Arizona homeowners pay slightly less than the national average for their insurance coverage. But it may not feel like it, given a trend of notable rate hikes since 2020.
According to a new report from the online insurance shopping tool, LendingTree, home insurance rates in the state rose 71% over six years. That’s the sixth-largest increase in the nation over that period.
Rob Bhatt, an analyst at LendingTree, says the cause is two-fold.
There’s been an increase in catastrophic natural disasters, nationwide. The U.S. saw $138 billion in weather disasters between 2020 to 2025, according to data from the National Oceanic Atmospheric Administration and Climate Central. That’s around 23 events per year. The historical average since 1980 has been about nine events per year.
Compounding that, steady inflation has made it more expensive to rebuild.
“This is part of a national trend where we’ve seen insurance companies having to pay to rebuild more homes because of a wide variety of catastrophic natural disasters that have been occurring everywhere,” said Bhatt.
In Arizona, the primary risk is wildfire. Though the state hasn’t faced a significant disaster yet, Bhatt says insurers’ rate adjustments were likely based on recent events in California.
“Because now they’re seeing that when something bad happens, they’re seeing that it costs a lot of money to rebuild homes after wildfires and they’re realizing that they might have underpriced the risk in the past and that they need to raise their rates,” said Bhatt.
Arizona homeowners pay an average of $2,225 annually for home insurance. The national average is $2,395.
The report recommends shopping for more local coverage options and investing in home upgrades to help lower costs and individual risk.
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