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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.
Arizona has some of the lowest average home insurance rates of any state in the US. According to the most recent available data from the Insurance Information Institute, in 2014, the average cost of home insurance in the state of Arizona was $765, significantly lower than the national average of $1,132. Only seven states have lower average home insurance rates than Arizona.
|Arizona Annual Average||$691||$724||$765|
|Arizona Price Per Month||$57||$60||$64|
|US Annual Average||$1,034||$1,096||$1,132|
|US Cost Per Month||$86||$91||$94|
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 probably 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.
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.
Why contact every individual company in Arizona that you want a homeowners quote from when you can just answer a few questions about your home and desired coverage, and get competing quotes from agents? Save time and money with QuoteWizard.
|Rank||Company||Direct Premiums Written (in thousands)||Market Share|
|2||Prudential Financial Inc.||$578,699||7.4%|
|3||Lincoln National Corp.||$433,478||5.6%|
|4||Jackson National Life Group||$397,345||5.1%|
|5||American International Group||$375,557||4.8%|
|6||Nationwide Mutual Group||$345,013||4.4%|
|7||Guggenheim Capital LLC||$314,211||4.0%|
|8||New York Life Insurance Group||$285,898||3.7%|
|10||Manulife Financial Corp||$194,973||2.5%|
Source: A.M. Best (Ratings as of 9/10/2015)
|Rank||Company||Direct Premiums Written (in thousands)||Market Share|
|1||Farmers Insurance Group of Cos.||$689,410||8.2%|
|6||United Service Automobile Assurance Co.||$385,237||4.5%|
|7||American Family Insurance Group||$358,171||4.1%|
|8||Travelers Companies Inc.||$348,759||4.0%|
|9||Hartford Fire & Casualty Insurance||$243,971||2.8%|
|*Represents both home and auto insurance|
Many different factors come into play when insurance companies calculate the cost of homeowners insurance. Some, like the age of your home, are within your control. Others, like crime rates or natural disasters, are beyond your control. Here are some of the factors that affect the cost of homeowners insurance in Arizona.
Home prices can greatly affect the cost of insurance in any given state. A higher average home price generally means higher premiums in that state. For Arizona, the average listing price is $291,602 as of July 2015, marginally higher than the national average of $284,748.
Burglary is a serious and sometimes violent property crime. States with higher average burglary rates generally have higher average home insurance premiums, because the likelihood that someone will need to file a claim is higher. According to data from the FBI Uniform Crime Report, in 2013, Arizona’s average burglary rate was 732.4 per 100,000 people, which is slightly higher than the national average of 610.0 per 100,000.
States with more law enforcement per capita tend to be safer than states with fewer policemen and women. In Arizona, there are 27.3 law enforcement personnel per 100,000 total citizens, which is only slightly lower than the national median of 32 per 100,000.
As a mostly desert climate, Arizona’s homeowners need to be aware of weather that may constitute a home insurance hazard. Arizona is no stranger to heat, droughts, and other desert-like weather events.
Drought: Arizona averages only 13 inches of rainfall per year, the fourth lowest of any state. The lack of water poses an obvious threat to homeowners, as dryness can damage foundations and yards alike. Because of the arid climate, temperatures can swing widely between day and night, and between seasons. For example, the summer highs are routinely over 100 in the Phoenix area, while the winter lows are regularly below freezing.
That said, geography variations lead some cities to have much higher rainfall than others. For example, Yuma averages only 3.3 inches of rain per year, while Flagstaff averages about 22 inches per year. There are large differences in weather caused by topography as well. Arizona contains both the city with the most days over 100 degrees (Phoenix) and the city with the most days below freezing (Flagstaff, elevation 7,000 feet).
The US Drought Monitor ranks states’ drought conditions from D0 (abnormally dry) to D4 (exceptional drought). As of July 2015, 75% of Arizona was experiencing D1 (moderate drought) conditions or higher. And, about 10% of the state was experiencing D2 (severe drought) or higher. These conditions affect over 4 million people.
Heatwaves: Much of the year, it is incredibly hot in Arizona, leading it to be one of the top 10 hottest states year round. This can cause sky-high energy bills because of air conditioning costs, and acts as a hazard to homeowners. As early as May, average temperatures hit 90 degrees. In western Arizona, in Bullhead City, the average August high is 110 degrees, so heatwaves are more common here than many other states. Heatwaves can lead to power outages, and cause heatstroke and other serious effects in children and adults over 65. Because Arizona has almost a million residents over the age of 65, heatwaves are something to be taken seriously.
Monsoon season: In late summer, monsoon season begins in Arizona. High temperatures and low pressure produces moisture in the air and causes fast winds, the recipe for a monsoon. They are characterized by bursts of heavy rainfall, followed by breaks in which dust storms can occur. On average, Arizona will receive half its annual rainfall in the few short months of monsoon season. And, Arizona averages 37 days per year of storm activity, almost exclusively in July and August, with some in September. The rainfall is heavy, causing unforeseen floods, drowning of vegetation, and mudslides. However, the rain is also very random, so it’s important to protect yourself from this unpredictable weather season. The only way to obtain flood insurance is through the National Flood Insurance Program. Learn more about the NFIP here.
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