The Cheapest and Best Homeowners Insurance in Phoenix
The Cheapest Home Insurance Companies in Phoenix
One major factor to consider while purchasing homeowners insurance in Phoenix is the cost of coverage. Most insurance companies within the city include similar coverages in their homeowners insurance policies.
On average, the cheapest homeowners insurance in Philadelphia with a dwelling coverage limit of $250,000 is from:
- ASI: $1,065 per year
- Nationwide: $1,142 per year
If you are looking for a policy for an expensive home, the cheapest providers for a dwelling coverage limit of $2,000,000 are:
- USAA: $3,935 per year (for military personnel and their families only)
- American Family: $4,873 per year
While these are average costs across the city, you may be required to pay more or less depending on your coverage amount. Costs may also change considerably based on your dwelling coverage limits. You can use the table below to compare prices across different dwelling coverage limits.
The Cheapest Home Insurance in Phoenix, Ranked
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The sample homeowners insurance coverage used by MoneyGeek in this study is a policy with a dwelling coverage base amount of $250,000 and personal property coverage of $100,000. For a policy with a dwelling coverage limit of $2,000,000, the personal property coverage limit increases to $800,000. All homeowners policies in Phoenix have $100,000 in liability coverage.
If you live elsewhere in the state, you can use MoneyGeek’s scoring system to compare homeowners insurance quotes in Arizona as a whole.
The Average Cost of Homeowners Insurance in Phoenix for 2021
How much is home insurance in Phoenix? The average cost of homeowners insurance in Phoenix for a dwelling coverage limit of $250,000 is $2,355 per year, which is higher than the state average by $373 and $252 higher than the national average of $2,103.
Calculate the Cost of Home Insurance in Phoenix
Location can have a big influence on homeowners insurance rates in Phoenix, but it is not the only factor that contributes to your premiums. Other factors like your personal property coverage amount, dwelling coverage limits and credit score also determine how much you pay.
You can use the MoneyGeek calculator to compare homeowners insurance quotes between various carriers within Phoenix.
Home Insurance Calculator
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Phoenix
While shopping around for the best homeowners insurance in Phoenix, cost should not be the only aspect to consider. You need a provider with a history of excellent customer experience and one that is highly likely to settle your claims efficiently.
MoneyGeek analyzed insurers in Phoenix based on financial stability, affordability and customer satisfaction scores. As per the study, the best insurance companies in the city for homeowners are:
- Best Overall: USAA (for current and former military members and their families)
- Runner-up: Nationwide
If you purchase a policy from USAA, you will pay less if you have a security system installed in your home or do not make claims for several years. You also get home-sharing coverage to meet the costs associated with being a landlord should you rent out your home or a room. USAA provides coverage for lost uniforms at no additional fee for policyholders who are still in active service.
USAA has perfect scores for financial stability and customer satisfaction, with a very strong score in our affordability metric as well. It is, however, limited to current and former military members and their families.Read MoneyGeek's USAA home Insurance Review
Nationwide gives homeowners Better Roof Replacement coverage so that if their roof gets damaged, the company replaces it using improved protective material. Nationwide also offers replacement cost coverage and identity theft coverage to cover your possessions and the cost of securing your data, respectively.
Nationwide also scores highly across the three criteria. While most homeowners insurance policies do not include flood coverage, Nationwide allows you to add it to your policy, as well as water backup coverage for water-related damages.Read MoneyGeek's Nationwide home Insurance Review
Cheapest Home Insurance Companies in Phoenix for Newly Constructed Homes
Owners of newly constructed homes in Phoenix pay less for homeowners insurance because they use the latest materials that are easy to replace in case of damage. The materials are also resistant to damage, meaning that homeowners are less likely to file a claim.
For new homes, homeowners insurance in Phoenix costs an average of $1,566 per year, compared to the cost of a home built in 2000, which stands at $2,355 per year.
For homeowners with a $250,000 dwelling coverage limit and a newly constructed home, the cheapest providers in Phoenix are:
- ASI: $577 per year
- Nationwide: $689 per year
The Cheapest Home Insurance in Phoenix for New Homes, Ranked
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Cheapest Home Insurance Companies in Phoenix if You Have a Lot of Personal Property
In Phoenix, your homeowners insurance covers damages to your home as well as your personal property. However, the more personal property you need covered, the more you will pay for homeowners insurance.
For instance, to get a personal property limit of $250,000, you will pay an average of $2,610 per year, compared to the $2,355 average paid for a policy with $100,000 in personal property coverage limits.
From the research carried out by MoneyGeek, the cheapest homeowners insurance providers in Phoenix for high personal property limits are:
- USAA: $1,201 per year (only available for military personnel and their families)
- ASI: $1,212 per year
Cheap Companies in Phoenix for Extra Personal Property Coverage
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Cheapest Home Insurance Companies in Phoenix for High Deductibles
The amount of money you pay out of pocket before your insurance claims get processed is what’s known as a deductible. It is one of the factors that determine how much you pay for your homeowners insurance. If your deductible is high, your monthly premiums will be lower and vice versa. For instance, a policy with a deductible of $2,000 has an average annual homeowners insurance cost of $2,055, while a policy with a $1,000 deductible costs $2,355 per year on average.
Based on MoneyGeek, the companies that provide cheap homeowners insurance in Phoenix are:
- ASI: $907 per year
- USAA: $974 per year (only available to military personnel and their families)
The Cheapest Companies in Phoenix for High Deductibles, Ranked
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Cheapest Home Insurance Companies in Phoenix if You Have Poor Credit
One of the factors that influence your homeowners insurance premiums in Phoenix is your credit score. Insurance providers charge higher rates for homeowners with poor credit scores because they are more likely to file claims.
For people with poor credit, homeowners insurance in Phoenix costs an average of $4,067 per year, while those with good credit scores pay $2,355 on average.
The companies with the cheapest coverage in the city for homeowners with poor credit scores are:
- ASI: $1,895 per year
- Nationwide: $1,897 per year
The Cheapest Companies in Phoenix for Poor Credit, Ranked
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Getting Online Homeowners Insurance Quotes in Phoenix
There’s a lot of information that you will need to put together before requesting a homeowners insurance quote in Phoenix, including:
- Home replacement cost - Insurers use this cost to determine your dwelling coverage limits. It refers to the amount of money required to rebuild your home and is different from the home’s market value. You can work with a construction professional or building contractor to calculate the costs.
- Personal property value - The value of the personal items you wish to insure helps in calculating your personal property coverage limits.
- Personal information - This includes your home address, previous insurance information, number of people living in your home and other essential information.
- Information about your house - You will need to provide information about the size of your home, the year it was built and if you have safety systems installed.
Homeowners Insurance in Phoenix Analysis: Methodology
MoneyGeek’s analysis was based on information collected in partnership with Quadrant across 13 companies in Phoenix.
The base profile is for a 2,500-square-foot home constructed in 2000, with a $250,000 dwelling coverage limit, $100,000 in personal property coverage, $100,000 in liability coverage and a $1,000 deductible.
MoneyGeek also determined affordability scores for each insurance carrier using a home with different coverage levels. Customer satisfaction scores were from J.D. Power.
About Mark Fitzpatrick