Can you afford to rebuild your Arizona home or replace your personal belongings out of pocket after a flood, wildfire, or other common calamities in the state? Insurance is the best way to protect yourself financially in case of damage to your property.
Arizona homeowners insurance can cover the cost of rebuilding your house, replacing damaged belongings, and living away from home as your property gets repaired after a covered loss. This eases your financial burden when disaster strikes.
However, your insurance policy must include all the coverages you need in Arizona for maximum financial protection. This guide will help you get the right insurance policy by walking you through typical Arizona premiums, key coverage types, and easy ways of lowering your insurance costs.
Average Homeowners Insurance Costs in Arizona
According to Bankrate, the average cost of homeowners insurance in Arizona is $2,337 per year. But this is just a general figure. The exact amount you’ll pay depends on multiple factors, including:
- Home location: If you live in an Arizona area prone to vandalism, theft, or weather-related disasters, expect higher rates. The greater the risk of a peril that can impact your home, the more likely you are to file a claim, so insurers raise premiums in riskier locations.
- Home age and materials: Older homes usually cost more to insure because their worn-out systems and structures are more likely to fail. Rebuilding the properties can also be more expensive than their actual market value, especially if the original building materials aren’t up to code or are hard to replace.
- Property value and size: Big, expensive homes cost more to repair or rebuild in case of damage, so they come with higher insurance premiums.
Coverage Options: What’s Required vs. Recommended
What should your Arizona homeowners insurance policy cover for maximum protection? Here are the key coverages in a homeowners policy, condo insurance, or mobile home insurance.
Basic Policy Components
A typical homeowners insurance policy includes four standard types of coverage:
| Type of Coverage | What It Covers | Examples |
|---|---|---|
| Dwelling coverage | Repairing or replacing your home’s physical structures after a covered loss | Roof, garage, deck, built-in appliances |
| Personal property | Replacing personal belongings in your home after an insured event | Furniture, electronics, clothing |
| Personal liability coverage | Paying for injuries and property damage you or someone in your household causes to others | Attorney fees, settlements, medical bills, repairs |
| Additional living expenses (also known as loss of use coverage) | Covering extra living expenses if your home becomes uninhabitable because of a covered tragedy | Hotel bills, dining out expenses, parking fees |
Optional Add-Ons
A standard Arizona house insurance policy usually doesn’t cover floods, wildfires, or dust storms — yet these are some of the most common hazards in the state. Adding extra coverage for these risks helps make sure you’re fully protected.
Depending on the weather in your area, you should add one or more of these optional coverages to your primary policy:
- Flood insurance: This covers flood damage to your home’s structure and built-in systems, plus personal belongings. Most insurers offer flood insurance through the National Flood Insurance Program (NFIP), a nationwide program run by the Federal Emergency Management Agency (FEMA). According to FEMA, flood insurance under NFIP covers building damage up to $250,000 and personal property up to $100,000.
- Wildfire coverage: Most basic homeowners policies cover general fire damage but exclude wildfires. If you live in a wildfire-prone area, you may need to add a wildfire policy to your standard homeowners insurance.
- Dust storm insurance: Dust storms are generally covered under the dwelling and personal property sections of a standard homeowners insurance. But if you live in high-risk areas, such as Willcox Playa in Cochise County, you may need to buy a storm insurance policy separately.
Discounts and Ways To Save
Lower your Arizona insurance costs and save money with the following tips.
Buy Multiple Policies From One Insurer
You could save money if you have two or more policies (such as home and auto) with the same company. That’s because most Arizona home insurance companies offer a discount when you bundle policies.
Obtain a Claims-Free Discount
If you haven’t filed a claim for a long time, say five years in a row, your insurance company may see your home as less of a risk. You may qualify for a claims-free discount as a result.
Install Smart Home Devices
When you install systems, such as smoke detectors, anti-theft alarms, flood sensors, and wildfire home sprinklers, you enhance security in your home. Insurance companies consider these devices as ways of mitigating risks that may make you eligible for an insurance discount.
Renovate Your Home
Renovating your home, such as installing a new roof and updating old wiring, replaces worn-out components that often drive up insurance costs. Giving your home a new look could lower your premiums.
How To Get the Right Policy in Arizona
The first step to getting the right insurance coverage is knowing what is or isn’t covered. Before signing a policy, read it carefully to understand what homeowners insurance covers.
Additionally, don’t choose the first provider you bump into while researching online. Instead, review multiple options that meet your needs before picking the best homeowners insurance in Arizona.
You can evaluate top insurance companies in the state by comparing custom quotes in three simple steps:
- Visit a home insurance comparison website, such as EverQuote.
- Provide personalized details such as ZIP code, property information, and street address.
- Get custom quotes from top companies, such as Liberty Mutual and Progressive, then choose the most affordable that offers the coverage you want.
Get Customized Homeowners Insurance Quotes Today
Arizona homeowners insurance options vary by ZIP codes, property features, and homeowner profiles. The best way to get insurance that covers all your needs without breaking the bank is to compare custom options.
With EverQuote, it only takes a few minutes to get a custom comparison for free. Compare personalized homeowners insurance quotes today and see the most affordable options in Arizona.