Homeowners Insurance in Arizona
Average homeowners insurance in Arizona costs $2,108 per year. This is 16% less than the national average.
Arizona's weather is generally calm compared to nearby states like California and Colorado, but it still experiences its fair share of weather events—from extreme hot and cold temperatures to torrential rains and haboobs (sand storms).
Home insurance is essential for protecting your property and belongings, no matter where you live in Arizona. If you're a new or long-time resident seeking comprehensive Arizona home insurance coverage, Hippo has your back (we even have a Phoenix home insurance article, too).
What is the average homeowners insurance cost in Arizona?
According to Insurify data, the average cost of homeowners insurance in Arizona is $2,108 a year. This makes the Grand Canyon State the 13th cheapest place to buy home insurance in the U.S.
Arizona is home to lower premiums partly because of its low-risk levels for natural disasters and its tendency for bright, sunny days. Arizona has an average of 286 sunny days yearly and only receives about 12 inches of rain during that same timeframe.
Still, things like climate change, inflation, and rising building costs have caused premiums to creep up nationwide. This table shows how the cost of Arizona homeowner insurance has changed over the past five years:
Year | Average annual home insurance cost in Arizona |
|---|---|
2024 (projected) | $2,108 |
2023 | $1,961 |
2022 | $1,397 |
2021 | $917 |
2020 | $866 |
*Data from Insurify, the Insurance Information Institute, and QuoteWizard by LendingTree.
What factors influence my home insurance rate?
While the cost to insure a home in Arizona is relatively low, that premium can change depending on these factors:
- Home age and current condition. Older homes or those in poor condition may be more expensive to insure.
- Location. For example, if you live in a city with high property crime rates, like Coolidge or Glendale, you can expect to pay more than if you lived in Florence or Oro Valley, two of the safest cities in Arizona.
- Home size. Larger homes typically cost more to insure.
- Claims history. If you have filed home insurance claims in the past (or claims have been filed for the property you’re moving into), your insurance premium may be higher.
- Credit score. You may pay roughly 85% more for home insurance in AZ if you have poor credit instead of good credit, according to Nerdwallet data.
- Deductible. Choosing a higher deductible can lower your insurance premium.
- Insurance company. Each insurance company uses different criteria to calculate your home insurance risks, which means premiums can vary greatly from one company to the next. This is why shopping around is key to finding the best value for your home insurance in Arizona.
Common insurance discounts in Arizona
Discounts are a good way to lower your home insurance costs in Arizona. Here are a few examples of what you might find with various insurance companies. (Fun fact: All of these discounts are available at Hippo!)
- Multi-policy discount. This discount applies when you have more than one type of insurance policy with the same company. You can get a Companion Policy Discount at Hippo when you bundle your AZ homeowners policy with at least one Hippo-distributed auto policy.
- Smart home discount. This discount is for those who install smart home devices. Hippo offers customers basic Smart Home devices for free and provides a discount for activating them.
- New home discount. This discount is usually for those who have recently purchased a home. You can get Hippo's Home Buyer Discount if you bought your home within 12 months before the policy's start date.
- HOA discount. Need Arizona condo insurance? You may qualify for a discount with Hippo if you live in a qualifying homeowners association (HOA).
- Claims-free discount. Maintaining a clean claims history can lead to lower premiums. Hippo's Loss-Free Discount is available to customers who have no losses over a three- or five-year period.
Tips for lowering home insurance rates
If you're looking to lower your Arizona homeowners insurance rates, here are some steps you can take:
- Prep your home for severe weather. Although Arizona is known for its natural beauty and outdoor activities, preparing your home for potential severe weather events is essential. Installing storm shutters, reinforcing your roof, and securing loose outdoor items can help minimize damage and lower your insurance risk.
- Add smart home protection devices. Investing in smart home technology, such as security systems, smoke detectors, and water leak sensors, can provide peace of mind and qualify you for discounts on your home insurance premiums.
- Keep up with home maintenance. Regular home maintenance is crucial for keeping your insurance rates low. Updating your roof or HVAC system when needed can help your home run more efficiently and demonstrate to insurers that you're taking proactive steps to minimize risk.
- Improve your credit score. FICO estimates that 85% of home insurance companies use your credit score to calculate your rate. By paying bills on time, reducing debt, and maintaining a good credit history, you may be able to get cheaper insurance in Arizona.
- Shop around for insurance. Ideally, you want to get home insurance quotes from at least three providers in Arizona. It takes about 60 seconds to get a quote with Hippo. Bundling your home and auto insurance policies can help you take advantage of multi-policy discounts.
What does Arizona home insurance cover?
Arizona home insurance helps protect you from a variety of risks and perils. With 116 declared disasters from 1966 to 2024, Arizona residents need to have comprehensive coverage. Just as you wouldn't embark on a hike along Arizona's 800-mile National Scenic Trail without proper gear, you shouldn't leave your Spanish mission or bungalow home unprotected.
A typical AZ home insurance policy covers:
- Your home’s structure. This includes coverage for damages caused by fire, lightning, snow, windstorms, hail, and other covered events.
- Additional structures on your property. Detached garages, sheds, and fences are usually covered.
- Your belongings. Personal property coverage protects your home's furniture, clothing, electronics, and other items from theft, damage, or destruction.
- Living expenses. If you can’t live in your home after a covered event, your policy may cover temporary living expenses, like hotel stays or rental accommodations.
- Your personal liability. This coverage protects you if someone or their property gets damaged, and you’re to blame. It can help cover legal fees and medical bills.
Additional Arizona insurance coverage options
In addition to the standard coverages above, Arizona homeowners can customize their policies with various home insurance riders and add-ons. These options are particularly important given that fires and floods are the two most common natural disasters in the Copper State.
- Fire insurance. Arizona has a high risk of wildfires. While many home insurance policies cover wildfire damage, if you live in an area where wildfires are common, you may need to purchase separate fire insurance.
- Flood. Flash floods are common in Northern Arizona and other parts of the state. Standard home insurance policies typically don’t cover flood damage, so you may need to purchase separate flood insurance through the National Flood Insurance Program (NFIP) or a private company.
- Earthquake. Although not as common as wildfires or floods, earthquakes can still pose a risk to Arizona homeowners. You can purchase earthquake insurance as an endorsement or a separate policy to protect your home and belongings from earth movements.
- Mobile or modular home insurance. Mobile or modular home insurance in Arizona protects against risks unique to these homes, like wind damage and relocation costs.
- Valuable items coverage. You may need scheduled property coverage for high-value items exceeding your standard policy limits. For instance, if your policy reimburses up to $1,000 for jewelry and your diamond ring alone is worth $2,000, this add-on will help raise your limits so you’re not underinsured.
What coverage is recommended in Arizona?
You want to ensure your Arizona home insurance policy covers the basics and addresses the state's unique risks. As a homeowner in Arizona, you should consider the following coverage:
- Dwelling coverage that's equal to 100% of the cost of rebuilding your home.
- Personal property coverage sufficient to replace all of your belongings—from furniture and appliances to clothing and electronics.
- Liability coverage of at least $300,000 to $500,000 to protect your assets in case of a lawsuit.
- Additional living expenses coverage that can cover your temporary housing costs for up to 12 to 24 months while your home is being repaired or rebuilt.
Given Arizona's specific risks, it's also wise to consider adding:
- Flood insurance with coverage equal to your home's and personal property's value, especially if you live in a flood-prone area.
- Wildfire coverage that can pay for damage to your home and belongings caused by wildfires.
- Valuable items coverage with limits high enough to replace your most precious possessions, such as engagement rings, heirloom jewelry, or rare art pieces.
Insuring your home in Arizona
Following these steps and working with a knowledgeable agent can help you find the right Arizona home insurance policy.
- Estimate your needs. Determine how much coverage you need for your dwelling, personal property, liability, and additional living expenses. Consider your wildfire and flood risk, and decide if you need extra coverage for these perils.
- Shop around. Compare quotes from at least three home insurance companies in Arizona. Look for reputable insurers with strong financial backing and good customer service (like Hippo!).
- Choose a policy. Once you've found the right policy, review the terms and conditions carefully. Make sure you understand the coverage limits, deductibles, and any exclusions.
- Purchase flood insurance. There are some private flood insurance programs out there, but most flood policies are distributed by the National Flood Insurance Program (NFIP). The NFIP offers stable coverage and can’t refuse to renew your policy due to high risk. Private insurers can drop you if they choose.
- Finalize your policy. Provide your insurer with all the additional information they need, pay your premium, and your policy will go into effect on the agreed-upon date.
Get your quote now.
Is Arizona homeowners insurance required by law?
No—Arizona law doesn’t state that you need home insurance, but your mortgage lender will require it if you have a home loan. This is your lender's way of protecting their investment in your property.
Even if your home is paid off, it’s still highly, highly recommended that you have home insurance in Arizona. The average price of a home is $334,925 in Tucson, $431,906 in Phoenix, $661,369 in Flagstaff, $948,538 in Sedona, and $434,773 in Arizona as a whole.
If you do not have enough savings to fully cover the cost of rebuilding your home and replacing everything you own, you could face catastrophic losses without home insurance.
Looking for homeowners insurance in a different state?
Still have questions?
Still have questions about homeowners insurance in Arizona? We’d love to help! Chat with a Hippo insurance agent now or browse these frequently asked questions.
Why is homeowners insurance going up in Arizona?
Home insurance in Arizona keeps increasing due to climate change, inflation, and rising building repair costs. From 2023 to 2024, home insurance costs were projected to increase by 7% in Arizona and 6% nationwide. However, in cities like Phoenix, homeowners saw insurance increase by 50% to 100%.
What happens if you don't have insurance in Arizona?
If you don’t have home insurance in Arizona and face a catastrophic loss—whether from a wildfire in Maricopa County or a snowstorm in Flagstaff—you are on the hook for any and all repairs. You will not have financial help to rebuild your house, replace your belongings, or anything of that nature.
If you have a mortgage and no home insurance, your lender will force-place insurance on your behalf. Force-placed insurance is often more expensive than what you’d pay for typical AZ home insurance, and it may not cover your belongings or liability. You’re much better off shopping around and buying a policy on your own.
How much is homeowners insurance in Phoenix, Arizona?
Homeowners insurance in Phoenix, AZ, is $2,560 per year on average, according to Nerdwallet data. This is slightly above the statewide average. For comparison, homeowners insurance in Tucson, AZ, is about $1,800 per year (lower than the average statewide policy).
What is high-risk homeowners insurance in Arizona?
High-risk homeowners insurance is for Arizona homes that are more difficult to insure due to age, location, or claims history. For instance, if you live in a high-risk area for wildfires or floods, you may not qualify for a standard insurance policy.
Unfortunately, Arizona doesn’t have a Fair Access to Insurance Requirements (FAI) Plan, which provides insurance to high-risk homeowners who have been denied coverage elsewhere. But what they do have is a state insurance department to educate residents on their home insurance options.
What are some challenges one could face when trying to secure home insurance in Arizona?
You may find it challenging to get home insurance in Arizona if you’re located in an area prone to natural disasters like wildfires or flooding. Insurance companies may also be hesitant to provide coverage if your home is older or has a history of multiple claims. Also, if you have a low credit score, you may face higher rates or limited options. For instance, Nerdwallet data found that Arizona home insurance costs 85% more (around $3,940 per year) if you have poor credit versus good credit.
