The Grand Canyon State is prone to more unpredictable weather patterns than you think. Flash flooding, wildfires, even hurricanes can wreak havoc on Arizona homes. That’s why it’s so important for Aizona homeowners to have appropriate homeowners insurance.
But headache-inducing radio and television ads make shopping for home insurance a nightmare. Enter Insurify, where shopping for homeowners insurance is made easy. That’s where Insurify comes in.
Use Insurify to compare dozens of Arizona home insurance quotes at once.
How to get affordable home insurance in Arizona
Purchasing a home will be one of the largest financial investments of your lifetime. With that investment, inevitably, comes risk. However, there are steps homeowners can take to minimize risk and protect their investment, including finding the right home insurance policy.
The first step to protecting your property is homeowners insurance. Though not required by law, (though it may be required by a lender as part of the mortgage agreement) home insurance provides financial liability for your property and belongings from natural disasters or theft. Different coverage levels are available for different property types, locations, and other factors.
Homeowners insurance rates aren’t designed with savings in mind. That’s where Insurify comes in.
As of 2019, the average home insurance premium in Arizona costs $1802 annually—far more than the national average. The median Arizona home is valued at $274,809.
Rates throughout Arizona can be relatively high or low compared to the state average—it all depends on which town you live in. Here are the most and least expensive ZIP codes in Arizona to buy and insure a home. Average rates within these ZIP codes tend to increase relative to property cost. In wildfire– or earthquake-prone areas, rates are often higher.
Most Expensive Arizona Towns
|Cheapest Arizona Towns|
|Median Home Price||City||Median Home Price|
Homeowners insurance quotes in Arizona by company
The price of homeowners insurance varies greatly from city to city. The following quotes are general estimates of annual home insurance premiums throughout Arizona, insurance companies offer different coverage levels and some even offer bundling options for your home and auto insurance.
|Insurance Company||Annual Quotes|
|Farm Bureau Mutual||$1,874|
What does home insurance cover in Arizona?
There are several types of home insurance. Specific terms of insurance policies may vary by state, but in general, the standard policy types are as follows:
|The simplest and least comprehensive type of homeowners insurance provides coverage for a handful of potential problems including natural disasters (storms, fires, wind lightning, volcanic eruption), explosions, theft, damage from vehicles, or civil commotion.|
|Broad form homeowners insurance policies include all basic form coverage, plus falling objects; damage from weight of ice, snow, or sleet; freezing of household systems, including HVAC and pipes; sudden damage to pipes and other household systems from artificially generated electrical currents; accidental discharge or overflow of water or steam sudden and accidental damage HO-2 policies typically cover both dwelling protection and personal property. In some cases, Broad form coverage may also include liability coverage. However, they still only cover the specific damages listed in the policy.|
|The most common forms of homeowners insurance are known as “special form” policies. While HO-1 and HO-2 policies are “named peril” policies, meaning they only cover dangers that are specifically listed in the policy, HO3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.|
|HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes. Tenant’s form policies typically cover all the same dangers as HO-2 policies. These policies include personal property coverage and liability coverage, but don’t cover the physical structure of the house. Some HO-4 policies may also include loss of use coverage for the tenants.|
|Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.
The biggest difference between HO-3 and HO-5 policies is that most HO3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies. An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy). HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property such as jewelry and artwork.
|Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies. They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building. These policies also include personal property and liability coverage and may include loss of use coverage.|
|If you own a mobile home or manufactured home, you likely have an HO-7 policy. Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes. Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well. HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.|
|Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them. HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes. Owners of registered landmarks are typically forbidden from updating HVAC, electrical and other parts of the home to enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.|
Mobile Home Coverage in Arizona
HO-7 type coverage is the best option for mobile homeowners. Even though home insurance is not mandatory in Arizona, mortgage lenders will require some sort of proof of insurance as a prerequisite to a loan.
Similar to traditional home insurance, mobile home insurance protects your investment from a plethora of risks, including dwelling coverage, personal property, and liability protection in case of an accident or natural disaster. Mobile home coverage levels can be higher than those of a traditional home, likely because mobile homes are more susceptible to storm damage. Depending on the level of coverage you choose when insuring your mobile home, your annual premiums may fluctuate.
Natural Disasters and Home Insurance Coverage
As Arizona residents know all too well, natural disasters can be catastrophic to property and livelihoods. In Arizona, especially, homeowners and renters alike face increased flashfloods, landslides, and earthquakes each season.
What’s covered and what’s not when it comes to homeowners policies and natural disasters in Arizona? Damage due to uncontrollable circumstances may still be covered—your level of coverage will determine how much your property is actually protected through your policy.
With such risk, home insurance providers often charge higher premiums to cover potential disasters like wildfires. That being said, with the right tools, you may still be able to find competitive home insurance rates in your area. To choose from the best homeowners insurance companies, use Insurify to compare home insurance quotes all in one place.
Conclusion: How to find the cheapest home insurance in Arizona
Just like groceries or clothes shopping, you can find a good bargain on home insurance, without sacrificing sufficient coverage to protect your investment. Protect your home from water damage to burglars and everything in between. With a little research and the right tools, you’ll be on your way to big savings.
Use Insurify to compare free quotes for home insurance premiums for your property in Arizona.
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