The Best Homeowners Insurance Companies in Arizona

The Best Homeowners Insurance Companies in Arizona

Finding the best homeowners insurance for your needs means striking a balance between cost, features and quality of service. After collecting thousands of quotes and reviewing benefits and discounts at a dozen major insurers, we identified a handful of providers that you should consider.

Compare Home Insurance Quotes from Providers in Arizona

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Our research found that the lowest rate in Arizona for a typical home insurance policy is $758, but it also revealed that cost is just one of several major factors that determine the value of a home insurance policy. Find out who we recommend as the best options for homeowners in the Grand Canyon State.


Best for most homeowners

State Farm logo
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Best for low rates

Nationwide logo
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Best for premium coverage

Chubb logo
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Best for military families

USAA logo
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Methodology:

Best for most homeowners: State Farm

State Farm's low rates, robust coverages and good customer service make it an ideal choice for most homes.
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Insurer details

  • Average cost in Arizona: $999
  • J.D. Power rank: 5 of 24
  • A.M. Best Financial Strength Rating: A++ (Superior)

Read our full review of State Farm

State Farm was our top all-around insurance choice for most Arizona homeowners. With an estimated annual premium of just under $1,000, State Farm offers a savings of 34% compared to the statewide average cost. This low price includes all of the standard coverages you'd expect in a home insurance policy, including personal property and liability protection.

State Farm's competitive rate on the basics leaves room in the budget for you to pick and choose any of its several extra coverages. These include protection against:

  • Water damage from backup of sewer or drains
  • Mechanical or electrical failure in home equipment
  • Service line failure or accidental breakage
  • Covered losses assessed by your homeowners association

Finally, we also gave State Farm high marks on its low complaint rates and reputation for solid claims handling. It earned an NAIC Complain Index of just 0.18, indicating that State Farm customers are far less likely to file a formal complaint than average. In addition, J.D. Power's survey-based satisfaction study gave State Farm a 4 out of 5 on categories like claims handling and transparency in the billing process.

It's not a stretch to say that State Farm's dominance in the U.S. insurance industry is a result of its ability to deliver consistently on all three fronts: cost, flexibility and service. That's why we also recommend State Farm as an overall top choice in our national home insurer picks.

Best for low rates: Nationwide

We found that Nationwide offered the lowest premium for standard homeowners insurance in Arizona.
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Insurer details

  • Average cost in Arizona: $758
  • J.D. Power rank: 15 of 24
  • A.M. Best Financial Strength Rating: A+ (Superior)

Read our full review of Nationwide

Affordability in home insurance is always important to homeowners, so it's useful to know which companies offer the best rates for you. While it's fairly standard in terms of customer service and benefits, Nationwide led the pack with the cheapest coverage among the home insurance providers we reviewed in Arizona.

On top of that, the premiums we gathered left out at least one discount opportunity that Nationwide offers to customers. This means that the premium could be even lower depending on your insurance history and property details. According to Nationwide's website, it applies discounts for:

  • Staying claims-free
  • Bundling home and auto insurance
  • Buying your home in the past 12 months
  • Renovating plumbing, A/C or electrical systems

If you're mainly concerned with securing a low premium for your home insurance policy, our research suggests that Nationwide is the place to start your search.

Best for premium coverage: Chubb

Chubb's tailored approach to home insurance delivers high-cost coverage that protects you against just about any risk.
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Insurer details

  • Average cost in Arizona: $1,469*
  • J.D. Power rank: 21 of 24
  • A.M. Best Financial Strength Rating: A++ (Superior)

Average cost doesn't reflect Chubb's minimum coverage requirements.

Read our full review of Chubb

Chubb's stellar reputation for customer service is rooted in its treatment of insurance as a "craft," with the objective of providing policies designed to fit your needs at an individual level. Practically speaking, Chubb's philosophy translates to high-priced policies that come with some unique benefits. These include complimentary home appraisal and risk consulting services, as well as a cash settlement option in case you prefer to walk away from a total loss.

The most important of Chubb's distinguishing advantages in home insurance is its extended replacement cost coverage, which pays for your home to be repaired or rebuilt to its original state even if the costs exceed your original policy limit. This coverage also protects you against the expense of upgrading to conform with new building codes in your area.

For homeowners in Arizona who worry about their exposure to wildfires, another important feature at Chubb is the Wildfire Defense Services (WDS) program. WDS offers hazard assessment and active defense using private fire professionals if a wildfire threatens your property. This service is free for Chubb home insurance customers, but you must enroll to participate.

Best for military families: USAA

Whether it's home insurance or almost any other financial service, USAA is a top choice for qualifying veterans and military personnel.
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Insurer details

  • Average cost in Arizona: $945
  • J.D. Power rank: Tied 1 of 24
  • A.M. Best Financial Strength Rating: A++ (Superior)

Read our review of USAA

Most homeowners with ties to the military have heard of USAA, which is natural considering its outstanding reputation as a financial services provider for members of the armed forces. Getting your homeowners insurance through USAA not only carries benefits in itself, but also makes it easier for you to save on other policies such as auto insurance with the company.

In our research, we saw that USAA's good name is backed by several metrics. In Arizona, USAA had an NAIC Complain Index of 0.32, which means its customers file complaints roughly one-third as often as consumers using other insurers of USAA's size. The company also carries an A.M. Best Financial Strength Rating of A++, which means it's well-positioned to handle the financial burden of claims.

USAA is also affordable relative to the competition, with an average statewide premium of $945 per year for homes in Arizona. This rate pays for replacement cost coverage as well as unique military benefits like a deductible waiver for your uniform while on active duty and personal property protection that extends into war zones.

How we chose the best home insurers in AZ

The home insurance companies we've discussed so far were evaluated in three general areas:

  • Affordability: How much does a policy cost each year?
  • Coverage options: What benefits and features do you get?
  • Customer service: How well does the provider support homeowners?

For each category, we relied as much as possible on objective facts and metrics to rank our top picks in Arizona. This included not only collecting quotes for the price of home insurance but also researching each major insurer's coverage features, satisfaction ratings and Complain Index.

Affordability

Because home insurance rates are different in every state, we started by collecting quotes from the 13 biggest home insurance providers in Arizona across almost 700 ZIP codes. More than 9,000 quotes later, we found that the average annual rate for home insurance in Arizona is $1,524.

Column graph of average homeowners insurance rates from Arizona's 13 biggest insurers
Column graph of average homeowners insurance rates from Arizona's 13 biggest insurers

Compare Home Insurance Quotes from Providers in Arizona

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Cheapest home insurance rates in Arizona

ProviderAverage annual costDifference vs. state average
Nationwide$758-50%
Travelers$765-50%
USAA$945-38%
State Farm$999-34%
MetLife$1,146-25%
Farm Bureau$1,189-22%
Liberty Mutual$1,287-16%
CSAA$1,388-9%
Chubb$1,469-4%
Farmers$1,621+6%
American Family$1,887+24%
Allstate$1,969+29%
Auto Owners$4,386+188%

To keep prices comparable, every quote used the same customer details. Our imaginary property was built in 1989 and had a value of $240,000 — the median age and value of owner-occupied housing units in Arizona, according to the latest U.S. Census data.

Our analysis used rate data obtained from Quadrant Information Services. Quadrant's rates were publicly sourced from insurer filings and should be used only for comparative purposes. The home insurance rates you see in your own quotes may be different based on the details of your property and insurance history.

Coverage options

To put the prices we collected in context, we also examined the benefits and features unique to each home insurance provider in Arizona. We focused in particular on benefits that would be relevant to dealing with risks that are specific to the state. For Arizona, this meant wildfires and flooding (in some areas).

As far as standard coverages, we assumed the following:

  • $240,000 dwelling coverage
  • $120,000 personal property coverage
  • $100,000 personal liability coverage
  • $5,000 medical expenses coverage

Our research involved diving into provider websites and online quote forms to find out how each company tried to offer unique value to customers. Standard coverages aside, we found that the best home insurance providers tended to give users the option of replacement cost coverage as well as coverage for a greater range of perils, such as water damage.

Home insurance is often seen as a commodity: Besides pricing, coverage at one company appears just as good as coverage at the next. While affordability is definitely something to look for, we think there are many long-term advantages to selecting an insurer whose policy details match your needs — even if the premium isn't the lowest around.

Customer service

The third part of our home insurance analysis in Arizona dealt with the quality of service provided by each company. While every homeowner's experience is bound to be somewhat unique, we tried to identify insurers with consistently positive track records in meeting customer expectations.

Market share rankProviderNAIC Complaint IndexJ.D. Power score
1State Farm0.184/5
2Farmers03/5
3USAA0.325/5
4Liberty Mutual0.52/5
5Allstate0.293/5
6AmFam0.323/5
7Travelers0.052/5
9CSAA1.273/5
10Chubb0.032/5
12Nationwide0.362/5
14MetLife0.422/5
15Auto Owners0.24/5
16Farm Bureau0.32N/A
NAIC Complaint Index are for each provider's largest subsidiary in Arizona. J.D. Power scores are for home insurance in 2019.

J.D. Power's consumer survey of satisfaction among home insurers was helpful in our research, but we also looked at objective measures like the yearly Complaint Index recorded by the National Association of Insurance Commissioners (NAIC). The NAIC Complaint Index is a ratio which compares the share of complaints received about an insurer versus the insurer's relative market share.

Insurance companies have many subsidiaries that write policies in different states. To make sure we were looking at data relevant to Arizona, we looked at the Complaint Index for the largest subsidiary of each insurance group.

What are the biggest home insurance perils in Arizona?

From the homeowner's perspective, wildfires pose the greatest natural risk in Arizona. That isn't to say fire is the only potential cause of damage: Flash floods, hailstorms and lightning can all lead to a home insurance claim in Arizona. Here's what you should know in order to protect your home.

Wildfires

According to data from Verisk Wildfire Risk Analytics, Arizona has the fourth-greatest exposure to potential losses from wildfire among the 50 states. The same data identified 238,000 homes at risk due to wildfires in Arizona — 8% of all housing units statewide.

While Arizona's wildfire exposure isn't nearly as severe as California's, the threat is still a significant one for homeowners who live closer to brush and undeveloped areas. Fortunately, fire is a core coverage in a standard HO-3 home insurance policy, so you’re likely insured against the threat of your home burning down.

Flooding

The last major flood event to strike Arizona on a statewide level took place in January 1993, when unusually heavy rains resulted in heavy damage around the Salt, Gila and Verde River basins. While it's improbable that such a "100-year flood" will take place on a regular basis, homeowners in Arizona should still remember a few important facts:

  • Standard home insurance almost never covers damage from a flood.
  • Over a 30-year mortgage, there's a 26% chance that a 100-year flood will occur.
  • In 2016, the average flood insurance claim payout in Arizona was $19,258.

No location anywhere has zero risk of flooding. If you're in an area where a 100-year flood (as defined by FEMA) would cause significant damage to your property, you should consider buying a separate flood insurance policy.

Arizona insurance rates: City-by-city breakdown

Our analysis of Arizona homeowners insurance costs also gave us some insight on the differences in premiums by location. The table below shows the average annual cost of coverage for homeowners in each of Arizona's 25 biggest cities, along with how that figure compares to the statewide average of $1,524.

CityAverage annual premiumDifference vs. state average
Phoenix$1,83921%
Tucson$1,418-7%
Mesa$1,6096%
Chandler$1,462-4%
Glendale$1,5522%
Scottsdale$1,5955%
Gilbert$1,460-4%
Tempe$1,6236%
Peoria$1,424-7%
Surprise$1,427-6%
Yuma$1,440-6%
Avondale$1,454-5%
Flagstaff$1,456-4%
Goodyear$1,391-9%
Lake Havasu City$1,515-1%
Buckeye$1,433-6%
Casa Grande$1,5753%
Sierra Vista$1,371-10%
Maricopa$1,5341%
Oro Valley$1,333-13%
Prescott$1,399-8%
Bullhead City$1,507-1%
Prescott Valley$1,411-7%
Apache Junction$1,5250%
Marana$1,388-9%
Chris Moon

Chris is a Product Manager for ValuePenguin with years of experience in addressing critical questions about mortgages and homeowners insurance. He spends his time evaluating insurance providers and policy features to understand where consumers might find the most cost-effective coverage. Chris has contributed insights to the New York Times and many other publications.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.