Best Home Insurance in Arizona (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
State Farm is the best home insurance company in Arizona, charging the state’s cheapest average rate of $145 a month.
Allstate is Arizona’s best home insurance company for policy offerings, and American Family offers the best discounts.
Arizona’s cheapest home insurance companies
State Farm has the cheapest homeowners insurance for most Arizonans. Its average rate is $1,737 a year, or $145 a month.
While USAA has the second-cheapest average rate of $1,785 a year, it sells insurance only to members of the military, veterans and their families. Pacific Indemnity has the second-cheapest rates for most Arizonans, at $1,819 a year.
Cheapest home insurance companies in Arizona
| Company | Average annual rate |
|---|---|
| State Farm | $1,737 |
| Pacific Indemnity | $1,819 |
| Farm Bureau | $1,965 |
| Progressive | $2,047 |
| Nationwide | $2,108 |
| Allstate | $3,331 |
| American Family | $3,657 |
| Farmers | $5,157 |
| USAA* | $1,785 |
Best homeowners insurance companies in Arizona
State Farm, Allstate, American Family and USAA are the best home insurance companies in Arizona.
| Company | Annual rate | J.D. Power overall satisfaction | NAIC complaint index |
|---|---|---|---|
| Best overall: State Farm | $1,737 | 880 (above average) | 1.69 (low) |
| Best policy offerings: Allstate | $3,331 | 868 (average) | 3.08 (poor) |
| Best discounts: American Family | $3,657 | 875 (above average) | 0.93 (good) |
| Best for military families: USAA | $1,785 | 906 (above average) | 2.26 (poor) |
Best overall: State Farm
State Farm offers excellent rates and has a high customer satisfaction rating. Its overall satisfaction rating is the highest of the insurers J.D. Power includes in its annual study.
While State Farm’s NAIC complaint rating could be better, it is still low in comparison to the size of the company.
| Pros | Cons |
|---|---|
| Cheapest average rate in Arizona for most homeowners | Subpar complaint rating |
| High overall satisfaction | |
| Good discounts |
Best policy offerings: Allstate
While Allstate’s home insurance rates are slightly above the state average, its policy offerings can help lower your premium.
| Pros | Cons |
|---|---|
| Allstate’s Rateguard shields you from a rate increase after your first claim | You need to upgrade to Allstate’s Enhanced Package to participate in RateGuard and Deductible Rewards programs |
| The Deductible Rewards program can lower your deductible if you avoid making a claim | High complaint rating |
| Many discounts available |
Best discounts: American Family
American Family’s home insurance rates are higher than the state average, but it offers a good array of discounts to lower your rates. Its satisfaction and complaint ratings also make the company worth a look.
| Pros | Cons |
|---|---|
| Bundle discounts can save you up to 20% on home insurance and 29% on auto insurance | American Family's average home insurance rate before discounts is higher than Arizona’s average |
| Discount is available for houses less than 15 years old | |
| Loyalty discount is available after one year with American Family | |
| Generational discount is available if your parents have home or auto insurance through American Family and you’re 18 to 30 years old | |
| It has a good customer service history |
Best for military families: USAA
On top of offering an average home insurance rate that’s well below the state average, USAA has policy offerings aimed at active-duty and veteran military members.
| Pros | Cons |
|---|---|
| Second-cheapest homeowners insurance rates in Arizona | No dedicated agents |
| Active-duty service members get coverage for military equipment and uniforms | Only available to current and veteran military and their families |
| Personal property coverage at replacement cost |
Cost of home insurance in Arizona
The average cost of home insurance in Arizona is $2,623 a year, 6% cheaper than the national average of $2,801.
Several factors determine what you pay for a home insurance policy, including:
- Age of the home
- Construction materials used
- Your ZIP code
- Claim history
- Coverage limits and deductibles chosen
- Discounts you qualify for
While home insurance companies may offer similar policies, they rarely cost the same. This is because home insurance companies weigh rate and risk factors differently. One company may see your claim history as more of a risk than another company, for example.
To get the coverage you want at the cheapest price, compare home insurance quotes from several companies.
Home insurance rates by coverage amounts
The dwelling coverage limit you choose for your home insurance affects your premium. For example, there’s a $613 cost difference between a $350,000 and a $450,000 home insurance policy in Arizona. That’s an extra $51 a month.
Home insurance cost by dwelling coverage limit
| Dwelling limit | Average annual rate |
|---|---|
| $350,000 | $2,498 |
| $400,000 | $2,801 |
| $450,000 | $3,111 |
When choosing your dwelling coverage limit, you’ll want to make it equal to the replacement value of your home in the event of a total loss. This is usually less than the market value of the home.
Arizona home insurance rates by city
Yuma has the cheapest homeowners insurance rate among Arizona’s 15 biggest cities, at an average of $2,291 a year. Phoenix has the most expensive rate, at $3,099 a year.
| City | Average annual rate |
|---|---|
| Avondale | $2,589 |
| Buckeye | $2,583 |
| Chandler | $2,644 |
| Gilbert | $2,631 |
| Glendale | $2,734 |
| Goodyear | $2,515 |
| Mesa | $2,840 |
| Peoria | $2,534 |
| Phoenix | $3,099 |
| San Tan Valley | $2,607 |
| Scottsdale | $2,929 |
| Surprise | $2,534 |
| Tempe | $2,863 |
| Tucson | $2,612 |
| Yuma | $2,291 |
Methodology
The rates shown in this article are based on nonbinding quotes collected from Quadrant Information Services. Your rates may vary. Average rates were compiled from rates in Arizona. The following coverages and deductibles were used unless otherwise noted:
- $400,000 dwelling coverage
- $40,000 other structures
- $200,000 personal property
- $80,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible
Customer satisfaction and claims satisfaction ratings obtained from the J.D. Power 2023 U.S. Home Insurance Study.
Complaint ratings come from National Association of Insurance Commissioners (NAIC) records for 2023. A confirmed complaint is one that leads to a finding of fault. A company with a 2.0 complaint rating has twice as many confirmed complaints as expected for its size. A company with a 0.5 rating has half as many.
*USAA is only available to active-duty and veteran military members and their families.