Arizona is prone to expensive wildfires that cause damage to land and homes on a regular basis, making homeowners insurance vitally important for residents.
The average cost of homeowners insurance in Arizona is $1,667 per year or $139 a month. This is right on par with the national average of $1,754.
Compare the best homeowners insurance companies in Arizona
Policygenius analyzed thousands of quotes from the 5 largest Arizona insurers to find the average cost of homeowners insurance with each company in 2023. We then looked at 2022 J.D. Power customer satisfaction scores and compared that with the coverage needs of Arizona residents to find the best homeowners insurance in Arizona.
Company | Best for... | Average monthly cost |
|---|---|---|
Overall | $114 | |
Coverage options | $162 | |
Cheap rates | $96 | |
Bundling home and auto | $139 | |
Short term rental owners | $162 |
2024 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
State Farm home insurance scores a near-perfect 4.8 out of 5 thanks to its slew of coverage add-ons, high marks on J.D. Power’s customer satisfaction surveys, and strong financial stability ratings.
Pros and cons
Pros
Save up to $1,127 per year when you bundle your home and auto insurance
Excellent line-up of policy add-ons, including extended replacement cost coverage
Cons
No longer sells home insurance policies in California
20% more complaints filed with the NAIC than other companies of its size
More details
Why State Farm is one of our our top picks for widely available coverage
At a time when lots of competitors are no longer insuring homes in areas prone to wildfires or hurricanes, State Farm continues to offer its relatively affordable and highly rated home insurance to homeowners in every corner of the country.
And it doesn't skimp on coverage, offering flood, wildfire, and earthquake protection — one of few competitors that offers all three insurance policies to homeowners in high-risk states nationwide.
Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.
How much does State Farm home insurance cost compared to the Arizona average?
The average cost of home insurance with State Farm in Arizona is $1,362 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is 22% less than the state average of $1,667 per year and 28% less than the national average of $1,754 per year.
How to get a quote
Online through State Farm
2024 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.
Pros and cons
Pros
Above-average property claims satisfaction rating with J.D. Power
Extended and guaranteed replacement cost for your home
Shave $50 off your deductible each year you’re with Farmers
Cons
Below-average scores on J.D. Power’s digital experience survey
More details
Why Farmers is one of our top pick for coverage options
Farmers home insurance offers a variety of coverage options and policy perks that aren't easy to come by, including:
Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.
Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.
Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to Farmers.
How much does Farmers home insurance cost compared to the Arizona average?
The average cost of home insurance with Farmers in Arizona $1,729 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is higher than the state average of $1,667 per year and on par with the national average of $1,754 per year.
How to get a quote
Online through Farmers
2024 Policygenius award winner
American Family
4.5
Offers extended replacement cost
Offers flood insurance
Bundle home & auto
Why we chose it
American Family home insurance has industry-best coverage options, high customer service ratings, and several discounts to compliment its already affordable rates, making it a great option in the 19 states where it’s available.
Pros and cons
Pros
Affordable rates and 11 available discounts
Ranked #2 in J.D. Power’s 2022 U.S. Home Insurance Study
Diminishing deductible feature to lower out-of-pocket claim costs
Cons
Only available in 19 states
Offers online quotes, but requires talking to an agent to complete the process
More details
Why American Family is one of our top picks for low rates
When it comes to both the breadth and quality of home insurance policy options, there are few companies in the same league as American Family, and the company offers some of the lowest rates in the state.
Choose from three comprehensive policy tiers with various levels of protection, or customize a policy to your liking with up to 15 additional coverage options, including inland flood, equipment breakdown, and service line coverage.
We especially like its rare diminishing deductible feature that takes $100 off your policy deductible each year you go without filing a claim — a perk few competitors offer. In Arizona, American Family has some of the lowest available rates, making it an affordable choice for most homeowners.
While it only writes homeowners insurance in 19 states, American Family is the seventh largest home insurer in the United States — which indicates it’s a popular option in the places it operates.
How much does American Family home insurance cost?
The average cost of home insurance with American Family in Arizona is $1,150 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes American Family 45% cheaper than the state average of $1,667 per year and about 52% cheaper than the national average of $1,754 per year.
How to get a quote
Online through American Family
Progressive
4.5
Bundle home & auto
Mobile app
Why we chose it
Progressive offers robust home insurance coverage and ways to save. Our fave perk? Its bundling discount, which lets you save up to 20% on premiums and only requires you to pay one deductible if your home and car are damaged in the same event.
Pros and cons
Pros
Available in all states except Alaska and Hawaii
Slew of policy and discount options available
Easy-to-use app to manage policy
Cons
Not a direct insurance carrier
Cost varies by company Progressive places you with
Customer service & claims options vary by company
More details
Why we chose Progressive
Progressive shines for its industry-best home and auto insurance bundling perks. Insure both your home and car with Progressive and you’ll not only score a huge discount, but you’ll only have to pay one deductible if your home and car are damaged in the same incident. This means if a tornado knocks a tree over onto your home and car, you’ll only be on the hook for one deductible.
How do Progressive home insurance rates compare to the Arizona average?
The average cost of Progressive home insurance in Arizona is $1,668 per year, which is on par with the average annual premium in Arizona of $1,667 per year.
How to get a quote
Online through Policygenius or ASI Progressive
2024 Policygenius award winner
Allstate
4.4
Bundle home & auto
Smart home discounts
All 50 states
Why we chose it
Whether you’re looking for bare-bones coverage on the cheap or a more comprehensive policy package with additional coverages and features like short-term rental coverage and deductible rewards, you’ll likely be able to find it with Allstate.
Pros and cons
Pros
High-quality and flexible policy options
Numerous discounts and features that help you save
Below-average customer complaints
Cons
No longer sells home insurance policies in California
Below-average digital experience rating with J.D. Power
More details
Why Allstate is our top pick for Airbnbs
If you rent out your property through a short-term rental service like Airbnb and a guest destroys or steals your property, Allstate’s HostAdvantage will pay up to $10,000 per rental host period to replace or repair your property.
And the best part? This coverage can be added directly onto your home insurance policy for a small additional fee. To put this into context, only about one-third of the nearly 70 home insurance companies we reviewed even offer home-sharing coverage at all.
How much does Allstate home insurance cost compared to the Arizona average?
The Arizona average cost of home insurance with Allstate is $1,945 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes Allstate about 16% more expensive than the state average of $1,667 and about 11% more expensive than the national average of $1,754.
How to get a quote
Online through Policygenius or Allstate, or by contacting a local Allstate agent.
Methodology & why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
How much is homeowners insurance in Arizona?
The average cost of home insurance in Arizona is $1,667 per year, or $139 a month, for a policy with $300,000 in dwelling coverage. This is about 5% lower than the national average of $1,754 per year.
Arizona homeowners insurance rates by city
Home insurance rates fluctuate within the state due to general factors like the age, size, and value of the homes. Cities that are prone to wildfires and areas of higher crime will likely see more expensive rates. No matter where you live in Arizona, however, you are still likely to find affordable home insurance.
Here’s a look at the average cost of home insurance in the 20 largest cities in Arizona.
City | Average monthly cost | Average annual cost | Difference from state average (%) |
|---|---|---|---|
Phoenix | $148 | $1,781 | 7% |
Tucson | $135 | $1,621 | -3% |
Mesa | $146 | $1,753 | 5% |
Chandler | $140 | $1,678 | 1% |
Gilbert | $142 | $1,705 | 2% |
Glendale | $157 | $1,878 | 13% |
Scottsdale | $137 | $1,643 | -1% |
Peoria | $143 | $1,712 | 3% |
Tempe | $146 | $1,751 | 5% |
Surprise | $137 | $1,638 | -2% |
Buckeye | $142 | $1,709 | 3% |
Goodyear | $140 | $1,683 | 1% |
Yuma | $136 | $1,628 | -2% |
Avondale | $148 | $1,771 | 6% |
Flagstaff | $136 | $1,631 | -2% |
Queen Creek | $121 | $1,451 | -13% |
Maricopa | $141 | $1,697 | 2% |
Casa Grande | $147 | $1,761 | 6% |
Lake Havasu City | $147 | $1,760 | 6% |
Marana | $129 | $1,552 | -7% |
Arizona homeowners insurance rates by coverage amount
The table below highlights the average annual premium in Arizona for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.
Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $871 |
$200,000 | $1,261 |
$300,000 | $1,667 |
$400,000 | $2,086 |
$500,000 | $2,530 |
Cheapest homeowners insurance companies in Arizona
Based on our analysis, Armed Forces Insurance, USAA, and American Family are the three cheapest home insurance companies in Arizona, with statewide average premiums ranging from $714 to $1,150 per year.
Here are the cheapest homeowners insurance companies in Arizona.
Company | Average annual cost |
|---|---|
$714 | |
$863 | |
$1,150 | |
$1,254 | |
$1,309 | |
$1,315 | |
$1,362 | |
$1,509 | |
$1,668 | |
$1,729 | |
$1,940 | |
$1,945 | |
$3,711 | |
$4,535 |
Cheapest Arizona homeowners insurance if you have poor credit
Your credit score also plays a role in your home insurance premiums. Homeowners with lower credit scores generally see higher rates, since insurers consider you more likely to file a claim.
Here are the average insurance rates for homeowners with poor credit.
Company | Average annual cost |
|---|---|
Armed Forces Insurance | $1,163 |
USAA | $1,476 |
Nationwide | $1,825 |
American Family | $2,025 |
Farm Bureau Insurance | $2,279 |
State Farm | $2,332 |
Progressive | $2,495 |
Farmers | $2,824 |
Allstate | $2,832 |
Farmers | $3,054 |
Chubb | $3,182 |
Country Financial | $5,118 |
Auto-Owners Insurance | $12,790 |
Travelers | $14,868 |
Cheapest Arizona homeowners insurance if you have an older home
Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they can be fragile, their construction materials may be obsolete, and certain structural components like the roof or plumbing may not be in good shape or up to current-day code. Because of this, they'll charge higher premiums to offset the risk.
Here's the cheapest home insurance in Arizona for a 50-year-old home.
Company | Average annual cost |
|---|---|
Armed Forces Insurance | $782 |
USAA | $901 |
American Family | $1,168 |
Chubb | $1,194 |
Auto-Owners Insurance | $1,202 |
Nationwide | $1,259 |
State Farm | $1,365 |
Farm Bureau Insurance | $1,552 |
Farmers | $1,663 |
Allstate | $1,795 |
Farmers | $1,797 |
Progressive | $1,936 |
Country Financial | $3,828 |
Travelers | $6,188 |
Cheapest Arizona homeowners insurance if you have a history of claims
One of the biggest factors that plays a role in your home insurance premium is your claims history. You'll typically pay more for home insurance if you have multiple claims on your record, since insurers perceive you as posing a greater risk of filing more.
Here's the cheapest home insurance companies in Arizona for a homeowner with three claims within a five-year period.
Company | Average annual cost |
|---|---|
USAA | $891 |
Armed Forces Insurance | $973 |
Auto-Owners Insurance | $1,254 |
State Farm | $1,557 |
American Family | $1,994 |
Progressive | $2,176 |
Chubb | $2,394 |
Farmers | $2,505 |
Nationwide | $2,769 |
Allstate | $3,342 |
Farmers | $3,642 |
Country Financial | $3,839 |
Farm Bureau Insurance | $5,201 |
Travelers | $6,528 |
How to buy homeowners insurance in Arizona
Wildfires are a growing risk for homeowners throughout Arizona. To make sure your home is protected, and that you don’t get stuck with expensive home repair bills, it’s important to know what coverage you need.
Here are a few steps to follow when shopping for home insurance in Arizona:
Frequently asked questions
How much is home insurance in Arizona?
The average yearly cost of homeowners insurance in Arizona is $1,897 per year or $158 a month.
Is homeowners insurance cheaper in Arizona?
With a national average rate of $1,754, Arizona’s homeowners insurance rates are fairly even with the rest of the country.
Is home insurance mandatory in Arizona?
While homeowners insurance is not required in Arizona, most mortgage lenders do require borrowers to have an insurance policy.
How does the crime rate in my area affect my policy?
Since areas with more crime are likely to see increased amounts of home insurance claims, insurance companies will usually charge higher rates.
