Home Insurance in Arizona


UPDATED: NOV 2020 | 1 MIN READ

Is Arizona a good state for homeowners insurance? That depends on exactly where you live. It’s a good state for people in low-risk areas who want a good deal on annual premiums. But for people who live in high-risk areas, the lack of a state FAIR program means they may have trouble finding affordable coverage. Conversely, there’s a 1 in 37 chance of becoming a victim of property crime, which is better than the national average of 1 in 24. All things considered, Arizona is firmly situated on the top 10 list of the least expensive States for homeowners insurance in America. 

  • Fun fact: the Arizona State Capitol building contains so much copper, it’s the equivalent of nearly 4.8 million pennies. 

Average Rates in Arizona

What should you expect to pay for your average annual premium if you’re an Arizona homeowner? According to the most recent data, the average annual premium for a single-family Arizona home is around $825 per year. Out of all 50 states, it’s ranked number 46 in order from the most to the least expensive – which is not a bad spot! The national average for annual premiums was $1,211 as of 2017. Just above it on this list are Washington state and Delaware; but Wisconsin and Nevada are slightly more affordable.

If you’re looking for renters insurance, Arizona residents are doing pretty well there too as far as overall costs are concerned. Although the national average for an annual renters insurance premium is $180, people who live in Arizona can expect to pay slightly less at an average of $178 annually.

Arizona Legal Insurance Requirements

What about special legal insurance requirements within the State of Arizona? Well, like most states, homeowners insurance isn’t technically required according to state or local laws. But if you currently have a mortgage on your home, your lender will most likely require you to carry some sort of coverage. Luckily, you’re currently living in a state where these annual premiums are highly affordable. So getting adequate coverage for your dwelling, property, and external structures shouldn’t be too big of a challenge. 

Common Risk Factors in Arizona

That being said, being an Arizona homeowner is not without its risks. If you live close to a natural waterway, problems with floods should always be in the back of your mind. Wildfires can also be a problem in Arizona during the hot summer months. Fortunately, Wildfire damage is covered by the vast majority of homeowners insurance policies in Arizona. Unfortunately, flooding is not. Many homeowners are surprised to know that flooding is almost never covered by private homeowners insurance policies. In order to get the best protection, you’ll have to consult the National Flood Insurance Program and talk to them about getting a policy. 

If you happen to live in an area that is particularly high risk, you may find it difficult to find a homeowners insurance policy that you can afford. Most states have something called a FAIR program which helps to provide coverage (albeit expensive coverage) to high risk homeowners who would otherwise be excluded from the market. Unfortunately, Arizona has no such program. But given the prevalence of companies in Arizona who are willing to offer coverage even in risky areas, this shouldn’t deter you from finding a policy. 

Insurance Demographics/Statistics in Arizona

Average rates, legal requirements, and environmental risk factors are just a small part of what makes up your total homeowners insurance premium. Demographics also play a very important role. Things like housing prices and crime rates also contribute towards the grand total you will end up paying for the coverage you purchase. Below is a rundown of Arizona demographic statistics that will help you figure out whether or not you’re currently paying a fair price for your annual premiums. 

  • Average home value – the average price for a home in Arizona is approximately $277,514. This is over $50,000 more expensive than the median housing prices in the US right now. The more expensive your home is, the more coverage you will need to purchase in order to repair or replace damages. So that can raise your premiums.
  • Property crime – in Arizona, you have a 1 in 37 chance of becoming a victim of property crime, at a rate of 26.77 property crimes per 1,000 residents. This is much less frequent than the national average of 1 in 24, so that’s good news! Lower crime rates mean lower annual premiums. 
  • Average income level – the average household in Arizona is bringing home $59,246 per year. That’s a little more than $2,500 less than the US household median. Having a lower income does make it harder to afford your annual premiums, so that’s something to keep in mind when you’re shopping around for quotes.
  • Education – a good chunk of Arizona residents, 29% to be exact, have a bachelor’s degree or higher. Unfortunately for Arizona homeowners, the national average is 32%. Higher rates of education correspond with things like higher credit ratings and lower crime rates, all of which are factors that usually result in lower annual premiums on your homeowners insurance policy. 

Where To Purchase Home Insurance in Arizona

Here at AgileRates.com, we realize you have a choice when it comes to where and how you shop for your homeowners insurance. You could ask for advice from friends and family, you could spend time and energy calling up local brokers in your area, or you can shop online with us. We like to believe the latter option would be the best one for you, because it saves you time and helps you find the lowest rates in your zip code more quickly and easily than doing it the old-fashioned way. We’ve helped thousands of people save hundreds off their annual premiums, and we hope to do the same for you. But no matter what, you should shop around for a better price on a relatively regular basis. Your policy is up for renewal every year, but despite this, only 44% of homeowners ever compare prices or shop around for a better deal. Fewer still do it online (17% of homeowners) despite the fact that online price comparison tools are faster and more efficient than ever before. And you have the greatest potential for saving the most money that way! Contact us today, and we can help you find free quotes, shop around, and even connect you with a friendly, local agent who is eagerly waiting to help you get the best homeowners insurance policy you’ve ever had.

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