Arizona Homeowners Insurance

 
Arizona Homeowners Insurance

Residents in Arizona pay an average of $68 per month or $810 per year in home insurance premiums. 


There are  almost 3 million homes in The Copper State, sixty-three percent of which are owner-occupied.

The average monthly cost for a homeowner with a mortgage in AZ is $1,354.

Residents in Arizona pay an average of $68 per month or $810 per year in home insurance premiums. 


There are  almost 3 million homes in The Copper State, sixty-three percent of which are owner-occupied.


The average monthly cost for a homeowner with a mortgage in AZ is $1,354.

Shop around and save.

Compare insurers to find the cheapest rates around.

 

Arizona Statistics*

​7,171,646

Population

$193,200

Average value of owner-occupied housing units

2,482,311

Households

​$53,510

Average household income

86.5%

High school grad or higher, percent of people age 25 years +

25 min

Average travel time to work

*Data from the U.S. Census Bureau


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Home insurance is considered a must-have for most homeowners, and the residents of Arizona have it lucky considering the low natural disaster rates compared to other gulf states like Florida, which have been destroyed in the past decades by floods, tornadoes and hurricanes. This has resulted in low home insurance rates in the Grand Canyon state. There can be minor disasters such as natural fires, but there is no large-scale real estate risk in most of the state to demand a high insurance rate.


However, some areas in Arizona are prone to floods. Last year, Phoenix had record-breaking rain, so preparing for that is essential. Thus, if you are planning to or already have a home in Arizona, it is essential to keep it covered.


Since rates vary within states as well, it can be beneficial to look around and compare home insurance prices before choosing one. Doing so may help you save money in the long term. 

Home insurance rates: AZ vs Nationwide


Arizona’s top homeowners insurance companies such as State Farm and Farmers make up most of the home insurance market in the state. The price variance is as high as 95% across various cities with rates going as low as $996 for places like Sedona and as high as $1,948 in areas around and within Benson. The average rate of $810 from a report by the Insurance Information Institute in 2015 (latest available data) for the state of Arizona translates to a monthly rate of $67 for homeowners.


On the other hand, homeowners all over the country pay $1,173 per year on average for home insurance, making for a monthly payment of about $98. Hence, most Arizonans can get cheaper insurance than the average American homeowner.

Average Arizona home insurance premiums

 20142015
Monthly average$64$68
Annual average$765$810
National annual average$1,132$1,173
Rank4445
Source: Insurance Information Institute

Our top homeowners insurance companies in Arizona


We arrived at our best homeowners GA insurance companies through reviewing homeowners insurance reviews and customer satisfaction. A company must display financial strength in order to be deemed trustworthy to be able to pay claims when time comes. First and foremost a company’s customer service rankings is looked at and also its financial stability. The various discounts rates and variety of coverage that customers can choose from are also considered. The following are our top homeowner insurance companies in the Peach State.


State Farm


State Farm claims the largest market share among homeowners insurance companies in not just Arizona but a handful of other states as well. It provides a wide range of policies, which include coverage for many types of homes including mobile homes, garages and farmhouses. The policies are customizable, so you can opt for the features you need without paying for coverage you do not need.


State Farm’s online website can be better. It lacks a good structure for guiding online visitors through its various features, which lack exposure on the website. Most visitors claim they have to resort to calling customer support to find out information about the company’s policies and offers. For instance, its HomeIndex Inventory keeps track of the coverage for your belongings and helps you quickly take action in an emergency, but the feature is not mentioned on the website.


Since floods are a risk in some areas such as Phoenix, the company also links you to the Premier Service Program, which allows you to contact contractors within your area for flood repair services to restore your home.


Farmers 


Farmers is the second most popular choice in Arizona mainly because of its variety of coverages, ranging from professional groups to specific groups such as military discounts.


The Farmers Smart Homeowners Policy is an extended policy, which includes the standard homeowners insurance on top of claim forgiveness (which removes surcharge if you go six or more years without a claim) and cosmetic damage coverage (which covers any cosmetic fixes if you file a functional damage claim).


There are individual options as well that you can add to the policy such as Identity Shield, which allows you to add identity theft coverage, giving assistance in credit monitoring and replacing identity documents.


The discounts are average, but if you prefer quantity of coverage options (and add-ons), Farmers will suit you.


A large chunk of customers does research about the best insurance offers through the internet, but the Farmers website does not fulfill its role. It is not updated when new policies or changes in current policies are introduced.


However, its customer support fares better with agents guiding you through the policies, explaining them and suggesting alternatives. JD Power ranked Farmers 3 (About average) out of 5 Power Circles in overall customer satisfaction.


Allstate


Allstate offers standard insurance for condos, mobile homes and apartments. Although it is known for its car insurances, the company offers good coverage for homes as well. One of its benefits is that it allows homeowners to research the best possible options using its online Premium Gauge. You can see how different parameters influence your annual payment. You can add or remove the parameters and get a premium you are satisfied with.


The features it offers as add-ons are water backup coverage (which pays you if your drain causes water damage), green improvement reimbursement (which helps cover costs of upgrading to energy-efficient items) and identity theft restoration (which reimburses legal fees and costs resulting from identity theft).


Another major feature is Allstate’s home sharing insurance, which works with rental services such as Airbnb. You receive insurance payment if the renters cause damage or steal your personal belongings. AM Best rated Allstate’s financial strength as A+ (Superior).


The company’s website provides information on all its offerings, and you get great customer support as compared to other top companies. It is also easy to get connected with an agent and get further guidance.


The bottom line


Even if Arizona does not get natural disasters regularly, getting a good homeowners insurance deal can prove to save a lot of money. On top of that, the rates and coverages you get with leading companies holding the market share are much less than other states. We believe these incentives are good enough to have your house covered for an emergency if you are a homeowner in Arizona or are planning to have a house here. 

Arizona home insurance companies: Market share and summary of ratings

RankInsurerMarket share %AM BestS&PJD Power
1State Farm18.3A++AA3
2Farmers13.7AA3
3Allstate9.0A+AA3
4USAA8.6A++AA+5
5Liberty Mutual8.4AA3
6American Family8.0ANR3
7Travelers3.7AA3
8Hartford2.6AA3
9CSAA2.3ANR3
10Chubb2.0A++AA3

NR: Not rated
Source: Insurance Information Institute

More on premiums and some AZ stats

When shopping for cheap Arizona home insurance, it is important to compare quotes from multiple providers. However it is also vital to pick a reliable insurance provider, as well as pick the right amount of coverage.


According to III, in 2015 (latest available data) The Grand Canyon State ranked 45th out of the 51 States in regards to average home insurance premiums. By comparison, Arizona is one the few states across the nation with relatively lower average premiums. You can choose from a wide range of discounts and options of coverage to lower the premiums remarkably. A credible Arizona home insurance agent will guide you in knowing the discounts that you qualify for. Furthermore, you ought to shop wisely for the best insurance companies before purchasing an insurance policy.


According to U.S. Census Bureau data, there are an estimated 3 million homes in 2017 in the state of Arizona. In the same year, there have been approximately 40,000 building permits issued in AZ. Are you too planning to build or buy your house in Arizona? The owner-occupied housing unit rate in Arizona is 63 percent. If you are planning to reside in Arizona, a homeowners insurance is useful in the event that a disaster strikes and incurs high costs in damages and repairs. However, a lot of homeowners are confused about which is the right insurance policy for them and they end up making some disastrous errors. To save you from such mishaps, the post below offers a brief on the common errors to avoid while looking for homeowners insurance.

4 mistakes to avoid when shopping for home insurance in AZ


1. Underinsuring the home

A lot of homeowners end up underinsuring their home. Most of the times, homeowners only stick to an amount which enables them to cover mortgage. But it constitutes just 80-90 percent of the total house value. Then, again some homeowners insure the amount which is equivalent to the present value of the home. However, this figure could be less compared to the rebuilding cost of the house.


To avoid the mistake, an estimate of the rebuilding cost of your house is needed. An insurance agent can calculate the cost but it’s better to go for an independent home-replacement price estimator. Your homeowners insurance should be close to the rebuilding cost of your home. If it is not, it’s time to think about enhancing or changing your coverage.


2. Not updating the insurance policy

Most of the homeowners insurance companies in Arizona tend to offer discounts for taking safety measures for your home. For example, you may receive handy discounts if you install burglar alarm or smoke detectors in your home. But to enjoy such discounts, you have to inform the company about your security measures. A lot of homeowners do not update their homeowners insurance policy after installing security features. As a result, they can’t take advantage of the discounts and keep on paying higher premiums.


Now, when you are moving in for the first time, a security alarm or fire detector could be a pricey investment. But you may invest in them over the course of time. And, if you do that, make sure to notify your insurance agent about the update.


3. Assuming homeowners insurance covers flood insurance

Arizona, especially Phoenix, is a flood-prone area. Thus, if you are staying in high-risk flooding areas in Arizona, it’s recommended that you get flood insurance to protect your property. But a lot of homeowners are under the misconception that homeowners insurance policy includes flood insurance. No, don’t stay under that misconception anymore. You will have to get the flood insurance separately. 


4. Going for Actual Cash Value coverage

Do not make the mistake of signing up with Actual Cash Value coverage while signing up with a homeowners insurance policy. Such a coverage will only reimburse on account of “book value”. So, if it’s an old item which has depreciated over time, you will be only paid for the depreciated value. The advice is to go for Replacement Cost coverage that will reimburse your item without considering the depreciation.


Types of House and Home policies


It's very vital to know what is protected in your Arizona home insurance policy. Here is a list of some of the house & home policies that you can find in an Arizona standard coverage:


Dwelling: also called home structure, it's a standard type of coverage for protecting the physical structure of your property such as the walls and roofs of the house.


Other structures: is a coverage for protecting the other outbuildings on your property besides the house, such as pool sheds and stand-alone garage among others.


Personal property: this is a standard type of coverage for protecting the personal belongings in your home in case they're stolen or damaged regardless of whether they were at home or away when they were stolen/damaged.


Liability protection: it offers you protection in case someone gets injured while on your property.


Guest medical protection: it protects you by catering for medical costs when a person gets injured while on your property.


Additional protection: standard Arizona homeowners insurance policies offer additional protection like reimbursing clients when they suffer covered losses and decide to stay in hotels.


You can enjoy great benefits from a House & Home policy when you discuss the available coverage options extensively with an insurance agent in Arizona before you commit and start paying any premiums. You can protect several things that are very valuable and treasurable to you such as camera equipment, coverage like data recovery and identity theft restoration. You can count on your Arizona insurance agent to help you understand the various coverage options available for your particular home. Our free online tool will help kickstart your search by providing you with a list of home insurance providers in your area.

For more assistance, please contact your local state department of insurance:

Arizona Department of Insurance

  • (800) 325-2548
  • consumers@azinsurance.gov

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