Best homeowners insurance in Arizona in 2021
Arizona’s unpredictable weather and broad range of geological settings, from arid plains to high, snow-covered mountains, make having a solid home insurance policy essential if you live in the state. The average cost of homeowners insurance in Arizona is $1,189 per year, or about $99 per month, according to Bankrate’s 2021 study of annual quoted premiums. According to our research, the best home insurance companies in Arizona include Allstate, American Family, Auto-Owners, Farmers and State Farm.
Homeowners have plenty of choices when it comes to Arizona homeowners insurance companies. Bankrate’s team of insurance editors analyzed the largest home insurance companies by market share in the state. Our research might help you find the best homeowners insurance in Arizona for your needs.
Best home insurance companies in Arizona
Our team of insurance experts started our Arizona home insurance research by obtaining current premium information from Quadrant Information Services. We then combined that information with a thorough review of each company’s coverage offerings, discounts, policy features and J.D. Power customer satisfaction scores. Taken together, these considerations could help you see where a company fits your needs and where it might fall short. Each company is different and each homeowner has a unique circumstance, so reviewing several metrics of a company might help you determine if it’s a good fit.
During your search for the best Arizona home insurance, you may want to get quotes from these companies:
|Home insurance company||Average annual premium for $250K dwelling coverage||J.D. Power customer satisfaction score|
Allstate has high ratings from organizations like J.D. Power and boasts 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 green reimbursement coverage, electronic data recovery and the HostAdvantage option for short-term rentals. Discounts include multi-policy, new homebuyer and home protective device, in addition to extra savings for the company’s Easy Pay Plan. However, Allstate’s average annual premium is slightly higher than Arizona’s average.
Learn more: Allstate Insurance review
American Family offers standard coverage that includes coverage for your dwelling, other structures, personal property, loss of use and liability. You can personalize your policy with optional coverage including equipment breakdown, sump pump and water backup and credit theft protection. There is also matching siding protection, which will pay up to $20,000 to replace undamaged siding after a covered loss so that everything matches. American Family did receive a below-industry-average customer satisfaction score in the 2020 J.D. Power Home Insurance Study, but has since improved in the 2021 survey. However, if you are looking for consistently highly-rated service, the company might not be the best fit.
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 available discounts are applied. There are 12 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 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 poorly in the 2021 J.D. Power U.S. Insurance Digital Experience Study, so homeowners who want to handle their policies online or on mobile might be left disappointed.
Learn more: Auto-Owners Insurance review
Farmers offers special endorsements, such as an eco-rebuild, which will pay the additional cost to repair or replace your damaged home with eco-friendly materials following a covered loss. Additional coverage options include identity theft and contents replacement cost coverage. Although Farmers’ premium is the highest on our list and higher than Arizona’s average premium, the company might still be a good fit for your needs, so getting a quote could be helpful. Every company’s rates will vary based on your individual rating factors, so your Farmers premium could be lower.
Learn more: Farmers Insurance review
State Farm is the largest homeowners insurance provider in Arizona, with about 17% of the market share. State Farm may be a good provider for any Arizona homeowner looking for easy policy management, as the company offers 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 materials. State Farm did get a below-average J.D. Power rating for claims service though, which could indicate that customers don’t have a smooth claims process.
Learn more: State Farm Insurance review
How much is homeowners insurance in Arizona?
The average cost of home insurance in Arizona is $1,189 per year, which is less than the national average of $1,312 per year. Arizona’s average is more expensive than neighboring Southwest states like California, which costs $1,014 per year, and Nevada and Utah, where a home insurance policy costs $822 per year and $647 per year, respectively.
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.
Home insurance in Arizona
Every state has unique considerations when it comes to home insurance. First, understanding the common causes of damage in Arizona, and even in your particular ZIP code, is important, as this knowledge might help you to take preventative measures to lessen the risk of damage. Then, once you understand what damage can be done to your home, you can choose appropriate coverage types.
Common causes of loss in Arizona
Arizona is a beautiful state, but is also at risk for numerous types of 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 do happen. The ground cannot absorb the moisture quickly enough, leading to forceful flows of water.
- Water damage: The same heavy rainfalls that can cause flash floods can also cause other types of 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 susceptible to wildfires. As of 2019, it is estimated that 237,900 properties in Arizona are at-risk of damage caused by a wildfire. And in 2020, the state saw over 2,500 wildfires that burned over 978,000 acres.
Now that you know the common causes of home damage in Arizona, you may feel more confident choosing coverage to protect your finances.
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 the following coverage options:
- 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 are offering flood coverage as an endorsement. Because of Arizona’s high risk of flash floods, flood insurance may be worth considering. This coverage may be optional, but if you live in a flood zone and have a mortgage, you’ll likely 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 automatically, but if you live in an especially high-risk area, you may need a separate policy.
Because Arizona is at a high risk for many kinds of weather-related damage, working with a licensed agent to choose coverage could be a prudent measure. An agent who is familiar with the area may be able to help you decide what coverage offerings are appropriate for you.
Frequently asked questions
What is the best Arizona homeowners insurance?
Because every policy and every homeowner is different, there is no one best Arizona home insurance company for everyone. To find the best home insurance for you, first determine what you are looking for. Do you want the lowest possible price, specific optional coverage types or high customer satisfaction scores? Knowing this information, you can get quotes from several companies to discover which carrier best fits your needs.
How do I get homeowners insurance in Arizona?
Start by getting quotes. You can do this online, by phone or in an agency. You will need your address, date of birth and possibly your Social Security number. Having some information about your home, like the year it was built, the age and material of your roof and information about custom features can be helpful. Once you have chosen a quote that you want to proceed with, you may need to sign an application and make a payment, unless your policy is billed to your mortgage escrow account.
How do I find out if I am at risk of flood damage?
The Department of Homeland Security offers a 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. But keep in mind that even if your specific area has a lower-than-average flood damage risk, flooding can still happen. According to the National Flood Insurance Program (NFIP), 99% of all U.S. counties have been affected by a flood.
Do I need hazard insurance on my Arizona homeowners insurance policy?
If you have a homeowners insurance policy, which is usually an HO-3 or HO-5 policy form, you already have hazard insurance. Hazard insurance simply refers to the fact that your policy protects your home — or your dwelling — from certain perils, also called hazards. If your mortgage company is requesting proof of your hazard insurance, you do not need to purchase anything additional. Instead, the mortgage company likely needs a copy of your home insurance declaration page.
Bankrate utilizes Quadrant Information Services to analyze 2021 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 will differ.