The average cost of Arizona home insurance is $1,977 per year for a policy with a $1,000 deductible and $300,000 in dwelling coverage. One of the main concerns for Arizona homeowners is wildfires. Compared to other U.S. states, Arizona has the fifth-most housing units at risk for extreme wildfires, with nearly 122,000 homes at risk. This makes finding home insurance in Arizona important.1
Always compare home insurance quotes from at least three insurance companies before buying a policy. Here’s what you need to know about finding coverage in Arizona.
Best home insurance companies in Arizona
You have many excellent choices for home insurance in Arizona, but the best choice for you won’t always be the cheapest option. Look for insurers that combine affordability with thorough coverage and reliable service. You want an insurer that you can fully trust to protect your personal property, not just the one with the lowest rates.
Check out these insurers to start your search — each is the best insurer for a specific category in Arizona. The average annual premiums below reflect costs for a $300,000 dwelling coverage policy with a $1,000 deductible.
Cheapest rates: Armed Forces Insurance Exchange
Armed Forces Insurance Exchange has the cheapest homeowners insurance rates by far in Arizona, and it offers reliable and extensive coverage. The company sells coverage only for military members and their families. Arizona has one of the highest populations of veterans in the country, with more than 465,000 veterans.2
Best insurer for customer service: State Farm
Best insurer for discounts: Travelers
Best insurer for young homeowners: American Family
Cheapest home insurance in Arizona
USAA offers the cheapest home insurance in Arizona, with an average monthly rate of only $98.
Take a look at some of the other cheap home insurance companies in Arizona in the table below. The average premiums reflect costs for a $300,000 dwelling policy with a $1,000 deductible.
Cost of homeowners insurance in Arizona
The average cost of homeowners insurance in Arizona is $2,175 per year for a $500 deductible policy with dwelling coverage of $300,000. But your rate depends on your location, how much coverage you need, and the insurance company you choose. The higher your coverage limits are, the higher your premiums will be.
Other factors that can affect your premium include your home’s size, age, local building costs, your policy’s deductible, your ZIP code, and even your credit history. It’s essential to compare home insurance quotes from multiple companies before buying a policy.
Cost of homeowners insurance by dwelling coverage amount
The factor that most significantly sways how much you pay for home insurance is your dwelling coverage amount. Dwelling coverage is the most important part of your home insurance policy, covering property damage in the event of a covered loss, such as a wildfire. The higher your dwelling coverage limit is, the higher your premium will be.
Take a look at how much your average annual premium can increase when you choose higher dwelling coverage limits for your home. The average monthly premiums below are for policies with a $1,000 deductible.
Cost of homeowners insurance by deductible
Your home insurance deductible is the amount you need to pay out of pocket for a claim before your homeowners insurance coverage kicks in. Home insurance deductibles typically range between $500 and $2,000. Your deductible will also affect your premium. The lower your deductible is, the higher your premium will be.
See how your premium for a policy with $300,000 in dwelling coverage can vary based on your deductible below.
How to get cheap homeowners insurance in Arizona
You can secure cheap homeowners insurance in Arizona in various ways, including:
Compare home insurance quotes. Comparing quotes from multiple companies is the best way to save money on home insurance. Insurers weigh various rating factors differently, so you should compare quotes from at least three different companies to find the best coverage for your specific situation.
Apply for discounts. Discounts are a great way to save money on home insurance. Almost all insurers offer a wide variety of home insurance discounts. Just ask for the information. Bundling your auto insurance with your home insurance is a common discount that can save you hundreds.
Increase your deductible. Increasing your deductible will automatically lower your premiums, but you’ll have to pay more out of pocket if there’s a claim. Make sure you can afford to pay your new, higher deductible before increasing it.
Improve your credit. Improving your credit can reduce your home insurance premiums. Insurers consider your credit history when determining premiums. A higher credit score indicates a smaller likelihood of filing a claim, so you’ll pay lower premiums than homeowners with bad credit.
How much homeowners insurance do you need in Arizona?
Though you don’t legally need to carry homeowners insurance in Arizona, it’s a good idea to purchase it. Home repair and replacement expenses can be very costly for homeowners without help from an insurer. Also, if you have to take out a mortgage on your home, your mortgage lender will require you to carry home insurance.
The 80/20 rule is a good guideline to follow for home insurance coverage. You should carry coverage equal to or greater than 80% of your home’s replacement cost.3 No matter how much dwelling coverage you choose, it’s important to know what your home insurance policy covers.
What are some of the biggest risks when owning a home in Arizona?
Owning a home in Arizona comes with a few key risks that homeowners should be aware of: