Best and Cheapest Home Insurance Companies in Arizona (2026)
State Farm has the cheapest home insurance quotes for most people in Arizona, at $1,084/yr on average. | ||
Arizona home insurance costs an average of $2,225/yr, which is $167 per year less than the national average. | ||
The most expensive cities in Arizona for home insurance are typically mountain towns with a high risk of wildfire damage. Home insurance quotes in these cities can climb to nearly $3,000/yr. |
State Farm has the cheapest home insurance quotes for most people in Arizona, at around $1,084/yr. | ||
Home insurance in Arizona costs an average of $2,225/yr. But mountain towns with high wildfire risk have average rates of nearly $3,000/yr. |
Find Cheap Home Insurance Quotes in Arizona
Who has the best cheap home insurance in AZ?
Who has the cheapest home insurance in AZ?
State Farm has the cheapest home insurance rates in Arizona for most people.
Find Cheap Home Insurance Quotes in Arizona
- State Farm charges an average of $1,084 per year for a home insurance policy with $350,000 of dwelling coverage in Arizona. That's half the statewide average.
- State Farm is also the cheapest company for people with high-value homes. A policy with $1 million of dwelling coverage costs around $1,935 per year from State Farm, which is 61% cheaper than average.
- However, Progressive tends to have cheaper rates for brand new homes, at around $449 per year for $350,000 of dwelling coverage.
Best cheap homeowners insurance in AZ by dwelling coverage amount
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| State Farm | 3.5 out of 5 | $807 | |
| Farmers | 2.8 out of 5 | $1,399 | |
| Progressive | 3.5 out of 5 | $1,439 | |
| Auto-Owners | 3.0 out of 5 | $1,712 | |
| American Family | 2.8 out of 5 | $1,744 | |
Key takeaways
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State Farm isn't just the cheapest company in Arizona, its rates also tend to be fairly stable.
In Arizona, State Farm's home insurance rates have gone up by about 25% in the past five years. That's a much lower rate hike than the second-cheapest company, Progressive, where rates went up by around 40% in the same time period.
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Arizona home insurance rates have gone up by nearly 66% in the past five years — much higher than the national average of 48%.
This could be in part because of Arizona's high wildfire risk. Arizona has the fifth-highest number of homes with a moderate or greater risk of wildfire damage in the country.
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Arizona homeowners in high-risk mountain and forested areas tend to pay significantly more than those in desert communities.
Cities like Elgin and Munds Park have average rates close to $3,000 per year, while places in southwest Arizona, like San Luis and Somerton, average closer to $1,700 per year.
Best home insurance in Arizona for most people: State Farm
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Annual cost$1,084Average rate for a $350,000 home
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Monthly cost$90Average rate for a $350,000 home
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AverageCustomer complaints
Best insurance company for new homes in AZ: Progressive
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Annual cost$449Average rate for a $350,000 home built in 2025
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Monthly cost$37Average rate for a $350,000 home built in 2025
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AverageCustomer complaints
Insurance quotes for new homes in Arizona
Company | Annual rate | ||
|---|---|---|---|
| Progressive | 3.5 out of 5 | $449 | |
| State Farm | 3.5 out of 5 | $671 | |
| Farmers | 2.8 out of 5 | $1,073 | |
| American Family | 2.8 out of 5 | $1,183 | |
| Allstate | 2.5 out of 5 | $1,296 | |
Rates are for homes built in 2025 with $350,000 of dwelling coverage.
Best homeowners insurance for luxury homes in AZ: Chubb
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Cost for a $500,000 home$2,496/yrAverage rate for a $500,000 home
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Cost for a $1 million home$4,557/yrAverage rate for a $1 million home
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LowCustomer complaints
Top-rated Arizona home insurance companies
USAA has the best customer service for home insurance in Arizona.
USAA earned top marks from ValuePenguin editors for combining cheap quotes, good coverage options and highly rated customer support. However, USAA is only available to military members, veterans and their families.
Chubb, State Farm and Progressive are the best insurance companies in Arizona for homeowners who don't qualify for USAA. These companies have reliable customer service and affordable rates. But Chubb typically only insures high-value homes, so not everyone can get a policy.
Arizona home insurance company reviews
Company |
Rating
|
Complaints
|
|---|---|---|
| USAA | 4.5 out of 5 | Low |
| Chubb | 4.5 out of 5 | Low |
| Progressive | 3.5 out of 5 | Average |
| State Farm | 3.5 out of 5 | Average |
| Auto-Owners | 3.0 out of 5 | Low |
What is the average cost of homeowners insurance in AZ?
The average cost of homeowners insurance in Arizona is $2,225 per year.
That's 7% cheaper than the national average of $2,395 per year.
Average cost of home insurance in AZ by dwelling coverage amount
Dwelling coverage | Average rate |
|---|---|
| $200,000 | $1,564 |
| $350,000 | $2,225 |
| $500,000 | $2,860 |
| $1,000,000 | $4,961 |
Homeowners insurance in Arizona is fairly average compared to other Southwestern states. Home insurance in Colorado is much more expensive because it has more frequent severe storms and billion-dollar disaster events. Nevada and Utah are cheaper than Arizona because they have fewer large loss events from wildfires or flooding.
Homeowners insurance quotes in Arizona by city
The cheapest city in Arizona for home insurance is San Luis, a small city in Yuma County along the Mexico border.
Homeowners in San Luis pay an average of $1,733 per year for insurance.
The most expensive town for home insurance is Elgin, a small community southeast of Tucson, where coverage costs $2,977 per year. This could be because homes in Elgin are at a very high risk of wildfire damage.
Find Cheap Home Insurance Quotes in Arizona
Cost of AZ home insurance by city
City | Average rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Aguila | $1,877 | State Farm | $1,070 |
| Ajo | $1,994 | State Farm | $992 |
| Ak-Chin Village | $2,139 | State Farm | $1,118 |
| Alpine | $2,408 | State Farm | $1,070 |
| Amado | $2,081 | State Farm | $1,093 |
Rates are for a policy with $350,000 of dwelling coverage.
Home insurance in Phoenix, AZ — the largest city in the state — costs an average of $2,438 per year. That's 10% more expensive than the state average.
Homeowners insurance in Tucson, the second-largest city, is 8% cheaper than the state average, at $2,046 per year.
What home insurance do I need in Arizona?
Wildfires pose the greatest natural risk for Arizona homeowners, so it's important to have a policy that covers wildfire damage.
Flash floods, hailstorms and lightning are also common in parts of Arizona.
Does AZ home insurance cover wildfires?
Most basic homeowners insurance policies pay to fix fire and smoke damage.
However, if your home is in an area with a big risk of wildfire damage, your insurance company may exclude wildfire coverage from your policy. In that case, you should buy a separate fire insurance policy.
The five Arizona counties with the most homes in high-risk wildfire areas are:
- Gila
- Navajo
- Greenlee
- Apache
- Coconino
While Arizona doesn't have as many wildfires as California, they're still a major threat, especially for homes in dry areas near brush and undeveloped deserts.
Around 22% of buildings in Arizona are considered at high or moderate risk for wildfire damage, according to Verisk. This is significantly higher than in California, where only 15% of structures are at a high to moderate risk of wildfire damage.
Does home insurance in AZ cover flooding?
Standard home insurance does not cover flood damage. Parts of Arizona are at risk for flash flooding with heavy rainfall, especially places near a river or wash.
Flood damage can be extremely costly. In the past five years, the National Flood Insurance Program (NFIP) paid over $9.6 million in flood damage claims across Arizona. That's an average of $39,112 per claim.
If you live in an area where a flood would cause major damage to your property, you should consider buying a separate flood insurance policy.
How to get cheaper home insurance in Arizona
There are three main ways to get cheaper home insurance in Arizona: compare quotes, qualify for discounts and change your coverage.
There's a difference of over $2,000 per year between Arizona's cheapest and most expensive home insurance companies. That's why it's important to shop around for quotes every year or two. | |
You'll typically get the largest discount for bundling your home insurance with a cheap auto insurance policy in Arizona. And if your home is a new build, both Progressive and American Family offer discounts based on the age of your home. | |
A higher deductible means the insurance company will pay you less money to fix your damaged home. It's important to choose a deductible you can easily pay in an emergency. You can also lower your coverage limits and get rid of any coverage extras you may not need. However, make sure your limits are high enough to cover the cost of rebuilding your home and replacing your belongings if you have a major accident. |
Arizona surging home insurance costs
Home insurance prices have gone up nearly 66% in Arizona in the last five years.
The largest increase was in 2023, when rates skyrocketed up 22.63%. However, rates have begun to level out, with an increase of only 3.48% in 2025.
How much has home insurance gone up in AZ over the past five years?
Year | Avg. rate increase |
|---|---|
| 2021 | 3.80% |
| 2022 | 10.13% |
| 2023 | 22.63% |
| 2024 | 14.18% |
| 2025 | 3.48% |
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Arizona saw big jumps in its home insurance rates primarily because of an increase in wildfires.
State Farm rates went up the least among larger companies, at just 25% over the last five years. Prices have more than doubled at American Family. Homeowners insurance with Farmers and Nationwide also saw rate hikes of around 95% over this period.
Frequently asked questions
How much is homeowners insurance in Arizona?
The average cost of homeowners insurance in Arizona is $2,225 per year. That makes the average monthly rate around $185 per month. This is 7% cheaper than the national average cost of home insurance, $2,395 per year.
What is the best homeowners insurance company in Arizona?
State Farm offers the best and most affordable homeowners insurance in Arizona, at around $90 per month. That's around half the Arizona state average of $181 per month.
What is the best home and auto insurance bundle in AZ?
Progressive and State Farm are the best companies for bundling your home and auto insurance in Arizona. Both companies offer affordable home insurance rates in the state, along with cheap car insurance quotes. It's smart to compare quotes from both companies to see which has the best rate for you.
How much does homeowners insurance in Phoenix, AZ cost?
The average cost of home insurance in Phoenix is $2,438 per year. But you could pay less than half that amount at State Farm, where the same policy costs around $1,158 per year.
How much is home insurance in Tucson, AZ?
Homeowners insurance in Tucson costs an average of $2,046 per year for a policy with $350,000 of dwelling coverage. State Farm is the cheapest home insurance company in Tucson, at around $1,009 per year.
Methodology
To find the best homeowners insurance in Arizona, ValuePenguin collected quotes from the top companies across every residential ZIP code in the state. Rates are for a 45-year-old married man with no prior insurance claims. Rates are for a 2,049 square foot home built 37 years ago, based on the average home age and size in Arizona.
Quotes include the following coverage limits:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. Quadrant's rates were publicly sourced from insurer filings and should only be used for comparative purposes.
Home insurance ratings are based on complaint data from the National Association of Insurance Commissioners (NAIC), the J.D. Power customer satisfaction survey and ValuePenguin's ratings.
Sources:
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
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.
