6 Best Homeowners Insurance Companies in Arizona of 2023
Homeowners in Arizona, including those living in big cities like Phoenix and Tucson and small towns like Prescott and Nogales, need homeowners insurance to protect themselves and their families.
While homeowners insurance isn’t a legal requirement in the Grand Canyon State, all lenders require it as a prerequisite for obtaining a mortgage.
The average annual cost of a homeowners policy in the state of Arizona is $1,615, which works out to about $134 per month.
Here at PropertyNest, we understand the importance of choosing the right homeowners insurance company and want all homeowners in Arizona to have what they need to make an informed choice, which is why we’ve done the research to make this list of the best homeowners insurance companies in Arizona.
Compare Homeowners Insurance Rates in AZ
The Best Homeowners Insurance Companies in Arizona
- Allstate: Best for Extended Coverage
- State Farm: Best for Affordable Coverage
- CHUBB: Best for Wildfire Protection
- Farmers: Best for Customizable Coverage
- Nationwide: Best for Discounts
- Auto Owners: Best for Customer Service
Allstate: Best for Extended Coverage
Allstate is one of the biggest property and casualty insurance carriers in the United States and has been operating since 1931.
We selected Allstate for our list because they offer an array of endorsements and riders that allow homeowners to customize and extend their coverage.
Allstate also offers multiple homeowners insurance discounts and has a user-friendly website that makes it easy to file claims.
Allstate’s average premium in Arizona is $1,620 per year, in line with the state average, and you can save by layering multiple discounts.
Read a full Allstate Homeowners insurance review.
Allstate has received excellent financial and customer service ratings as follows.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
State Farm: Best for Affordable Coverage
State Farm is celebrating its 100th year in business, one of the country's best-reviewed insurance companies.
State Farm offers high limits for homeowners with high-value properties who may need more than the usual amount of coverage.
We selected them for our list because they have the lowest average homeowners premium in Arizona, making them an optimal choice for most people.
We also like that State Farm operates according to a strong set of values, which most consumers know about thanks to their “Good Neighbor” ads and jingle.
The average cost of a homeowners insurance policy with State Farm in Arizona is just $915 per year, well below the state and national averages.
State Farm receives excellent ratings for its financial strength, claims-paying ability, and customer service.
Read a full State Farm homeowners insurance review.
| J.D. Power (out of 1,000) | 829 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Chubb: Best for Wildfire Protection
- Available in 50 states & Washington, D.C.
- Quote access: Agent only
Chubb is known as the largest publicly-traded property & casualty insurance company in the world.
We chose them for our list because, in addition to offering protection for high-value homes, Chubb offers the best protection against wildfires, something that’s a big concern for residents of Arizona.
The company’s Masterpiece Homeowners policy offers protection against natural disasters and is ideal for homes worth more than one million dollars.
The average Arizona premium for Chubb homeowners insurance is $1,115 per year, putting it well below the state average.
CHUBB has consistently received top ratings for its financial strength & customer service.
| J.D. Power (out of 1,000) | 809 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | D- |
| NAIC Complaint Index | 0.21 |
Farmers: Best for Customizable Coverage
Farmers Insurance got its start in California in 1928, and today, it provides homeowners coverage in 41 states, including Arizona.
We selected Farmers for our list because its unique, tiered coverage makes it easy for Arizona homeowners to customize their policies.
We also appreciate their lower-than-average premiums and excellent customer service.
The average annual cost of Arizona homeowners insurance with Farmers is $1,240, which is well below the state average.
Farmers Insurance has received high customer service, financial stability, and strength ratings.
Read a full Farmers homewoners insurance review.
| J.D. Power (out of 1,000) | 792 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A- |
| NAIC Complaint Index | 0.56 |
Nationwide: Best for Discounts
Nationwide got its start offering auto insurance to Ohio farmers all the way back in 1925.
It is one of the largest insurance carriers in the US and is well-regarded for its financial stability and customer service.
We selected Nationwide for our Arizona list because it offers nine discounts to help homeowners save on their insurance.
We also appreciate Nationwide’s unique discounts for people who flip houses or choose to buy a fixer-upper.
The average cost of an Arizona homeowners policy Nationwide is just $1,010 per year, putting it well below the state average.
Nationwide has received top ratings for financial strength and customer service.
| J.D. Power (out of 1,000) | 816 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 0.88 |
Auto Owners: Best for Customer Service
Auto-Owners may not be as well known as some of the other companies on our list and certainly one might not necessarily expect that an insurance company titled Auto-Owners would be insuring homeowners, but they actually know a great deal about insurance, and not just insurance for cars.
We like that Auto-Owners has a user-friendly website, but we chose them for our list because they offer the best customer service.
We also like that there are multiple discounts that most homeowners can qualify for.
Auto-Owners has been highly rated for both financial strength and service.
| J.D. Power (out of 1,000) | 874 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
How We Selected Best Homeowners Insurance Companies for Arizona
Buying homeowners insurance is a big commitment and can be both time-consuming and stressful.
When we chose Arizona homeowners companies for our list, we used the following criteria to ensure we found the best options for our readers.
Cost
Keeping homeowners insurance costs low is a priority for many homeowners, so we focused on companies with average costs that were at or below the state average for Arizona.
Discounts
Insurance discounts can help Arizona homeowners lower the cost of their policies and save money, so we chose only companies with three or more available discounts and gave special preference to companies with discounts that most homeowners can qualify for.
Coverage
Homeowners insurance coverage can range from basic to extensive and vary depending on the home's value and other factors, so we chose companies with a wide menu of endorsements and add-ons to help Arizona homeowners get the coverage they need.
Customer Support
Customer support can mean the difference between a stressful claims experience and an easy one, so we prioritized those companies with solid customer service reviews and multiple service options.
Technology
We know that many homeowners prefer online and mobile services for insurance, so we selected companies with useful, user-friendly websites and mobile apps.
What Are the Factors That Impact the Cost of Homeowners Insurance?
Many factors can affect the cost of homeowners insurance in Arizona.
Coverage Limits
The coverage limit you need will depend upon the appraised value of your home, with more expensive homes costing more to insure.
Deductible
You have a choice of deductibles, and choosing a high deductible will lead to a reduction in your homeowners insurance premium, while a low deductible will increase what you pay each month.
Location
The location of your home will impact what you pay for homeowners insurance, with homes near bodies of water or in areas prone to natural disasters, as well as those in urban areas where crime rates are high, generating higher than average homeowners premiums.
Additional Coverage/Endorsements
The average costs we provided here are for basic coverage but adding endorsements or additional coverage will increase your costs.
How Much Homeowners Insurance Do You Need?
One of the most important decisions you’ll make as a homeowner is deciding how much coverage to purchase when you shop for homeowners insurance.
The value of your home can and should be used to determine how much coverage you need, as follows.
- Dwelling coverage protects your home and any attached structures, and as a rule, you should buy 100% of the cost to rebuild your home from the ground up.
- Other structures coverage protects all other structures and outbuildings on your property, including sheds and fences, and should be about 10% of your dwelling coverage.
- Personal property coverage protects all personal belongings and contents of your home in the event they’re damaged, destroyed, or stolen and should total somewhere between 50% and 70% of your dwelling coverage.
- Personal liability coverage protects you if someone gets injured or their belongings are destroyed while on your property, and you should have between $100,000 and $500,000 of coverage.
- Medical payments coverage protects you by paying a portion of your guest’s medical expenses if they’re injured on your property; in most cases, coverage ranges from $1,000 to $5,000 per guest.
- Additional living expenses coverage provides money for you to pay for a hotel and related expenses in the event that your home is not liveable and should total 20% of your dwelling coverage.
Your total policy coverage should be about two times the replacement cost of your home, not including your personal liability and guest medical coverage.
What Is and Isn’t Covered by Homeowners Insurance
Your homeowners insurance policy offers a lot of protection for you and will pay for many expenses, but it doesn’t cover every expense that you might incur.
Here’s a look at what a standard homeowners insurance policy covers.
- Any and all structures on your property, including your home, detached garages, sheds, fences, and other buildings.
- The personal belongings of everyone living in the house, whether they are in your home when they are damaged or stolen or not.
- Property damage caused by covered events, including storms and other natural disasters–except flood insurance, which is offered separately.
- Your personal liability in the event someone is injured, or their property is destroyed while in your home.
- Guest medical expenses up to the policy limit.
All coverage will apply up to the limits in your policy and the deductible you choose.
Here are some things that are not covered by homeowners insurance.
- Earthquake damage
- Flood damage
- Pest damage or infestation
- Power failure
- Neglect
- Nuclear hazard
- Government action
The first four items on this list are remediable by adding policy endorsements or by purchasing an additional policy, as would be the case with flood insurance, which must be purchased from FEMA.
The last three items may not be remedied; neglect is within your control, and your insurance carrier assumes you will do what is necessary to keep your property in good condition; the final two items are rare but cannot be addressed with riders or outside coverage.
Synopsis
PropertyNest recommends that all Arizona homeowners purchase enough homeowners insurance to cover rebuilding their homes from the ground up, plus enough to pay for the reconstruction of outbuildings, replacement of their personal belongings, and alternative living arrangements.
You should remember the factors that can impact the cost of homeowners insurance and be sure to take advantage of all available discounts to reduce your costs.
We suggest obtaining quotes from a minimum of three insurance companies to compare costs and coverages before you decide on a policy.
