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.
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.
Allstate Homeowners Insurance Discounts
Allstate offers a total of eight discounts for Arizona homeowners who want to save money on their insurance.
- Bundling. Pair your homeowners insurance with one additional policy with Allstate to save.
- Claims free. Get a break on your premium if you have no recent homeowners claims.
- Welcome. You’ll get a 10% discount for switching your homeowners insurance to Allstate.
- Early signing. Get a discount if you sign your new Allstate policy a week or more before your current policy expires.
- Protective devices. You’ll get a discount if you have installed anti-theft or fire protection devices.
- New homeowner. New home buyers and those who purchase newly constructed homes can get this discount.
- New roof. Installing a new roof can save you money.
- Responsible payer. Earn this discount by paying your premiums on time.
Allstate Homeowners Insurance Pros & Cons
- Allstate has received top ratings for its financial stability.
- The company website is easy to navigate.
- Adding HostAdvantage coverage will protect you if you rent or share a home.
- With the Rate Guard option, you can lock in your quote ahead of time.
- Endorsement options include digital identity tracking, yard & garden repairs, guest medical coverage, and recovery of stolen electronic data.
- Allstate has a higher-than-usual number of customer complaints.
- Their average premium for Arizona is higher than some of the other companies on this list.
- Replacement cost coverage does not come standard with Allstate’s policy.
|J.D. Power (out of 1,000)||815|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.05|
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.
State Farm Homeowners Insurance Discounts
State Farm doesn’t offer as many discounts as the other companies on our list but they make up for it by offering substantial savings for policy bundling.
- Bundling. State Farm policyholders who buy both homeowners and auto insurance can save up to $1,127 per year.
- Home security. Get a discount if you have installed burglar, smoke, or fire alarms or a home monitoring system.
- Roofing. Get a break on your premium if you replace your current roof with impact-resistant materials.
State Farm Homeowners Insurance Pros & Cons
- State Farm has received top financial and customer service ratings.
- Expanded and Premium coverage provide protection for water backup, equipment malfunctions, and replacement of high-value items such as precious metals, jewelry, and furs.
- You can buy up to $1 million of coverage for your personal liability.
- The company’s mobile and online services are well-regarded and user friendly.
- Every homeowners insurance policy comes with free information about catastrophe protocols & emergency services.
- State Farm offers only three homeowners insurance discounts.
- Higher coverage limits may put your annual premium above the company’s average for Arizona.
|J.D. Power (out of 1,000)||829|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||1.77|
Chubb: Best for Wildfire Protection
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.
Chubb Homeowners Insurance Discounts
Homeowners in Arizona can save with six discounts.
- Claims-free. Save up to 10% if you’ve gone three or more years without a claim.
- Backup generator. Get a discount if you install a permanent backup generator.
- Policy bundling. Bundle your homeowners insurance with auto or life insurance to save up to 10%.
- New/renovated home. Save up to 17% on a newly renovated home and up to 24% on a newly constructed home.
- Fire & security. Get this discount if you have installed fire alarms, sprinklers, security systems, or fire-resistant construction.
- No mortgage. Get a 10% discount when you pay off your mortgage.
Chubb Homeowners Insurance Pros & Cons
- Chubb offers policies that protect Arizona homeowners against damage caused by wildfires and other natural disasters.
- Chubb’s policy provides protection for high-value homes.
- Chubb will pay to rebuild your home even if the cost is higher than your policy limit.
- There’s a cash-out option that allows homeowners to take a payout rather than rebuilding.
- Six discounts can help you save on your premium.
- Special coverage options include water backup coverage, ID theft protection, and replacement cost of your belongings.
- There is only one type of policy available and the limits may be too high for some homeowners.
- Quotes are not available online and must be obtained through an agent.
|J.D. Power (out of 1,000)||809|
|A.M. Best - Financial Strength Rating||A++|
|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.
Farmers Homeowners Insurance Discounts
Arizona homeowners can take advantage of up to four discounts with Farmers.
- Bundling. Save money by buying two or more policies from Farmers.
- No smoking. Farmers is the only company on our list to offer a discount for non-smokers.
- Security. Save money with an installed fire alarm that communicates with the local fire department or a security system with an outside signal that alerts local police.
- Claims free. If you’re claims-free for three years, you can claim this discount.
Some locations also offer discounts for first responders, medical professionals, military members, teachers, and engineers.
Farmers Homeowners Insurance Pros & Cons
- Farmers Insurance offers tiered coverage to allow you to customize your policy.
- Go five years without a claim and Farmers will guarantee that your premium won’t go up the next time you have a claim.
- You can earn as much as $50 per year with Farmers’ declining deductible option, which automatically reduces your deductible.
- Farmers has excellent customer service thanks to its network of agents.
- You can’t get quotes online, only through a Farmers agent.
- Customer service is not available 24/7.
|J.D. Power (out of 1,000)||792|
|A.M. Best - Financial Strength Rating||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.
Nationwide Homeowners Insurance Discounts
As we mentioned, Nationwide offers a total of 9 discounts for homeowners insurance, many of which can be layered to save money.
- Policy bundling. You can save money if you buy two or more policies with Nationwide.
- Protective devices. You'll qualify for a discount if your home has installed burglar alarms, fire alarms, or smoke detectors.
- Claims-free. You can get a break on your premium if you have never filed a homeowners insurance claim.
- Prior insurance. New Nationwide policyholders can get a discount based on how long they were with their previous insurance company.
- Smart home. Install smart home technology to get this discount.
- Gated community. You’ll get a break on your premium if you live in a gated community.
- Roof rating. Some homeowners may qualify for a discount based on the age and condition of their roof.
- Home renovation. Update your home’s plumbing, HVAC, or electrical systems to save.
- New home purchase. You'd get this discount if you purchased your home within one year of buying your policy.
Nationwide Homeowners Insurance Pros & Cons
- Nationwide offers a total of 9 discounts that can be layered to maximize your savings.
- There are special discounts and coverages available to allow homeowners to upgrade their roof as well as HVAC, electrical, and plumbing systems.
- Nationwide offers standard coverage that would cost more with other insurance carriers.
- The company has excellent customer service and a network of local agents.
- Filing claims can be done online in just a few clicks.
- Nationwide’s mobile app is not as good as it could be because it was originally designed for auto insurance.
- Nationwide does not offer homeowners insurance for mobile or manufactured homes.
|J.D. Power (out of 1,000)||816|
|A.M. Best - Financial Strength Rating||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.
Auto Owners Homeowners Insurance Discounts
Auto-Owners offers an impressive array of discounts, including several that most Arizona homeowners can use to save on their premium.
- Policy bundling. Buy two or more policies to save.
- Advance quote. Buy your Auto-Owners policy before your existing policy expires to save
- Automatic backup generator. Get a discount if you have an installed backup generator.
- Pay in advance. Pay your annual premium in advance to save–does not apply to escrow direct billing.
- Pay on time. Pay your premium on time for 36 months to get this discount.
- Paperless. Save on your premium if you sign up for paperless billing and policies.
- Protective devices. Install fire or burglar alarms to save.
- Water shut-off. Save if you install an automatic water shut-off in your home.
Auto Owners Homeowners Insurance Pros & Cons
- The company has excellent customer service ratings and reviews.
- There are nine potential discounts to help you save, including many that are easy to qualify for.
- Quotes are only available through agents and may not be obtained online.
- Auto-Owners’ mobile app could use some improvement.
|J.D. Power (out of 1,000)||874|
|A.M. Best - Financial Strength Rating||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.
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.
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.
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 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.
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.
The coverage limit you need will depend upon the appraised value of your home, with more expensive homes costing more to insure.
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.
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.
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
- 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.
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.