Best Homeowners Insurance Rates In Arizona

On average, your neighbors pay $67 a month.

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Compare Homeowners Insurance In Arizona

From the Grand Canyon to Red Rocks, Arizona is as beautiful and unique as a desert flower. Arizona was the birthplace of Frank Lloyd Wright, Cesar Chavez, and Sandra Day O’Connor. Whether you’re a sun devil or a wildcat, you should be aware of the homeowners insurance risks present in The Copper State.

Average Arizona Homeowners Insurance Rates

How much is home insurance in Arizona? Arizona has some of the lowest average homeowners insurance rates of any state in the US. The average cost of home insurance in the state of Arizona was $810. That's much lower than the national average of $1,173. Only six  states have lower average home insurance rates than Arizona.

Arizona (AZ) Average Annual Homeowners Insurance Rates
  2013 2014 2015
Arizona Annual Average $724 $765 $810
Arizona Price Per Month $60 $64 $67
US Annual Average $1,096 $1,132 $1,173
US Cost Per Month $91 $94 $98
National Rank 44 44 45
Source: Facts + Statistics: Homeowners insurance

The graph below shows the change in average Arizona home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, Arizona homeowners insurance rates increased from $675 in 2011 to $810 in 2015, a jump of $135 dollars, or 20 percent.

Arizona average homeowners insurance rates

Choosing a homeowners insurance company in Arizona should be easier. Actually, it’s already easy. You could just go with whichever company your mortgage lender recommends, but you won’t get the best rates that way. The key to finding the best rates is to compare homeowners insurance in Arizona from multiple companies.

Most Popular Arizona Home Insurance Companies

Last year, these were the 10 most common home insurance companies reported by QuoteWizard users living in the state of Arizona. Out of the 19,703 Arizona homeowners that used QuoteWizard to request insurance quotes last year, 680 had no home insurance.

  1. Allstate
  2. Farmers
  3. Geico
  4. American Family
  5. Liberty Mutual
  6. Progressive
  7. AAA
  8. USAA
  9. Hartford
  10. Nationwide
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Best Homeowners Insurance Companies in Arizona

The above list shows Arizona’s most popular home insurers according to our users. But popular doesn’t always mean best.

Our study on the Best Homeowners Insurance Companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:

  1. Amica: Best Overall
  2. MetLife: Best for Bundling
  3. Allstate: Best for Local Agents
  4. Hartford: Best for Seniors
  5. State Farm: Best for Pet Owners
  6. Travelers: Best for Flexible Policies
  7. Nationwide: Best Replacement Coverage
  8. Farmers: Best for Eco-Friendly Homes
  9. Liberty Mutual: Best for Quick and Easy Quotes
  10. Auto Owners Insurance: Best Claims Experience
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Arizona Home Insurance Company Market Share

Source: Insurance Information Institute
Rank Company Financial Rating Market Share
1 MetLife, Inc. A 11.4%
2 Prudential Financial A+ 7.4%
3 Lincoln National A+ 5.6%
4 Jackson National Life Group A+ 5.1%
5 AIG A 4.8%
6 Nationwide Mutual A+ 4.4%
7 Guggenheim Capital LLC B++ 4.0%
8 New York Life A++ 3.7%
9 AEGON A+ 3.1%
10 Manulife Financial NR 2.5%
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Arizona Home Insurance Rate Factors

How much does homeowners insurance cost in Arizona? Insurers consider many different factors when calculating home insurance rates. Some of these factors are based on the home and the homeowner. Other factors depend on the region where the home is located.

Your Personal Rate Factors

Your House

Every house is different, and so too are home insurance rates. Insurance carriers start by analyzing your house for insurance risks. A few stick out:

Age of house

As a house ages, the cost to insure it rises. Older houses have a higher chance of requiring an expensive claim. The odds rise even higher if the house hasn’t been properly maintained.

64.1 percent of the houses in Arizona were built between 1980 and 2009. That’s relatively recent in terms of home construction age. For the 8.9 percent of Arizona homes built before 1959, the chances of a claim needing to be filed rise considerably, and so do their insurance rates.

Roof age and quality

The roof is the main source of protection for your home against weather. If your roof is old or in poor condition, insurers will charge you higher rates.

During the summertime, temperatures in Arizona approach 100 degrees nearly every day. When it’s this hot, your roof can reach temperatures of 160 degrees or more. UV rays from the sun can make an asphalt roof dry and brittle, destroying any waterproofing ability it has. Extreme heat can speed up this process even more, weakening its flexibility. Thermal shock can set in as the roof expands and contracts as it heats up and cools down. This causes the roofing to strain and split.

Terracotta or clay tiles are great in hot climates. They are incredibly heat resistant and durable, giving your roof a long life. Both last up to fifty years. Even if you have an asphalt shingle roof, pay attention to its lifespan.

Replacement cost

Replacement cost refers to the dollar amount required to rebuild your home from the ground up. You need enough dwelling coverage, the cornerstone of home insurance, to match your home’s replacement cost.

It’s important to understand that a house’s replacement cost and market value are two separate things. A $229,000 home in Glendale could have a higher replacement cost than a $450,000 Scottsdale home. Market value is not an accurate reflection of what your replacement cost could be.

Replacement cost depends on a house’s size, style, and finishes. A lavish house with high end appliances and custom finishing will obviously have a higher replacement cost than a modest house. You can calculate a rough estimate of your home’s replacement cost.

Claims History

Filing a claim virtually guarantees a raise in your premium. Claims stays on your insurance record on average for five to seven years. If you file another home claim within that time period, your rates can shoot up even more, or your insurer may even refuse to renew your coverage.

If you’re about to make a claim request, it may not be worth it. If the damages to your home are relatively minor, you should pay for repairs out of pocket. IT will save you money in the long run.

Pets

Arizona is definitely pet country, but that can lead to insurance complications. Unfortunately, certain dog breeds are considered high risk by insurers. If your dog is one of those ‘risky’ breeds, you might face high rates or difficulties finding an insurer. Owning exotic pets can lead to a rate increase as well.

Credit Score

Insurance companies check credit scores during the quoting process. If you have bad credit, you’re going to face higher insurance rates. Your current credit debt, history, and limits all figure into your rate. The average credit score in Arizona is 676. This is slightly under the national average of 682.

Arizona Rate Factors

Weather

Weather is a significant factor in homeowners insurance rates. It’s a regional factor, so bad weather hurts rates for everyone in your area, not just you.

During the summer months, flooding is a danger in Arizona. And absolutely no homeowners insurance plan covers damage from flooding. You will need to have flood insurance specifically for that.

Crime

If you live in an area with a high rate of property crime, expect higher rates. Property crime rates vary across Arizona. Tempe, for example, has a property crime rate of 49.57 per 1,000 residents. Prescott, on the other hand, has a property crime rate of 21.95 per 1,000 residents. Tempe residents will face higher rates.

Types of Home Insurance Policies

  • HO-1: This is the simplest policy available. It only covers common named perils.
  • HO-2: This type covers named perils, but also handles risks such as fire, falling objects and vandalism.
  • HO-3: This is the most popular form of homeowners policy due to its comprehensive coverage. It is an open policy for your house, attached structures like a garage or deck, as well as your belongings and liability. Everything is covered under this policy unless specifically excluded.
  • HO-5: A premium plan that offers the coverage of a HO-3 with fewer exclusions.
  • HO-6: This is condo coverage that provides liability and protects possessions.
  • HO-7: Provides HO-3 style coverage for manufactured and mobile homes.
  • HO-8: With older homes, standard coverage can be costly due repairs or replacements needing to be done with antiquated materials. The HO-8 provides affordable insurance for old homes by offering repairs or replacements with modern materials.

Arizona Department of Insurance

Website:
Homepage
Insurance Commissioner:
Keith A. Schraad
Insurance Hotline:
(800) 325 - 2548
Office Hours:
Monday - Friday
8:00 am to 4:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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