The Best and Cheapest Renters Insurance in Arizona for 2021: Rankings, Reviews and Rates
For those focused on both cost and quality, MoneyGeek rated the best renters insurance providers across Arizona to help you find the right insurer. MoneyGeek’s scoring system analyzed the customer support quality, financial strength and prices of carriers in Arizona to determine the best options for you.
The most affordable renters insurance in Arizona is priced at just $8 per month on average, compared to $20 a month or more for a policy from the costliest provider. This means you could save up to $150 per year just by shopping around.
Customers typically look to save money while purchasing a renters insurance policy. In Arizona, the two cheapest providers are Lemonade and USAA, as they both have average rates of $8 per month or $90 a year. USAA’s services are only available for military members and their families, but its policies offer excellent value as they include replacement cost coverage. The next most affordable provider is State Farm, with an average yearly rate of $100.
MoneyGeek computed the average annual and monthly rates of renters insurance companies in Arizona for policies that offer personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500. The prices are based on multiple ZIP codes across Arizona.
Personal Property Coverage:
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Best Renters Insurance Companies in Arizona
Other than finding great prices, most customers want a carrier that they know will rapidly and fairly pay out their claims. To select the best renters insurance companies in Arizona, MoneyGeek ranked companies on three factors: customer service scores from J.D. Power and Associates, financial stability ratings from AM Best and unique pricing data.
Based on these criteria, State Farm is the best widely available insurance company in Arizona, with a score of 94 out of 100. USAA received a perfect score, but you'll only qualify for a policy if you're a current or former member of the military.
More About USAA
A standout feature of USAA's plans is the inclusion of earthquake and flood coverage in the standard package. Customers also have the choice to exclude personal property or personal liability coverage in their policy. USAA members can get benefits like travel deals and car rental discounts.
More About State Farm
Optional State Farm coverages include incidental business liability, additional business property, earthquake damage, identity restoration and additional liability.
State Farm offers more coverage features than most other providers, and their monthly rates are close to the industry average.
More About Allstate
Allstate shoppers can add optional coverage such as personal umbrella insurance, flood insurance, identity restoration coverage and scheduled personal property.
Allstate stands out for its discounts, high claims satisfaction, excellent financial strength and useful online resources and tools.
More About American Family
Apart from standard renters insurance coverage, American Family offers add-ons such as bicycle coverage, home-based business coverage, travel protection, pet insurance and identity theft protection.
American Family differentiates itself with its competitive prices, a wide range of insurance options and solid customer ratings.
More About Lemonade
Lemonade's basic coverage includes insurance against damage from vandalism, theft, burst pipes or fire. Add-on coverages include extra protection for electronic devices and earthquake and water backup coverage.
Pros of Lemonade's coverage are low premiums, customizable policies and quick claim processing.
Largest Renters Insurance Companies in Arizona
The following insurance companies have the highest market share in Arizona: State Farm (17%), Farmers (12%), USAA (9%), Liberty Mutual (9%) and American Family (9%). It’s advisable to buy a renters insurance policy from a large and reliable provider, as it is more likely to be financially stable and efficiently pay claims.
Average Cost of Renters Insurance in Arizona
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The yearly average price of renters insurance in Arizona is $147, which is $12 cheaper than the U.S. average of $159. These costs are for a plan that includes personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
You can compare renters insurance quotes to find the cheapest provider for your needs. In Arizona, you can save about $150 a year by opting for the most affordable carrier, Lemonade, over the most expensive company, Travelers.
What Factors Impact Renters Insurance Cost in Arizona
The following important factors play a large role in determining your average renters insurance cost in Arizona:
Credit Score: Carriers consider your credit score while calculating your premium. They have assessed that people with poor credit scores are more likely to file claims. Therefore, they charge these drivers higher rates. On the other hand, if your credit score is strong, you can qualify for discounts.
Replacement Cost Value (RCV) vs. Actual Cash Value (ACV): RCV packages cover the costs of a new item of the same type and quality. ACV plans calculate your property’s depreciation over time, so they pay less for your used items. RCV policies are costlier, but their claim payouts are higher, while ACV packages are cheaper because they don’t pay out as much.
Deductible: The deductible is the cost you have to pay to get your claim paid. Policies with higher deductibles have lower premiums, as you need to pay more out of pocket for a claim.
Coverage Amount: If you opt for additional coverage features, your renters insurance premium will be higher.
Location: Areas with higher crime rates and more dangerous weather events have higher renters insurance premiums.
Renters Insurance in Arizona: What You Need to Know
Buying renters insurance is smart because it is an inexpensive way to safeguard your property from unexpected disasters. In Arizona, the average rent price is $1,101 per month, and about 34% of residents are renters. Meanwhile, the average monthly renters insurance premium is $12 for a standard policy with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible. In other words, renters insurance costs about 1% of monthly rent payments in this state.
What Renters Insurance Typically Covers in Arizona
Prospective customers should understand what their renters insurance plan in Arizona covers before they buy it. A standard package covers personal property, medical payments, additional living expenses and liability insurance.
In Arizona, personal property insurance generally covers damages caused by extreme weather events like tornadoes, wildfires and more.
What Renters Insurance Typically Does Not Cover in Arizona
The following items and events are typically not covered by renters insurance:
Expensive Items: High-end and valuable items are normally excluded. You’d have to buy add-on coverage to protect them.
Roommate Property: Your roommate has to get their own renters insurance coverage, as your policy does not protect their property.
Structural Damage: Damage to the property’s frame and structure is not covered, but this is your landlord’s responsibility anyway.
Earthquake Damage: Usually, renters insurance does not include earthquake coverage, and a rider is needed to cover this event.
Flooding: Insurers typically exclude flooding due to natural disasters. If you’re concerned about flooding in your area, you can get flood insurance through the National Flood Insurance Program (NFIP).
Before paying for your policy, read the details and get clarifications from the provider on what exactly is covered. This can help you make successful claims when needed.
FAQs About Renters Insurance in Arizona
Renters insurance is not a legal requirement in Arizona, but many landlords stipulate it in their lease contract.
Though it’s not legally compulsory, it’s smart to get renters insurance, as it offers protection for your valuable property at an affordable rate.
Yes, landlords in Arizona have the right to ask for proof of a renters insurance policy from tenants.
As per MoneyGeek’s research, $12 is the average monthly cost of an insurance policy for $20,000 in personal property coverage and $100,000 of liability coverage.
Lemonade is the most affordable renters insurance provider in Arizona. Its policy costs an average of $8 per month or $90 a year.
Renters Insurance in Arizona Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from nine of the top insurance companies in Arizona, provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Arizona. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
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