Arizona Home Insurance Average Cost and Coverages

Unless you have a crystal ball, you most likely can’t predict if a tree will fall on your roof or if your kitchen will catch on fire. But accidents happen. To ensure your home is protected, consider signing up for a home insurance policy.

When you opt for a home insurance policy in Arizona, rest assured knowing you’re protected should an accident occur. (You can even be compensated for your loss, or protected financially if someone is injured on your property.)

Not sure where to start? Here are some home insurance basics to help you choose the best coverage.

How much does homeowners insurance cost in Arizona?

The average annual home insurance premium in Arizona is $1,105, although various factors determine your rate, such as your home’s value, when it was built, your personal insurance history, and the coverage limits you choose.

Is homeowners insurance required in Arizona?

Homeowners insurance is not required, but lenders will require it as a condition of your mortgage. Even if you're not required to have it, getting home insurance is a smart move as it can help protect you and your family from serious financial loss.

What does home insurance cover in Arizona?

Homeowners insurance covers damage sustained by your home and belongings in the event of a fire, lightning, smoke, theft, vandalism, water, wind, and more.

A standard home insurance policy protects:

• Your home. Your policy reimburses you for the costs of repairing or rebuilding your home when it’s damaged in a fire or any other disaster listed in your policy. 
• Other structures. If structures on your property get damaged by a covered peril (such as fire), standard home insurance coverage comes to the rescue.
• Your belongings. Your policy’s personal property coverage will help reimburse you for damage to your clothing and furniture. Keep in mind that most policies have limits on rare or valuable items like jewelry or antiques.
• Housing expenses if you need to vacate. If you need to live elsewhere while your home is being repaired or rebuilt, loss of use coverage—also called additional living expenses coverage—pays for your living expenses in your temporary home. 
• Medical bills if someone gets hurt on your property. If a guest slips in your home and breaks their hip, your policy’s personal liability coverage may pay for their medical bills, lost wages, and certain other expenses. 

Desert dreams

Scores of people have been relocating to Arizona to enjoy the state’s sunny climate, breathtaking desert landscapes, booming economy, and reasonable cost of living. As an Arizonan, you needn’t venture far to experience a natural wonder—from the Grand Canyon to Sedona to Petrified Forest National Park.

The Phoenix-Mesa-Scottsdale area has become especially popular. In fact, it’s now the country’s fastest-growing metro area, thanks in part to ample job opportunities, especially in the economic, tech, bioscience, and manufacturing industries. As of 2020, three out of four new residents moved to Phoenix from elsewhere; so if you’re thinking of moving to the city, you’ll find lots of other transplants who might be looking for new friends.

AAA Home Insurance add-ons

• Flood insurance. Standard policies don’t cover flood damage to your home, furnishings, or belongings.
• Building code coverage. If you have to rebuild or need extensive repairs, the new work must meet local building codes, which can be expensive.
• Extra coverage for jewelry or watches. Take an inventory and make sure you have the proper coverage for your treasured pieces.
• Identity theft coverage. With identity fraud on the rise, you may want to consider this coverage.
• Landlord insurance. If you own a rental property, this covers building damage from perils like fire, wind, electric malfunction, and vandalism. It also covers damage to kitchen appliances or any furnishings you provide for tenants.

AAA insurance agents are ready to help you find homeowners insurance to fit your needs. See AAA Arizona locations near you.