Best and Cheapest Home Insurance Companies in Arizona
State Farm has Arizona's cheapest home insurance at an average rate of $916 per year.
Compare Home Insurance Quotes from Providers in Arizona
Home insurance in Arizona costs an average $1,614 per year, but cost is just one of several major factors that determine the best home insurance policy. We collected thousands of quotes across hundreds of ZIP codes from Arizona's top home insurance companies to determine how they compared in terms of cost, customer service, reliability and coverage benefits.
Best cheap home insurance in Arizona
Cheapest home insurance quotes in Arizona
State Farm has the cheapest home insurance rates in Arizona, at $916 per year on average.
Compare Home Insurance Quotes in Arizona
The average annual rate for home insurance in Arizona is $1,614. Rates in Arizona overall are 6.5% higher than the national average of $1,516.
Cheap annual home insurance in Arizona
Company | Annual rate | |
|---|---|---|
| State Farm | $916 |
| USAA | $973 |
| Nationwide | $1,007 |
| Progressive | $1,060 |
| Farm Bureau | $1,064 |
Best home insurance in Arizona for most people: State Farm
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Editor rating
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Annual rate
$916 ?
Pros and cons
With a 34% savings compared to the statewide average, State Farm is our top all-around insurance choice for most Arizona homeowners.
State Farm offers an average annual rate under $1,000 and includes all of the standard coverages you'd expect in a home insurance policy, including personal property and liability protection.
State Farm also has an excellent customer service rating, with customers filing complaints at a much lower rate than average compared to other home insurance companies. With the benefits that come from having a national insurer, along with State Farm's dedication to deliver great cost, flexibility and service, it's a safe choice for most homeowners.
While State Farm does not offer many discounts, its affordable rates for basic coverage leave room in the budget if you want to add any extra coverage for:
- Water damage due to sewer or drain backup
- Mechanical or electrical failure in home equipment
- Service line failure or accidental breakage
- Replacement cost coverage to replace damaged property with new items
Best customer service for home insurance in Arizona: Farm Bureau
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Editor rating
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Annual rate
$1,064 ?
Pros and cons
When it comes to customer service, Farm Bureau is the top company in Arizona. If you need to file a claim, you'll contact your own agent directly. This makes the claims process more convenient, faster and easier. You can also file a single claim when you bundle insurance and a storm or other accident damages your car, home or other property.
Farm Bureau does not offer many specialized coverage options or discounts, but for a small cost you can add umbrella coverage for extra liability protection, as well as earthquake or flood insurance. If you value personalized service, reasonable rates and general coverage, Farm Bureau is an excellent choice.
Best for premium home insurance coverage: Chubb
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Editor rating
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Annual rate
$1,117 ?
Pros and cons
Chubb offers high-priced policies that come with some unique benefits, including complimentary home appraisal, risk consulting and a cash settlement option if you prefer to walk away from the total loss of your home.
The most important of Chubb's distinguishing advantages is its extended replacement cost coverage, which pays for your home to be repaired or rebuilt to its original state, even if the costs exceed your original policy limit. This coverage also protects you against the expense of upgrading to conform with new building codes in your area.
For homeowners in Arizona who worry about wildfires, another important feature from Chubb is its Wildfire Defense Services (WDS) program. WDS offers hazard assessment and active defense using private fire professionals if a wildfire threatens your property. This service is free for any Chubb home insurance customer to enroll in. However, due to the added coverage and tailored service, many customers looking for a general home insurance plan might find the monthly costs of Chubb too high.
Best home insurance for military families: USAA
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Editor rating
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Annual rate
$973 ?
Pros and cons
Most homeowners with ties to the military can get top-flight customized coverage through USAA. Standard policies offered through USAA provide replacement cost coverage, protecting the value of your property even if the price has gone down over time.
USAA's strong reputation is backed by several metrics. In Arizona, USAA has a NAIC Complaint Index of 0.14, which means its customers file complaints roughly one-sixth as often as similar insurers.
USAA is also affordable compared to the competition, with an average rate of $973 per year in Arizona. This pays for replacement cost coverage, as well as unique military benefits like a deductible waiver for your uniform while on active duty and personal property protection that extends to war zones. The company has an outstanding reputation as a financial services company for members of the armed forces and their families; however, one of the main drawbacks of USAA is that it is only offered to military personnel or their families, so it is not available to most civilians.
Arizona home insurance rates by city
Our analysis of Arizona home insurance costs also gave us insight on the difference of price by location. The table below shows the average annual cost for homeowners in each city, as well as how that compares to the statewide average of $1,614. Phoenix, the largest city in Arizona, has an average rate of $1,798 per year, 11% above the state average. Tucson, the second-largest city, has rates that are 6% cheaper than the state average.
The cheapest town in Arizona for home insurance is Avenue B and C at $1314 per year, while Bapchule is most expensive at $2,253 per year.
City | Average annual rate | Percent from average |
|---|---|---|
| Aguila | $2,159 | 34% |
| Ajo | $1,562 | -3% |
| Ak-Chin Village | $1,608 | 0% |
| Alpine | $1,634 | 1% |
| Amado | $1,523 | -6% |
Best-rated home insurance companies in Arizona
Farm Bureau and USAA have the best customer service for home insurance in Arizona
Both Farm Bureau and USAA score top marks from our editors for combining cheap quotes, good coverage options and highly rated customer support.
American Family, Chubb, Nationwide and State Farm also have strong ratings in the state.
Company |
Rating
|
|---|---|
| Farm Bureau | |
| USAA | |
| American Family | |
| Chubb | |
| Nationwide | |
| State Farm | |
| Farmers | |
| Travelers | |
| Allstate | |
| Progressive |
Most common home insurance risks in Arizona: wildfires and flooding
For Arizona homeowners, wildfires pose the greatest natural risk, followed by flash floods, hailstorms and lightning.
Wildfires
Arizona has the fourth-greatest exposure to potential losses from wildfire among the 50 states, according to data from Verisk Wildfire Risk Analytics. Nine percent of homes in Arizona — 242,000 homes in total — are at risk of wildfires, according to the same data.
While Arizona's wildfire exposure isn't nearly as severe as California's, the threat is still a major one for homeowners who live closer to brush and undeveloped areas. Fortunately, fire is a core coverage in a standard HO-3 home insurance policy, so you're likely insured against the threat of your home burning down.
Flooding
The last major flood in Arizona on a statewide level took place in January 1993, when unusually heavy rains resulted in serious damage around the Salt, Gila and Verde River basins. While it's improbable for such a 100-year flood to take place on a regular basis, homeowners in Arizona should still remember a few important facts:
- Standard home insurance does not cover flood damage.
- Over the span of a 30-year mortgage, there's a 26% chance that a 100-year flood will occur.
- In 2019, the average flood insurance claim payout in Arizona was $52,000.
- Just one inch of flood water in your home can cause up to $25,000 worth of damage.
No location has zero risk of flooding. According to floodsmart, from 2014 to 2018, over 40% of all flood claims filed came from homeowners outside of high-risk areas. If you live in an area where a flood would cause major damage to your property, you should consider buying a separate flood insurance policy.
Frequently asked questions
How much is home insurance in Arizona?
The average cost of homeowners insurance in Arizona is $1,614 per year, which makes the average monthly rate around $134 per month. This rate is slightly higher than the national average cost of home insurance, $1,516.
Who has the cheapest home insurance in Arizona?
State Farm offers the most affordable rates for Arizona residents, at around $76 a month, which is 57% cheaper than the state average of $134.
Who has the best home insurance in Arizona?
Farm Bureau is the best for the majority of homeowners due to low rates, strong customer service and good general coverage.
How can I make sure that my home is protected from wildfires?
While most home insurance companies cover wildfire damage, you may want to invest in wildfire-specific coverage, especially if you have high-value items that you want to protect.
To get the best possible coverage, consider adding extended replacement coverage, wildfire defense services and replacement cost coverage to replace old, damaged items with new ones. If you live in an area that has a high risk of wildfires, consider loss of use coverage, which pays for expenses such as hotels, laundry and pet boarding costs if you need to evacuate.
Methodology
To find the best homeowners insurance in Arizona, we collected quotes from the top 10 companies in the state.
We compared quotes for a typical home built in 1990 with a value of $225,500, which is the median home age and value of owner-occupied housing in Arizona, according to the latest U.S. Census data.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. Quadrant's rates were publicly sourced from insurer filings and should only be used for comparative purposes.
Home insurance ratings are based on a combination of complaint data from the National Association of Insurance Commissioners (NAIC), the J.D. Power customer satisfaction survey, and ValuePenguin's own editorial ratings.