Arizona Home Insurance Rates See 4th-Biggest Spike Nationwide | Living In Phoenix Arizona
ARIZONA HOME INSURANCE RATES SEE 4TH-BIGGEST SPIKE NATIONWIDE
LIVING IN PHOENIX, ARIZONA
Arizona Home Insurance Rates See 4th-Biggest Spike Nationwide
By AZBigMedia, azbigmedia.com | June 12, 2025
According to LendingTree’s annual State of Home Insurance 2025 Report, Arizona home insurance rates have surged 70% over the past six years, the 4th-biggest increase nationwide.
State Of Home Insurance In Arizona 2025
Rates have increased 70% in Arizona since 2019 — 4th highest nationwide.
Arizona saw a 13% increase in home insurance rates since last year.
With an average rate of $2,623, homeowners in Arizona pay 6% less than the national average of $2,801.
According to LendingTree’s insurance expert Rob Bhatt, these figures may add to homeowners’ financial stressors: “Rising home insurance costs are squeezing homeowners’ budgets,” Bhatt explains. “For new buyers, it means borrowing less while struggling to afford a home. For current homeowners, higher premiums leave less money for essentials. It’s a financial strain many simply can’t avoid.”
Here’s what else we found in State of Home Insurance: 2025.
Key Findings
Home insurance rates climbed 40.4% cumulatively across the U.S. over six years. From 2019 through 2021, rates stayed relatively level, with 2021 seeing the biggest jump at 3.0%. Rates have since risen faster, with increases of 5.4%, 11.0% and 11.4% in 2022, 2023 and 2024, respectively. That’s a concerning trend for homeowners.
In those same six years, home insurance rates rose the most in Colorado. Home insurance rates jumped by 76.6% cumulatively in Colorado from 2019 through 2024. Nebraska (72.3%) and Utah (70.6%) followed. The smallest cumulative increases were in Vermont (12.2%), Alaska (12.9%) and Maine (17.9%).
Home insurance rates jumped 11.4% last year. The states with the biggest increases in 2024 were Montana and Nebraska, both at 22.1%. Minnesota and Washington followed at 19.5%. No state saw a decrease in its home insurance rates in 2024.
The average annual cost of home insurance across the U.S. is $2,801. Two states have an average rate more than double the U.S. average: Oklahoma ($6,133) and Nebraska ($5,912). The lowest average rate is $632 in Hawaii — the only state under four figures. California ($1,260) and Vermont ($1,339) are the next closest.
Home Insurance Rates Rise 40.4% Over 6 years
From 2019 through 2024, home insurance rates rose by a staggering 40.4% cumulatively across the U.S.
The majority of those rate increases happened in the latter half of the period analyzed. Home insurance rates rose by just 2.0% in 2019.
Percentage Change In Home Insurance Rate By Year, 2019 Through 2024
Year
% change in home insurance rate
2024
11.4%
2023
11.0%
2022
5.4%
2021
3.0%
2020
2.1%
2019
2.0%
Source: LendingTree analysis of RateWatch from S&P Global data.
Thinking about investing in Phoenix real estate? Have a property to sell in Arizona? Tell us what you’re searching for. Connect with us to buy, sell, or lease multifamily, residential and commercial real estate in Phoenix, and across Arizona. Let’s work together.
https://vestis-group.com/wp-content/uploads/2025/06/Arizona-Home-Insurance-Rates-See-4th-Biggest-Spike-Nationwide-Living-In-Phoenix-Arizona.png5341222Natan Jacobshttps://vestis-group.com/wp-content/uploads/2024/01/Vestis-Group-Logo.pngNatan Jacobs2025-06-12 16:31:092025-06-12 17:04:13Arizona Home Insurance Rates See 4th-Biggest Spike Nationwide | Living In Phoenix Arizona