The Best Homeowners Insurance in Arizona of 2023

Protecting their home is a top priority for homeowners in The Grand Canyon State. The best homeowners insurance in Arizona will provide the type and amount of coverage homeowners need to protect their investment.

Best Overall

The Best Homeowners Insurance in Arizona Option State Farm

State Farm

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Runner-Up

The Best Homeowners Insurance in Arizona Option Liberty Mutual

Liberty Mutual

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Best for Extended Coverage

The Best Homeowners Insurance in Arizona Option Farmers Insurance

Farmers Insurance

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Homeowners insurance is designed to help protect a homeowner’s greatest asset. While home warranty companies offer service plans to help extend the life of a home’s main systems and appliances, homeowners insurance companies write policies that can kick in when a home or its contents is damaged or destroyed by a covered event. Homeowners insurance also provides policyholders with liability coverage, loss of use coverage, and additional coverages a homeowner may need for their specific needs. A homeowner in Arizona is more likely to deal with wildfire damage than flooding or rain damage, so they will want to look for a policy that fits these requirements.

In their search for the best homeowners insurance, Arizona homeowners will want to look for policies that include the necessary coverage for both their home and belongings. This ranges from sufficient coverage amounts to specialty coverage options to working with a company that honors policyholders’ claims in a timely manner. In addition, homeowners want to find Arizona home insurance that doesn’t break the bank. To find homeowners insurance that checks all these boxes, it’s important for a homeowner to put in the time to research different homeowners insurance companies and the policies they offer. By doing so, homeowners are more likely to find the homeowners insurance they need from a company they can trust.

  1. BEST OVERALL: State Farm
  2. RUNNER-UP: Liberty Mutual
  3. BEST FOR EXTENDED COVERAGE: Farmers Insurance
  4. BEST DISCOUNTS: American Family Insurance
  5. ALSO CONSIDER: Lemonade
The Best Homeowners Insurance in Arizona Options
Photo: istockphoto.com

What to Consider When Choosing One of the Best Homeowners Insurance Companies in Arizona

While shopping for Arizona homeowners insurance, homeowners will want to consider not only price but also such factors as coverage amounts, different policy options, and how easy it is to get a rate quote and file a claim. Finding companies that offer discounts also can help policyholders save on their homeowners insurance premiums.

Coverage Amount

Unlike so-called “home warranty insurance,“ which isn’t actually insurance at all but instead a contract that covers repairs to specific appliances or home systems such as the heating and air-conditioning components, home insurance in Arizona offers home protection for the entire dwelling structure and the homeowner’s personal belongings if they’re damaged or destroyed by a covered event. As such, it’s important for homeowners to find an Arizona insurance company that offers policies with a coverage amount that’s sufficient to repair or replace the home as well as personal belongings. If the coverage amount is not adequate, the policyholder could end up having to pay out of pocket to cover repairs or replacement costs that exceed policy limits.

Policy Options

Standard homeowners insurance policies include coverage for the repair or replacement of the dwelling and personal belongings; they also include personal liability coverage and loss of use coverage. However, Arizona homeowners may need additional coverage to fully protect their homes. For instance, damage to a home due to water backups is not covered under standard homeowners insurance. Also, coverage for high-value items such as jewelry, artwork, musical instruments, sports equipment, and collectibles is limited under standard personal belongings coverage. For this reason, a homeowner may need to purchase additional coverage for specific items that are valuable or exceed policy limits, so it’s important to find an insurance company that offers these options. Homeowners will want to talk with their insurance agent about all policy options available to see if the right coverage is available for their individual needs.

Insurance Premiums

When researching the costs of homeowners insurance, Arizona homeowners typically want to find the most affordable coverage. Insurance premiums are the costs policyholders pay to keep their homeowners insurance policy active. The premium amount depends on a number of factors including the amount and type of coverage purchased, the age and location of the home, the home’s construction (brick, wood, stucco, etc.), and the policyholder’s claim history. Although some factors cannot be changed (like the home’s age and location), there are some that can be adjusted to make the insurance premiums more affordable. These include how much coverage is purchased, the type of coverage selected, and the deductible on the policy.

Quote Process

As homeowners shop for homeowners insurance, comparing insurance quotes in Arizona can help them find adequate coverage at a price that fits within their budget. Many homeowners insurance companies offer an online rate quote tool that can provide an estimated cost for coverage. These tools rely on the shopper providing some basic personal information and coverage requests to generate a quote. Although they may provide a general idea of the policy cost, a quote is likely to change once a homeowner actually applies for a policy. Speaking with an insurance agent can provide homeowners with more accurate homeowners insurance quotes in Arizona because the agent can gather specific personal information and coverage parameters for the policy.

Claims Process

No one likes filing an insurance claim. Therefore, when researching homeowners insurance companies in Arizona, it’s important for homeowners to research each company’s claims process to see how it works. Many of today’s homeowners insurance companies offer the option to file a claim online, using the company app, or speaking to an agent by phone or in person. Policyholders also often have the ability to check the claims status through these same avenues. Speaking to current and previous customers who have filed claims is a great way for homeowners to find out how long it took the company to process claims and if the claims process went smoothly. Checking reviews on sites such as the Better Business Bureau also can provide homeowners with insight into a company’s claims process.

Deductibles

When a policyholder files a claim, they are responsible for paying a deductible out of pocket. For instance, if a claim is for $10,000 and the policy deductible is $3,000, the insurance company pays $7,000 and the policyholder is responsible for $3,000. How much the deductible is depends on the policy’s coverage amount and, in some cases, the type of coverage. For instance, some companies charge a separate deductible for certain perils such as wind damage. Premiums are also influenced by the deductible a policyholder chooses. Typically speaking, the higher the insurance premiums, the lower the deductible and vice versa.

Additional Policies

Homeowners insurance is a necessary investment to protect a major investment. Additionally, many homeowners have other insurance needs, too, such as car insurance, life insurance, and insurance for boats, RVs, or other motorized vehicles. Working with one insurance company for all types of insurance policies can make it much easier for policyholders to manage all those policies. It can also be helpful when it’s necessary to make changes or file claims, because the policyholder may have a good relationship with the agent. In addition, having more than one insurance policy with the same insurance company could result in savings on insurance premiums.

Discounts

Getting a good deal on homeowners insurance is always a consideration, and for homeowners in this area, finding the cheapest insurance in Arizona might be a priority. To save money on homeowners insurance premiums, policyholders will want to take advantage of every possible discount available from the insurance company. One of the most common discounts is for bundling homeowners insurance with car insurance. But many insurance companies offer a variety of discounts that could increase a policyholder’s savings. These include discounts for having a home security system, signing up for paperless billing and automatic payments, and purchasing more than one insurance policy from the company. Homeowners will want to ask the insurance company for a complete list of available discounts to ensure they don’t overlook any potential savings.

AM Best Ratings

When a policyholder files a claim, they want to feel confident the company will pay that claim as agreed. A key indicator of a company’s financial strength is its AM Best rating. AM Best is a company that reviews insurance companies to determine their creditworthiness and therefore their ability to pay claims. Based on this information, AM Best assigns ratings to companies that reflect their financial strength. The ratings range from A++ (Superior) to D (Poor). Ideally, homeowners will want to choose companies with an A+ or A++ rating, but companies with ratings between B+ (Good) and A (Excellent) also may be good options. Companies without an AM Best rating could still be a good choice (it’s possible they may not have been rated yet), but it’s important for homeowners to check out customer reviews to see how they perform.

Our Top Picks

As we were looking for the best homeowners insurance in Arizona, we looked for companies that offered easy quote and claims processes, a wide range of coverage, various discounts, and a range of deductibles to suit a variety of budgets.

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Why It Made the Cut:

State Farm offers high personal property coverage limits, an earthquake endorsement option, low insurance rates for Arizona properties, a generous home and auto bundle discount, and a high AM Best rating.

While State Farm’s deductible options lean toward the high side with a maximum of $10,000, the company’s homeowners insurance offerings could be worth the cost. For instance, State Farm customers in Arizona can purchase personal property coverage on their homeowners insurance policy worth up to 150 percent of their dwelling coverage limit, which is a very high coverage amount for the Arizona market. Also, Arizona customers can purchase an extra endorsement that adds earthquake coverage to their policy.

And while rates vary for each homeowner, customers may find that State Farm offers competitive rates for homeowners insurance in Arizona. Those rates could be further reduced for State Farm customers who choose to bundle their home and auto policies thanks to the company’s bundling discount as high as 35 percent. Customers with impact-resistant roofing products (like hail-resistant shingles) or who install protective devices (such as fire, smoke, or burglar alarms) may be eligible for further discounts. Plus, the company maintains an AM Best rating of A++, providing peace of mind to customers that the company will pay out claims in a timely manner.

 

Specs

  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: $5,000 or $10,000; or 0.5 percent, 1 percent to 5 percent
  • Discounts: Multipolicy, protective device, impact-resistant roofing
  • AM Best rating: A++

Pros

  • High personal property coverage of up to 150 percent of dwelling coverage limit
  • Earthquake damage add-on available
  • Relatively low insurance premiums
  • High 35 percent discount on home and auto bundles available
  • A++ AM Best rating

Cons

  • Relatively high deductibles up to $10,000 possible
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Why It Made the Cut:

Liberty Mutual includes standard high extended dwelling coverage, offers an add-on endorsement for earthquake damage, has a low deductible option, and provides a discount for buying a policy online.

Liberty Mutual includes extended dwelling coverage with its Arizona homeowners insurance policies, boosting the dwelling coverage to an amount equal to 125 percent of the standard dwelling amount. Policyholders also have the option to add earthquake coverage to their policy—an important option for those living near areas with regular seismic activity.

While Liberty Mutual offers deductible options as low as $500 on homeowners insurance policies in Arizona, the company does require a separate deductible for wind and hail damage. Therefore, it’s possible policyholders could end up with a wind/hail deductible as high as $10,000 or a percentage of their dwelling coverage, which could have a significant impact on the payout they’d receive on a property damage claim. However, to help maximize savings, Liberty Mutual will give homeowners a 11 percent discount for buying a policy online. Additional discounts include claims-free (a homeowner has not filed a claim with a previous insurer for 5 or more years), safe homeowner (a homeowner’s Liberty Mutual policy remains claims-free for 3 years), early shopper (the homeowner gets a quote for Liberty Mutual before their policy with a previous insurer expires), and for purchasing insurance online.

 

Specs

  • Quote process: Online, phone, agent
  • Claims process: Online, phone, agent
  • Deductibles: $500 to $10,000; or 0.5 percent, 1 percent, or 2 percent; Wind/hail: $1,000 to $10,000; or 0.5 percent, 1 percent to 5 percent
  • Discounts: Claim-free, safe homeowner, early shopper, online purchase
  • AM Best rating: A

Pros

  • High 125 percent extended dwelling coverage included
  • Earthquake damage add-on available
  • Low $500 deductible option available
  • Generous 11 percent discount for online policy purchases

Cons

  • Relatively high separate wind/hail deductible up to $10,000 possible
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Why It Made the Cut:

Farmers Insurance offers a high personal liability coverage limit along with a high other-structures coverage limit, plus low insurance rates on Arizona homeowners insurance policies.

Farmers Insurance customers can purchase personal liability coverage with a limit up to $2 million, which is quite high for this type of coverage. Homeowners who want a higher limit on their personal liability coverage to protect themselves financially in the event they are liable for third-party injuries or damages and incur legal fees may appreciate having this option available to them.

In addition, Farmers Insurance customers can purchase other-structures coverage equal to up to 40 percent of their dwelling limit. Among Arizona homeowners insurance offerings, this is a pretty high amount and may be useful for homeowners who have gazebos, toolsheds, detached garages, fences, or other structures on their property that they would like to fully insure.

Although Farmers Insurance doesn’t offer online quotes for all Arizona ZIP codes, the company may offer competitive rates on homeowners insurance in this state, making it worth a homeowner’s time to reach out for a quote. Homeowners can decrease their insurance costs by taking advantage of discounts for paying their bill on time, installing protective devices in their home, being a nonsmoker, and bundling multiple policies with Farmers.

 

Specs

  • Quote process: Online, phone, agent
  • Claims process: Online, phone, agent
  • Deductibles: $1,000 to $10,000; or 1 percent to 5 percent; Wind/hail: $1,500 to $5,000; or 1 percent to 5 percent
  • Discounts: Multipolicy, protective device, nonsmoker, preferred payment plan, claim-free, good payer
  • AM Best rating: A

Pros

  • High $2 million personal liability coverage limit available
  • Relatively high 40 percent other-structures coverage available
  • Relatively low insurance premiums

Cons

  • Online quotes not available for all Arizona ZIP codes
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Why It Made the Cut:

American Family Insurance offers a generational loyalty discount for customers whose parents also have homeowners insurance with the company, a standard diminishing deductible, and free wildfire mitigation services for Arizona homeowners.

American Family Insurance (AmFam) offers a variety of ways for Arizona homeowners to save on their insurance costs, which can come in handy as AmFam may have relatively high insurance rates. For instance, AmFam offers a generational discount, which provides lower rates for customers between the ages of 18 and 30 whose parents are already AmFam customers. This is a fairly unique discount and could help homeowners lower the cost of their insurance policy.

Also, American Family Insurance homeowners policies come with a diminishing deductible, which decreases each year the policyholder goes without filing a claim. In fact, the deductible will be lowered by $100 right from the start. This standard inclusion can help policyholders maximize their payouts on any claims they file since they will have a lower deductible, depending on how long they go without filing a claim.

Another bonus: AmFam gives policyholders in Arizona a free wildfire defense endorsement, which deploys a crew of fire protection contractors to the home when there is a wildfire in the customer’s area. The crew will check the home inside and out for combustibles and clear the area of items such as dry grass and leaves, wooden patio furniture, gas cans, and flammable items such as cleaning supplies. This can help mitigate the damage a wildfire could cause to the home.

 

Specs

  • Quote process: Online, phone, agent
  • Claims process: Online, phone, agent
  • Deductibles: $1,000; Windstorm/hail: $1,000
  • Discounts: Multipolicy, protective device, autopay, age of home, loyalty, renovated home, generational loyalty
  • AM Best rating: A

Pros

  • Standard diminishing deductible
  • Free wildfire prevention and mitigation services
  • Unique loyalty discount available

Cons

  • Relatively high insurance premiums
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Why It Made the Cut:

Lemonade offers the potential to receive instant claim approval, a low deductible option, and the ability for customers to choose a nonprofit to which unclaimed funds will be donated.

Lemonade is a 100 percent online insurance company that uses an AI-based claims management system to quickly review claims for signs of potential fraud and instantly approve straightforward claims that don’t require a more thorough assessment. The company estimates that around 40 percent of claims are immediately processed as a result, and approved claims can be paid out within seconds. Although not all Arizona homes will be eligible for a Lemonade homeowners insurance policy, those who can get a Lemonade home protection plan could choose the $500 deductible option to minimize out-of-pocket costs when filing a claim.

Although Lemonade has not been rated by AM Best, which could give some homeowners pause, the company does have an “A” rating for financial strength from Demotech, which specializes in evaluating the financial stability of specialty and regional insurers. Customers who want to use their money to make a difference will be happy to learn about the Lemonade Giveback program, which earmarks a certain portion of unclaimed money (up to 40 percent) that’s left over at year’s end and donates it to different nonprofits of the customer’s choosing.

 

Specs

  • Quote process: Online
  • Claims process: App
  • Deductibles: $500 to $7,500
  • Discounts: Multipolicy, protective device
  • AM Best rating: No rating

Pros

  • Instant claim approval possible
  • Low $500 deductible option available
  • Leftover money from customers’ premiums is donated to a nonprofit of the policyholder’s choice

Cons

  • Coverage not available for all Arizona homes
  • Not currently rated by AM Best

Our Verdict

We named State Farm as Best Overall because it checks a lot of boxes for a great homeowners insurance company, including high personal property coverage limits and a high AM Best rating. We chose Liberty Mutual as Runner-Up because of the low deductible option and standard high extended dwelling coverage.

How We Chose the Best Homeowners Insurance Companies in Arizona

When determining the best homeowners insurance companies in Arizona, we looked at the coverage options available with each insurance provider, including standard coverage terms and extra endorsements. We also weighed coverage options that may appeal to Arizona homeowners in particular and may offer more value to policyholders in the state. Cost considerations were major factors that informed our rankings as well, and our research looked at the insurance premiums, discounts, deductibles, and other factors that may impact the total cost of a homeowners insurance policy. Both quote and claim processes were weighed, too, along with the financial stability of each company.

Before You Opt for One of the Best Homeowners Insurance Companies in Arizona

Although the homeowners insurance companies listed here will likely fit the needs of most Arizona homeowners, they are not “one-size-fits-all” options. All homeowners have specific needs, and each one needs to find an insurance company that meets those needs. Homeowners can use the information included in this guide as a solid foundation for finding the best homeowners insurance company, but they will want to also conduct their own independent research. A good place for a homeowner to start is with their existing insurance company. Arizona homeowners may also want to consider locally owned insurance companies in their community. Local companies may be able to address local issues that Arizona homeowners could face that national companies may not.

Cost of Opting for One of the Best Homeowners Insurance Companies in Arizona

The average homeowners insurance cost in Arizona is $1,530, but the actual cost will vary from homeowner to homeowner. In the search for cheap home insurance, quotes are the best way for homeowners to find and compare affordable homeowners insurance policies. It’s important for customers to get quotes from at least three different insurance companies for a thorough comparison. Because rates change frequently, homeowners are advised to get those quotes on the same day using the same information on their house and their coverage needs. Getting quotes from the best homeowners insurance companies in Arizona is a good start, though homeowners may also want to get quotes from other companies not listed in this guide.

The Advantages of Opting for One of the Best Homeowners Insurance Companies in Arizona

Choosing a homeowners insurance policy from one of the best homeowners insurance companies in Arizona has several advantages for homeowners. These companies have a lot to like when it comes to providing coverage. For example, the best homeowners insurance in Arizona may feature several deductible options, which could save homeowners money when filing a claim, as well as various discounts to increase savings on insurance premiums. Other benefits include the following.

  • A variety of ways to get quotes, including online, over the phone, or in person;
  • Several ways to file claims, such as online, via app, by phone, or with an agent in person; and
  • High financial strength ratings from AM Best or Demotech, which speaks well of a company’s ability to pay claims in a timely fashion.

FAQs

Finding the right homeowners insurance in Arizona can be a challenge. After all, it takes time and research to find a policy that provides the best coverage for the best price. When looking for homeowners insurance, many homeowners have a lot of questions. What follows are some of the most common questions and answers about homeowners insurance in Arizona.

Q. Does homeowners insurance in Arizona cover repairs for fire damage?

In many cases, homeowners insurance does cover repairs for fire damage. Homeowners in Arizona will want to read the fine print in their policy to make sure they understand exactly what is and is not covered.

Q. How long does it take to get homeowners insurance in Arizona?

Depending on the company and the policy, it could take anywhere between a few minutes to a few days to get a homeowners insurance policy.

Q. Is homeowners insurance required by the law in Arizona?

While Arizona law does not require homeowners to carry homeowners insurance, a lender or mortgage company typically will require a homeowner to maintain homeowners insurance as long as there’s a mortgage on the house.

Q. Does homeowners insurance in Arizona cover theft?

Theft of personal property typically is covered under homeowners insurance, but some restrictions may apply—homeowners can review their policy or ask a company representative to specify what their homeowners insurance policy covers.

Q. How can I save money on homeowners insurance in Arizona?

Shopping around, increasing your deductible, and bundling insurance policies could help you save money on your Arizona homeowners insurance.

Q. What does homeowners insurance in Arizona not cover?

Standard homeowners insurance typically doesn’t cover flood damage, the business use of the home, water damage due to sewer backups, and damage caused by earthquakes.

Sources: NerdWallet

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Karon Warren

Contributing Writer

Writing for BobVila.com since 2021, Karon Warren has covered home insurance and home loan topics for more than 15 years. She also routinely writes about mortgages, car insurance, and personal finance.

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