Best cheap homeowners insurance in Phoenix

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The home ownership rate in Phoenix is 54%. Although homeowners insurance coverage in Phoenix is not mandatory, homeowners who are paying a mortgage are usually required by lenders to have a valid home insurance policy. Average home insurance rates in Phoenix are $1,397 per year for a $250,000 dwelling.

Phoenix’s average rates are only slightly higher than the national average of $1,312. However, there are lower rates available — if you know how to find cheap home insurance providers in Phoenix. To save you time, we collected quotes from the best home insurance companies. After comparing home insurance options and carrier ratings from customers and studies, we narrowed the list down to five companies.

Best cheap home insurance companies Phoenix

The following carriers are some of the country’s best and largest. They made the list for best cheap home insurance companies in Phoenix for having the lowest rates and high customer ratings in the J.D. Power home insurance study.

Home Insurance Company Average Annual Premium for $250K Liability JD Power Score
USAA* $678 889/1,000
Progressive $772 797/1,000
Nationwide $777 808/1,000
AAA $891 825/1,000
State Farm $1,058 829/1,000

*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions

USAA

USAA is the top carrier for price and customer service. However, USAA is a member-based provider. Although membership is free, only individuals who are affiliated with the military or a close relative can qualify. If you are able to access a USAA HO-3, you will get low-cost coverage that includes replacement cost coverage for free. Most carriers charge for the option, which upgrades your policy by paying for new versions of the items you are replacing.

Progressive

Progressive offers easy quote comparisons when you use the Homequote Explorer tool. A standard policy covers basic perils such as theft, fire and lightning. You can add water backup coverage that includes cleanup and repairs if your sump pump or sewer backs up and floods your home. Personal injury coverage can expand on your policy’s liability limits by adding reimbursement for legal fees and damages from situations such as wrongful eviction, false arrest or slander.

Nationwide

Nationwide’s home insurance rates are $777 per year (on average) for Phoenix homeowners. That is half the average cost for coverage and one of the main reasons Nationwide makes our list of the cheapest home insurance companies in Phoenix. Nationwide has a series of options that you may not find elsewhere. Living in a gated community or in a recently-renovated home makes you eligible for a discount on your policy.

AAA

Many people may not realize that AAA offers home insurance to Phoenix residents — even if you are not a club member. However, AAA members have access to more than just travel discounts and roadside assistance. They will receive an exclusive discount of 5% on homeowners insurance. You may be able to earn additional discounts when you bundle your home and auto policies or your sign up for AAA SmartHome. It is AAA’s wireless version of a security system that can be accessed, monitored and controlled through the mobile app.

State Farm

State Farm receives high ratings from customers in the J.D. Power home insurance study. One of the factors that could lead to higher customer satisfaction is the personalized service available. State Farm has local offices and agents throughout Phoenix, ready to help you expedite a claim or ensure you have the right amount of coverage. There are 70 State Farm locations in the city.

Phoenix home insurance recommendations

Although home insurance is not required by the state of Arizona, having coverage can protect what could be your most valuable asset — your home. An HO-3 policy includes coverage for your home’s structure, your personal property, liability against lawsuits and injuries that occur in your home and living expenses if you need to move out temporarily for repairs or rebuilding. There are some additional coverages you may want to add:

  • Green rebuild: Allows you to replace items or building materials with eco-friendly versions.
  • Scheduled personal property: Your home insurance policy limits how much it will pay for individual items. If you have items such as jewelry or watches worth thousands of dollars, a scheduled personal property rider is needed to cover the items for their full value.
  • Business coverage: Home business owners and remote workers may want to add coverage for their work-related equipment and inventory.

Home insurance discounts in Phoenix

Considering that the average homeowners policy in Phoenix is roughly $1,400 per year, saving as little as 10% can make a difference. Home insurance companies have a variety of discounts available to current and prospective customers. They include:

  • Bundling/multiline: Most Phoenix homeowners have at least one vehicle. Buying car and home coverage from the same provider could save you money on both.
  • Payment: Enrolling in automatic payments can save you money and reduce the risk of a lapse in coverage from forgetting to make your payments.
  • Protective devices: Adding a home security system, smoke detectors or other devices that monitor your home could lower your premiums.

For the largest impact to your home insurance bill, bundle coverages and install protective devices. Protective devices such as carbon monoxide detectors or security cameras will also safeguard your property against damages or loss.

Frequently asked questions

What is the best home insurance company?

The best home insurance company in Phoenix depends on your needs. You will want to consider your needs and desired coverages. You will then want to compare carriers by looking at available coverages, available discounts, customer satisfaction scores, financial strength and more.

How much does home insurance in Phoenix cost?

Average home insurance Phoenix rates are $1,397 per year for a $250K dwelling. However, Bankrate found that some carriers have annual rates of $678 to $1,058.

How much home insurance do I need in Phoenix?

Consulting with your carrier or agent to set the right amount of home insurance could save you time and guesswork. The current market value of your home may not be the correct figure — the cost to rebuild your home may not necessarily reflect in current home prices.

Methodology

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 2020 Quadrant Information Services data.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance, real estate and international business journalist. Besides Bankrate.com, her work has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and SimpleDollar.com. She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women’s NGOs about small business development.
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