Arizona homeowners benefit from rates 25% below the national average. Your specific premium depends on location, home characteristics and coverage choices, with costs varying across cities from Tucson to Flagstaff based on local risk factors.
Average Home Insurance Cost in Arizona
Updated: January 7, 2026
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Key Takeaways: Arizona Home Insurance Rates
Arizona home insurance costs average $217 a month or $2,602 a year, ranking as the 22nd most expensive state for homeowners coverage.
Determine your coverage needs, gather multiple quotes and research providers to find the best home insurance in Arizona for your situation.
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How Much Is Home Insurance in Arizona?
You'll pay $2,602 per year on average for home insurance in Arizona, or $217 each month. While that lands Arizona at 22nd among the most expensive states, residents still come out ahead of the national average by saving $865 annually more than other states.
| Arizona | $2,602 | $3,467 | -25% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Jan 28, 2026
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What Affects Average Arizona Home Insurance Costs?
Multiple variables shape what you'll pay for Arizona home insurance. Insurers start with your ZIP code and home construction details, then factor in how much coverage you're buying. They'll also check your credit score, review your claims track record and apply their company's pricing model to reach your premium.
Average Arizona Home Insurance Cost by City
Arizona cities see different insurance pricing based on local risk factors. Property values in your area matter, as does the typical age of neighborhood homes. Weather patterns, whether you're dealing with Phoenix heat or northern Arizona hail, also drive rate differences across the state.
| Buckeye | $189 | $2,271 |
| Chandler | $203 | $2,430 |
| Dennehotso | $223 | $2,671 |
| Fort Defiance | $296 | $3,549 |
| Gilbert | $202 | $2,422 |
| Glendale | $207 | $2,488 |
| Mesa | $216 | $2,597 |
| Peoria | $200 | $2,400 |
| Phoenix | $233 | $2,792 |
| Prescott Valley | $193 | $2,322 |
| Scottsdale | $227 | $2,721 |
| Surprise | $185 | $2,219 |
| Tempe | $231 | $2,776 |
| Tucson | $200 | $2,405 |
Average Arizona Homeowners Insurance Pricing by Coverage Level
Annual premiums in Arizona span from $1,571 to $7,354, a range driven by coverage choices. Higher limits and lower deductibles push costs up. If you're looking for affordable rates, choose lower coverage amounts or opt for higher out-of-pocket deductibles.
| $100K Dwelling / $50K Personal Property / $100K Liability | $131 | $1,571 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $217 | $2,602 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $348 | $4,181 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $473 | $5,674 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $613 | $7,354 |
Average Cost of Arizona Home Insurance by Company
The home insurance provider you choose can make or break your Arizona home insurance budget. State Farm averages $1,334 annually, while Travelers costs $6,714, which is around five times higher for comparable coverage. That's a $5,380 annual difference based solely on which company you choose.
| State Farm | $111 | $1,334 |
| USAA | $138 | $1,655 |
| American Family | $162 | $1,938 |
| Farmers | $169 | $2,023 |
| Nationwide | $174 | $2,089 |
| Allstate | $210 | $2,520 |
| Auto-Owners Insurance | $212 | $2,540 |
| Travelers | $559 | $6,714 |
Arizona Homeowners Insurance Costs by House Age
Newer Arizona homes come with substantial insurance discounts. A 2020-built property costs $1,647 annually to insure compared to $2,777 for a 1980s home. That $1,130 annual difference reflects lower risk and more updated systems in recent construction.
| Newer | $137 | $1,647 |
| Middle Age | $217 | $2,602 |
| Older | $231 | $2,777 |
Average Arizona Home Insurance Cost by Credit Score
Credit scores directly impact home insurance costs in Arizona. Insurers view higher credit scores as lower risk and charge less. Annual rates range from $1,025 to $4,367 based on your credit profile.
| Excellent | $85 | $1,025 |
| Good | $217 | $2,602 |
| Below Fair | $273 | $3,282 |
| Poor | $364 | $4,367 |
Why Is Home Insurance So Affordable in Arizona?
Arizona home insurance costs $865 less than the national average annually, making it 25% more affordable than most states. Several factors contribute to these competitive premiums.
Lower Catastrophic Risk Compared to Coastal States
Arizona avoids hurricanes, tropical storms and coastal flooding that devastate properties in Gulf Coast and Atlantic states. The state recorded only 34 weather or climate disaster events with losses exceeding $1 billion between 1980 and 2024, according to the National Centers for Environmental Information, which is below Florida's 94 or Alabama's 116 events during the same period. This reduced exposure to billion-dollar natural disasters keeps claim payouts lower and premiums more affordable.
Moderate Earthquake Activity
Unlike California, Arizona experiences minimal seismic activity that would trigger costly structural damage claims. FEMA reports Arizona has a relatively low earthquake hazard rating compared to neighboring California, where major seismic events create billions in insured losses. This geological stability reduces insurers' risk calculations and keeps Arizona premiums competitive.
Competitive Insurance Market
Arizona's insurance market features strong competition among major carriers. The Arizona Department of Insurance and Financial Institutions notes that there are around 100+ admitted home insurance companies in the state, creating competitive pricing pressure that benefits consumers. More carrier options mean homeowners can shop aggressively for better rates compared to states with limited insurer participation.
Tips to Save on Arizona Home Insurance
Home insurance costs tend to run higher in the state, which makes finding the cheapest home insurance in Arizona an important priority. These proven strategies can help lower premiums whether you’re buying a new policy or managing existing coverage.
- 1Calculate Coverage Needs
Determine your home's replacement cost based on current construction prices, not market value. Create an inventory of belongings to establish personal property coverage needs. Arizona homeowners in Phoenix and Tucson should consider add-ons like water backup coverage and scheduled personal property protection for valuable items like jewelry or electronics.
- 2Research Rates and Discounts
Use MoneyGeek's Arizona home insurance calculator to estimate fair pricing for your location, home age and size. Ask insurers about available discounts when gathering quotes. Arizona residents can save through security system discounts, claim-free history rewards and protective device installations like smoke detectors or storm shutters.
- 3Compare Multiple Providers
Collect quotes from at least three insurers, evaluating more than just price. Review customer satisfaction ratings, claims service quality and financial strength ratings. A lower premium from Flagstaff to Yuma may cost more long-term if the company provides poor service or slow claims processing when you need coverage most.
- 4Bundle Home and Auto
Combine home and auto insurance with one provider to reduce rates on both policies. Arizona homeowners usually save 10% to 25% through bundling discounts. Compare bundled rates from multiple insurers, as some companies offer especially competitive multi-policy savings that can reduce your total insurance costs in Scottsdale and surrounding areas.
- 5Lower Your Risk Profile
Install safety features like security systems, smoke detectors and storm shutters to qualify for premium reductions. A claim-free record saves you $414 to $762 annually compared to filing claims. Improving your credit from below fair to good cuts costs by about 21% in Arizona, so Mesa homeowners should work on credit management if they want lower rates.
Calculate Arizona Homeowners Insurance Costs: FAQ
Arizona homeowners insurance costs depend on factors specific to your property and location. These FAQs address common questions about home insurance expenses and what affects your premium rates.
How much will my premium increase after filing a claim in Arizona?
In Arizona, your homeowners insurance premium jumps by $414 after one claim and $762 after two claims compared to claim-free customers. Arizona homeowners who haven't filed claims in five years pay $2,602 annually on average. One claim pushes that cost to $3,016 per year. Two claims will cost you $3,364 annually. Claims stay on your record for five years, so you'll pay these higher rates throughout that entire period.
How much can I save by choosing a different insurer in Arizona?
Shopping around for home insurance in Arizona can save you thousands of dollars annually. The price differences between companies are substantial: State Farm offers the most affordable coverage at $111 per month, while Travelers charges $559 monthly for similar protection.
Even mid-tier insurers show major gaps. Farmers costs $169 monthly compared to Nationwide at $174, creating a $5 monthly difference. These variations add up quickly over a year. Compare quotes from at least three insurers to find the best rate for your situation.
Does home insurance in Arizona cover tornado damage?
Yes, standard home insurance policies in Arizona cover tornado damage to your dwelling, other structures and personal property. Your policy covers wind damage from tornadoes, including roof damage, broken windows and destroyed structures. However, you'll need to pay your deductible before coverage kicks in.
Tornado damage falls under the windstorm coverage in your homeowners policy. This means your insurance company will pay for repairs or replacement of damaged property after a tornado hits your home. The coverage applies to your main house, detached garages, sheds and fences.
Your personal belongings inside your home also get protection from tornado damage. This includes furniture, electronics, clothing and other items damaged by wind or debris. Most policies cover personal property at 50% to 70% of your dwelling coverage amount.
Keep in mind that flood damage from tornadoes requires separate flood insurance. Standard home insurance doesn't cover water damage from flooding, even if a tornado causes it. You'll need a separate flood policy through the National Flood Insurance Program or a private insurer.
Why does home insurance cost more for older homes in Arizona?
Home insurance premiums in Arizona climb as your property ages. Older homes cost 69% more to insure than newer ones. That's a gap of $1,130 per year that hits homeowners hard.
Newer homes average $1,647 annually for coverage. Older homes run about $2,777 per year. Middle-aged homes land in between at $2,602 annually.
Insurers charge more for older properties because aging systems break down. Outdated electrical wiring catches fire. Deteriorating plumbing springs leaks. Worn roofing gives out during storms. Plus, fixing an older home costs more. You need specialized parts and construction methods that aren't standard anymore.
How does filing multiple claims affect my rates in Arizona?
Each claim you file can lead to higher premiums. Arizona homeowners with clean records pay $2,602 annually on average. Your first claim adds $414 to that base rate, bringing costs to $3,016 yearly. A second claim pushes premiums to $3,364 annually, creating a $762 increase from your claim-free baseline. These rate increases stay on your record for five years from each claim date, meaning you'll pay elevated premiums throughout that period.
How We Analyzed Arizona Home Insurance Rates
MoneyGeek calculated Arizona home insurance estimates using real premium data from major insurers. Our analysis creates a fair comparison by using consistent baseline factors across all rate calculations.
We built our estimates around a standard homeowner profile: $250,000 dwelling coverage, $125,000 personal property coverage, $200,000 liability coverage, and a $1,000 deductible. The model assumes a home built in 2000 with frame construction, composition roof, and no insurance claims filed in the past five years.
This profile matches typical Arizona homeowners and reflects median home values across many state markets. The 2000 construction year represents the most common home age category, making our analysis relevant to a broad range of residents.
Our methodology isolates how individual factors affect your premium. When testing home age impact, we compared identical policies for homes built in 1980, 2000, and 2020 while keeping all other variables the same. This approach shows the true cost difference each factor creates.
Your actual premium will vary depending on your specific home characteristics, location, coverage choices, claims history, credit score, and chosen insurance company. These rate comparisons demonstrate how much each variable influences your final cost.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- National Centers for Environmental Information. "Arizona Billion-Dollar Disaster Events 1980-2024." Accessed January 28, 2026.
- Federal Emergency Management Agency (FEMA). "Earthquake Hazard Maps." Accessed January 28, 2026.
- Arizona Department of Insurance and Financial Institutions. "State of Homeowners Insurance (Spring 2025)." Accessed January 28, 2026.