Insurance companies base their home insurance rates on the value of your property and how likely it is that something bad will happen to it. The higher the probability that a damaging event will affect your house and property, the more expensive your home insurance policy will be. These potential damaging events are called "risks” or “exposures.”
Let’s take a look at how risky Arizona is compared to the rest of the Unites States.
The burglary rate in Arizona is higher than the national average. Insurance companies will look at crime rates in your particular ZIP code when determining how high your premiums will be.
- Average number of burglaries per 1,000 homes in the US: 3.76
- Average number of burglaries per 1,000 homes in AZ: 4.40
Several insurance companies offer policy discounts to homeowners who have burglar alarms, deadbolt locks, and other security features installed in their homes. Talk to a local independent agent to learn whether you qualify for this or any other discounts.
Severe weather events, including hailstorms and heavy winds, can wreak havoc on residential properties in this state. Be sure that your home insurance provides all the coverage you need before disaster strikes.
- Number of federally declared disasters since 1953: 98
- Most common causes of disasters in the state: Wildfires, floods, and severe storms
- Average number of tornados per year in the state: 10.6
- Amount paid out in home insurance claims in AZ in 2016: $550,629,000
The size of your house can affect your home insurance rates, since larger homes tend to have more personal property inside them. The estimated cost to rebuild your home will also play a large role in how much your home insurance costs.
In Arizona, the average home value is higher than the national average. Of course, some cities in this state have more high-value properties than others, and therefore see higher average rates for coverage.
- Average home value in the US: $188,900
- Average home value in AZ: $223,400