From Phoenix’s beautiful desert scenery to Tucson’s vibrant food scene, there are plenty of reasons to call the Grand Canyon State home. If you’re an Arizona resident, you’ll want the best homeowners insurance in the state to protect your home. Whether you’re shopping to fulfill a mortgage requirement or to insure your most valuable possessions, it’s essential that you choose your provider wisely.
We at the Home Media reviews team have researched, analyzed and compared the best homeowners insurance companies to compile our top picks. After considering cost, plans, benefits, drawbacks and coverage, here are Arizona’s best homeowners insurance providers.
Top 5 Homeowners Insurance Companies in Arizona of 2022
After in-depth research, we found the following providers to offer the best homeowners insurance in Arizona:
The average cost of homeowners insurance in Arizona was $850 per year in 2019, lower than the national average annual premium of $1,272, according to the Insurance Information Institute’s (III) 2021 report.
Homeowners insurance rates vary based on your location, your home’s square footage and other factors. Use our free tool below to get a personalized quote.
Lemonade Home Insurance
- Our rating: 85.75
- AM Best rating: N/A
- J.D. Power rating: N/A
Founded in 2015, Lemonade is a relative newcomer to the insurance field. Nevertheless, its forward-thinking approach to claims and customer service has made it a contender in the homeowners insurance category. Customers can use the company’s mobile app to file simple claims, which Lemonade’s AI can sometimes pay out in minutes or even seconds.
Lemonade offers several endorsements for add-on coverage, as well as discounts for bundling with its pet insurance. Though it is not yet rated for its homeowners insurance policies, Lemonade’s renters insurance scored 853 out of 1,000 in the J.D. Power 2022 U.S. Home Insurance study.
Pros and Cons of Lemonade Home Insurance
+ Uses AI to power sign-up and claims processes, meaning payouts and policy changes can often be made in minutes
+ Quotes homeowners lower rates than competitors across Arizona
+ Donates up to 40% of unclaimed premium money to nonprofits each year with its charitable giveback program
– Has no locally based agents for in-person support
– Requires policyholders to shoot a video explaining the incident for some claims
Discounts: Lemonade offers discounts for homes with safety features, such as fire alarms and extinguishers, sprinkler systems, storm shutters, smoke alarms, deadbolts, burglar alarms and home security systems. Bundling with a pet insurance policy and choosing an annual payment option are two more ways to receive a discounted rate.
Endorsements: For extra protection, Lemonade gives policyholders add-on coverage options for significant others who live in the home, jewelry, fine art, oil tanks, swimming pool liability, water backup, musical instruments, bikes and cameras.
Get your personalized home insurance quote from Lemonade.
To learn more: Lemonade Home Insurance review
Allstate Home Insurance
*AM Best ratings are accurate as of September 2022.
Allstate is an excellent choice for Arizona home insurance, holding an A+ rating from AM Best for its financial strength. The company also offers discounts for green homes, a benefit for homeowners who are passionate about reducing their home’s environmental footprint.
To educate homeowners, Allstate’s website offers a unique Common and Costly Claims tool that displays the most common homeowners insurance claims in a given zip code. The company’s site also provides a renting versus owning tool that calculates and compares the cost of both options for potential homebuyers.
The company’s Claim Rateguard is meant to prevent increased insurance costs for homeowners who have filed a claim in the previous year. However, during our secret-shopping process, we found that the company offers fewer choices for customizing coverage amounts than its competitors. Nevertheless, the company remains one of our top choices for Arizonians.
Pros and Cons of Allstate Home Insurance
+ Offers an online tool to appraise personal property value, allowing customers to choose the appropriate amount of coverage
+ Has a local agent network that spans across the United States for in-person support
+ Automatically applies discounts during the quoting process
– Has higher premium prices than many competitors on this list
– Offers fewer choices for customized coverage caps on homeowners insurance plans
Discounts: Allstate offers homeowners a discount for bundling their home insurance plan with an auto insurance policy. The provider also extends a Responsible Payment Discount, an Easy Pay Plan discount, an early signing discount, a claim-free discount when switching to Allstate, a recent homebuyer discount and a protective device discount.
Endorsement: Allstate offers optional add-on coverage for yard and garden, home-sharing, sports equipment, flood insurance, water backup, scheduled personal property, musical instruments, green improvement restoration, electronic data recovery, identity theft restoration, business property, manufactured/mobile homes and personal umbrella insurance.
Get your personalized home insurance quote from Allstate.
To learn more: Allstate Home Insurance review
American Family Home Insurance
American Family was founded in 1927 as an automobile insurance company but has since grown into a fully-fledged insurer of vehicles and homes. The provider offers coverage for vehicles from cars to snowmobiles, specialized insurance for classic cars and motorcycles, and insurance for homes, condos and renters.
The company has a robust network of local agents plus 24/7 claims support over the phone, giving customers access to help when needed. Conversely, the company has a less comprehensive mobile app than competitors such as Lemonade. However, the American Family website offers an online or agent-led quoting process, a checklist before buying and more handy resources.
Endorsement choices are limited compared to similar providers, which may not be ideal for customers looking for a more customized plan. Nevertheless, we recommend this provider for its helpful online guides and various online and in-person customer service options.
Pros and Cons of American Family Insurance
+ Offers discounts for new, renovated and smart homes
+ Has a wide variety of helpful online resources to guide homeowners through the insurance purchasing process
+ Actively works to reduce its environmental impact and has committed to becoming carbon-neutral by 2030
– Provides fewer add-on coverage options available than competitors
– Has a substantial list of banned dogs, which may prevent some homeowners from obtaining coverage
Discounts: The homeowners insurance discounts offered by American Family fall into two categories: standard and smart home. The standard category includes discounts for bundling two or more insurance products; age discounts for homes less than 15 years old or that have had major systems renovations within the last 15 years; discounts for auto-pay and paperless billing; and loyalty and generational discounts. Smart home discounts are available for homes with fire and smoke sensors, home security systems, climate control features and smart home water sensors.
Endorsements: Additional coverage choices for policyholders with American Family include sump pump and water backup coverage, credit theft protection and monitoring, equipment breakdown coverage and matching siding protection.
Get your personalized home insurance quote from American Family.
To learn more: American Family Home Insurance review
Travelers Home Insurance
Aside from offering an impressive range of discounts, Travelers received an A++ rating for financial strength from AM Best, which is the highest possible score. Since 1853, Travelers has provided a repertoire of insurance products which has grown to include boat and yacht insurance, travel and events coverage, homeowners insurance and more.
The Travelers customer service center gives policyholders several options for 24/7 help with policies, billing and claim filing. The company’s mobile app also allows you to contact your agent directly.
Travelers also provides a Decreasing Deductible rider that lowers your policy’s deductible by $100 each year you renew, regardless of whether or not you filed claims the previous year. Over time, this can lead to substantial savings in an emergency.
Pros and Cons of Travelers Home Insurance
+ Has provided insurance products longer than any provider on this list, with 169 years of experience
+ Partners with OpenHouse to provide the repair and update history of your home
+ Offers a Decreasing Deductible benefit that reduces your policy deductible by $100 each year, even if a claim has been filed
– Has no policies available for mobile or manufactured homes
– Received a lower J.D. Power customer satisfaction ranking than other providers on this list
Discounts: Travelers offers green home, home-buyer, loss-free, protective device and multi-policy discounts to customers. The company’s annual Decreasing Deductible benefit can also provide savings to renewing policyholders.
Endorsements: Travelers’ endorsements include additional replacement cost, water backup, jewelry and valuable items, identity fraud, sump pump discharge or overflow, personal articles, special personal property and green home coverage.
Get your personalized home insurance quote from Travelers.
To learn more: Travelers Insurance review
Liberty Mutual Home Insurance
With an A rating from AM Best, Liberty Mutual home insurance policyholders can be confident in the provider’s financial stability. Liberty Mutual offers homeowners, auto, business and renters insurance products and has been in business for more than 110 years.
Liberty Mutual offers homeowners a variety of options to reduce costs, including discounts for purchasing a new policy before the previous one expires, shopping online and insuring at least 100% of a home’s value.
Getting a quote with Liberty Mutual was not as easy as with some other providers. In our secret shopping process, we found that Liberty Mutual asked detailed questions about the home’s use and other items that were not included in competitors’ quoting processes. However, the company offers online chat and phone support for shoppers who have questions about the quoting process.
Pros and Cons of Liberty Mutual Home Insurance
+ Offers an inflation coverage add-on that adjusts annual coverage costs against expected inflation rates
+ Gives a 10% discount for purchasing your policy through the company’s website
+ Has an option to connect with agents through live chat or phone if you need assistance during the quoting process
– Has below-average customer satisfaction, as noted by J.D. Power
– Asks in-depth quoting questions that may complicate the quoting process for some shoppers
Discounts: Liberty Mutual offers home safety discounts for homes with smoke and heat alarms, fire protection, sprinkler systems, theft protection and water protection. The provider also reduces rates through claims-free, multi-policy, insured to value, preferred payment, paperless, newly purchased home, new/renovated home, new roof and early shopper discounts.
Endorsements: Additional coverage options through Liberty Mutual include hurricanes, total replacement cost, overflow and inflation, water backup and jewelry.
Get your personalized home insurance quote from Liberty Mutual.
To learn more: Liberty Mutual insurance review
The Bottom Line: Which Is the Best Homeowners Insurance Company in Arizona for You?
For homeowners in Arizona, we recommend Allstate for its comprehensive coverage and excellent ratings from J.D. Power and the BBB. For shoppers who want a truly modern experience in the Grand Canyon State, we suggest Lemonade for its quick payouts, digitally-driven customer service and innovative mobile app. =
While the providers listed above are all excellent options, we recommend getting quotes from at least three homeowners insurance companies to find the best rates and coverage for you.
Get instant quotes from insurers by entering your ZIP code here or calling 855-948-5219.
Factors That Affect Home Insurance Rates in Arizona
When determining a homeowners insurance quote, providers assess factors that determine the risk level of the house and policy. Here are some of the most common considerations for homeowners insurance rates:
- Condition: Similarly to age, the condition of your home influences your homeowners insurance pricing. This is why many quoting processes inquire about the age of your roof and any recent renovations or repairs you’ve made to major home systems. In particular, a roof in poor condition can lead to extremely costly repairs and will likely raise insurance rates.
- Discounts: Each provider in this review offers discounts to reduce premiums, so choosing a provider with multiple applicable discounts can lower the amount you pay. Bundling several types of insurance with one provider is one of the most common ways to save.
- Claims history: Similarly to credit score, your claims history is a factor underwriters consider when assessing how likely you are to make a claim in the future. History of filing claims with other providers will likely raise the rate. Allstate home insurance offers its Claim Rateguard to protect you against increasing costs, even if you’ve filed a claim in the previous year.
- Credit score: Underwriters for insurance policies see credit scores as a way to assess the risk level of a policyholder. If your score is lower than 580, it may lead to higher insurance rates. Individuals with lower credit scores are seen as more likely to file a homeowners insurance claim. Thankfully, improving your credit score to above 700 will often lower your price for multiple insurance products.
- Location: Your home insurance company will consider the cost of rebuilding homes in your zip code plus how close your address is to a fire department, fire hydrants and a local police station. These factors assess your home’s risk level for costly claims. Some insurers also factor in local crime rates.
- Home security features: Homeowners insurance companies often lower rates for homes protected by home security systems and offer discounts for certain safety features. Lemonade, in particular, offers eight different discounts for home safety and security features.
- Renovations: Renovating your home can change the cost of rebuilding it and alter its total square footage. These changes can affect policy rates and should be disclosed for accurate coverage.
- Dog breed: Certain dog breeds are labeled by insurance providers as high-risk. Owning a high-risk breed can increase your rates and even exclude you from coverage with some providers. American Family lists excluded dogs and requirements for homes with high-risk breeds, such as a fenced-in backyard.
- Policy structure: The endorsements, coverage limits and deductible you choose will influence the cost of your homeowners insurance policy. Higher coverage amounts, lower deductibles and add-ons can all increase rates. To lower your monthly premium, you may want to raise your deductible amount and only choose endorsements you truly need. Be aware, though, that these choices could lead to higher out-of-pocket costs in the event of a claim.
- Age: Older homes are often more expensive to insure, not only because they are made of older materials that are more difficult to match, but also because they carry higher odds of needing to be repaired and replaced.
- Replacement cost: One of the most significant factors in your policy price is replacement cost, which is the amount of money it would take to rebuild your home if it were damaged or destroyed. Square footage, building materials, architectural style and other factors can determine the estimated cost to replace your house.
Common Causes of Home Insurance Claims in Arizona
Arizona’s most common causes of home insurance claims are natural disasters and the resulting damage. Potential problems include the following:
- Flooding and storm damage: The state’s powerful thunderstorms can result in flash floods and wind damage to houses, resulting in costly claims. Most Arizona properties carry a risk of flooding higher than the national average.
- Wildfires: The Insurance Information Institute lists Arizona fourth in the United States for the number of properties at risk for wildfire damage. Fires are among the top three most expensive natural catastrophe losses for homes.
- Water damage: Water from the floods and storms mentioned above can cause long-lasting damage, resulting in mildew, structural damage, mold and damaged carpet or flooring.
Most standard policies do not cover these natural disasters, so read your policy carefully and select appropriate add-on coverage if you want extra protection for these events.
Frequently Asked Questions About Arizona Homeowners Insurance
Methodology: Our System for Ranking the Best Home Insurance Companies
Our team surveyed dozens of home insurance providers and created a scoring system to judge each company’s quality and service. We reach out for sample quotes, both over the phone and on the internet, to simulate an authentic customer experience. Here are the factors that account for our provider reviews:
- Coverage (20%): We analyze each provider’s coverage options, policy endorsements and coverage limits to determine quality of coverage.
- Customer service (15%): We also evaluate each company’s customer service options such as live chat, a customer support phone line and access to agents.
- Technology (15%): Similarly, we score providers based on their digital resources, such as a mobile app, online comparison tools and quote process.
- Reputation (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings.
- Additional benefits (15%): Additionally, we weighed each company’s added benefits, including discounts and policy endorsements.
- Cost (20%): Last, we compare cost data for homes across the nation to assess how competitively priced each provider is.
Companies with the best customer service exhibit 24/7 availability, educational resources on their website, useful digital tools and a seamless claims-filing process. Providers that offer extensive discount options, endorsements, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.
AM Best disclaimer