properties in Arizona are at-risk of damage caused by a wildfire. That’s roughly 8 percent of the properties in the state. Fire-related claims are among the most expensive types of insurance claims, with an average cost of $79,785.
- Wind and hail: Arizona gets wind and hail storms. In fact, the state’s costliest weather event in history was due to a severe hail storm in 2010 that caused $2.8 billion in damages. In the U.S., hail-related damage is the most common home insurance claim, with an average cost of $11,200.
Common coverages 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.
- Personal property: This is the amount 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.
Frequently asked questions
What is the best Arizona homeowners insurance?
Because every policy is different, depending on your circumstances, there is no one best Arizona home insurance company for everyone. Getting the best 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 2021. 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 already have hazard insurance. Also known as dwelling insurance, it is what covers the cost of repairing or rebuilding your home in the case of a named peril.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2021 Quadrant Information Services data.