Our editorial team analyzed regional and national home insurance companies that sell policies in Phoenix to assess which offer the best rates, coverage options, customer service, and savings to homeowners. We prioritized competitive rates, 24/7 customer service, homeownership discounts or bundling options, and specialty or supplemental coverages.
The average cost of homeowners insurance in Phoenix is $2,709 for $300,000 of coverage and a $1,000 deductible. Arizona doesn’t have as much inclement weather as some of its neighboring states, which helps keep premiums reasonable. But it’s prone to severe thunderstorms and flooding, which may require you to purchase additional coverage.
If you’re looking to compare home insurers, here’s a list of some of the best companies in Phoenix and additional tips to help save you money on your policy.
Best home insurance companies in Phoenix
Phoenix homeowners have plenty of reputable and affordable homeowners insurance companies to choose from. The best home insurance company for you depends on your situation and needs.
Here’s a list of some of the top companies in the city to help you get started on your search.
Best company for cheapest rates: Armed Forces Insurance Exchange
Armed Forces Insurance Exchange offers the cheapest quotes for homeowners in Phoenix, with an average cost less than half the Arizona average. The company offers plenty of add-on coverage options, including earthquake and flood insurance, animal liability coverage, and identity theft coverage. It offers discounts for features like home safety and security devices, a new roof, and living in a gated community.
Best company for customer service: State Farm
Best company for discounts: Farmers
Cheapest home insurance companies in Phoenix
Plenty of insurance companies in Phoenix boast homeowners insurance rates well below the state and city average. Armed Forces Insurance Exchange offers the cheapest rates overall, but its coverage is only available to military families. Meanwhile, American Family offers the cheapest rates available to the general public.
Here are the cheapest annual rates for a $300,000 policy in Phoenix.
How much is home insurance in Phoenix?
Homeowners insurance in Phoenix costs an average of $2,709 annually for a policy with $300,000 in dwelling coverage and a $1,000 deductible. But your premiums will vary depending on the value of your home and the deductible you choose.
These are some other factors that may affect your premiums:1
Your home’s materials
Local construction costs
Your home’s proximity to a body of water
The age and condition of your home
Your (or your home’s) claims history
Discounts you’re eligible for
The likelihood of a natural disaster
In addition to these factors, your costs may vary depending on the insurance company you choose. It’s important to shop around and compare home insurance quotes from multiple companies before making a decision.
Cost of home insurance by dwelling coverage in Arizona
Your dwelling coverage is one of the most important factors determining your insurance rates. As you’d expect, the more coverage you have, the more you’ll pay for insurance. For example, in Arizona, you’ll pay more than twice as much for $300,000 of coverage as you would for $100,000 of coverage.
Keep in mind that your coverage amount isn’t necessarily the value of your home. Instead, it’s the cost to replace your home based on factors like your home’s size and features, as well as local construction costs.2
Here are the average annual premiums for Arizona homes by dwelling coverage amount.
Cost of homeowners insurance by deductible amount
Another key factor that affects your insurance costs is your deductible. Common homeowners insurance deductibles range from $500 to $2,000. The higher your deductible, the more of the financial responsibility you’re taking on when you file a claim. As a result, a high deductible can result in lower premiums, while a low deductible results in a higher premium but lower out-of-pocket costs.
Opting for a high deductible can be one way to effectively lower your insurance premiums. But make sure the deductible you choose is still affordable for you in case you need to file a claim.
Average cost of home insurance in other cities in Phoenix
Homeowners insurance premiums can vary from city to city, even across different ZIP codes within a state. One city may have higher premiums if it has a higher likelihood of bad weather, a higher property crime rate, higher construction costs, and more.
Arizona, in particular, experiences a high rate of rainstorms that can lead to flooding. Areas of the state more prone to these storms may have higher homeowners insurance costs.
Here’s the average cost of a homeowners policy in other cities in Arizona.
What to know about owning a home in Phoenix
When you’re purchasing a homeowners policy in Phoenix, it’s important to understand common claims and whether your insurance policy covers them. Some of the most common risks in Arizona are severe thunderstorms and flash floods. Other weather risks include severe temperatures, heavy winds, and tornadoes.
While homeowners insurance covers many of these incidents, it doesn’t usually cover flooding. If you’re in a flood-prone area, you’ll need to purchase a separate flood insurance policy or risk paying out of pocket for any flood damage.
Another thing you’ll have to decide when you purchase homeowners insurance is the amount of coverage you need. Home insurance covers personal liability, your home’s structure, possessions, and loss of use coverage. Your insurer will likely recommend a coverage amount, but you may want to confirm it with your mortgage company.
One of the biggest factors that affect your coverage limit is local construction costs since that determines the cost to rebuild your home. Other factors that go into your home’s replacement cost include:2
Square footage
Materials used
Number of bathrooms and bedrooms
Other structures, both attached and unattached
Special features
Building customizations
Phoenix home insurance FAQs
As a Phoenix homeowner, here are a few more things you may want to know about purchasing home insurance.
Phoenix homeowners have an average annual cost of $2,709 for $300,000 of dwelling coverage with a $1,000 deductible and $2,805 for the same coverage with a $500 deductible. But your costs may be higher or lower depending on your home’s replacement cost, location, features, and other factors.
Armed Forces Insurance Exchange has the cheapest homeowners insurance in Phoenix, with an average premium of $930 per year. But it’s only available to active-duty military members, veterans, and their families. For non-military families, the cheapest insurer is American Family, with an average annual premium of $1,280.
The 80% rule in homeowners insurance states that you should insure your home for at least 80% of its replacement cost. For example, if your home has a replacement cost of $300,000, you should have at least $240,000 of coverage.3
Homeowners insurance isn’t particularly expensive in Arizona. In fact, Arizonans pay slightly less for homeowners insurance than the national average. But rates in Arizona have risen due to an increase in natural disasters, home values, and construction costs.
It depends. Homeowners insurance may cover structural issues, but only those resulting from perils listed in your policy. It won’t cover structural issues resulting from flooding or earthquakes.
It also won’t cover typical wear and tear, such as foundation shifts over time or an old roof that needs replacing. Finally, your insurance policy likely won’t pay in cases of poor craftsmanship or negligence.
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