If you’re a homeowner in Chandler or Gilbert, you’ve likely noticed a shocking increase in your home insurance premiums over the past year. You’re not alone—and you’re not imagining it. Arizona has experienced a dramatic 62.1% increase in home insurance rates over the past five years, the highest rise of any state during this period. In fact, Arizona home insurance rates have surged 70% over the past six years, the 4th-biggest increase nationwide.
For East Valley homeowners, this translates to real financial pain. The average monthly home insurance cost in Chandler is around $184; in Phoenix, it’s much higher at $224. But what’s driving these increases, and more importantly, what can you do about it?
The Perfect Storm: Why Arizona Insurance Rates Are Skyrocketing
1. Natural Disasters and Climate Impact
Arizona’s unique weather patterns are creating a costly combination for insurers. “The insurance industry in 2023 had 23 separate catastrophic crises that resulted in over a billion dollars from the insurance collective,” explains insurance expert Aliesha Brard. According to a January 2025 civic alert in Pinal County, wildfires are getting worse in Arizona. The peak fire season begins in late April and lasts approximately 13 weeks.
Beyond wildfires, our state faces:
- Flash floods during monsoon season (June through September)
- Haboobs (dust storms reaching up to 5,000 feet high)
- Extreme heat damaging roofing materials
- Occasional hail storms in certain regions
2. Inflation and Rising Construction Costs
Inflation doesn’t just affect gas and food prices. Homeowners insurance rates are going up because it’s gotten more expensive to repair and rebuild houses after they’re damaged. “It’s so much more expensive to rebuild a house now than it would have been two years ago, or four years ago, six years ago,” notes insurance agent MJ Cordova.
3. Increased Home Values
The dramatic rise in Arizona home values since 2020 means insurance companies must provide higher coverage limits, directly impacting premiums. As home prices spike, so does the cost to insure them.
4. Industry-Wide Losses
“The insurance companies have been hit so hard with catastrophes, the wildfires, the hurricanes and such, that they’re really having to narrow their focus on where they want to do business and who they want to do business with.” Some carriers have even stopped writing new policies in certain high-risk areas of Arizona.
What This Means for Chandler & Gilbert Homeowners
The impact varies dramatically from one homeowner to the next. “It’s not uncommon to see a 50% or 100% increase.” One Phoenix homeowner saw his policy “suddenly shot up more than $2,000.”
Currently, The average cost of homeowners insurance in Arizona in 2024 is $1,991. However, The average annual cost of home insurance in Arizona is $2,565. That’s 22% higher than the national average of $2,110.
10 Strategic Ways to Lower Your Home Insurance Costs
1. Shop Around Aggressively
This is your most powerful tool. One of the best ways to save on your homeowners insurance premium is to get quotes from different companies. Aim to get quotes from at least three insurers before making a final decision. With 40+ carriers available through brokers like Independent Insurance Brokers Arizona, you have options.
2. Improve Your Credit Score
Homeowners with poor credit in Arizona pay an average annual premium of $9,384 for homeowners insurance, which is $7,393 more than the state average of $1,991. Even moving from poor to average credit can save thousands annually.
3. Increase Your Deductible
Raising your deductible from $1,000 to $2,500 can save you about 12% a year on average. Just ensure you have emergency savings to cover the higher deductible if needed.
4. Bundle Your Policies
Combining your home and auto insurance with the same carrier typically saves 10-25% on both policies. Cut costs by bundling your home and auto insurance policies in Arizona.
5. Invest in Home Improvements
Strategic upgrades can significantly reduce premiums:
- Roof Material: Tile roofs, known for their durability, may result in lower premiums. On average, homes with tile roofing could see premiums around $1,894, a slight savings compared to homes with shake-treated roofs, which can average $2,112.
- Fire-Resistant Materials: Homes built with superior construction materials resistant to fire can qualify for lower rates
- Updated Systems: Modern electrical, plumbing, and HVAC systems reduce claim risks
6. Install Safety Features
Security systems, smoke detectors, fire sprinklers, and smart home devices can qualify you for discounts. Some insurers offer specific discounts for water leak detection systems—crucial in Arizona’s climate.
7. Review Your Coverage Annually
Determine your home insurance coverage needs beforehand to avoid purchasing too much. Ensure you’re not over-insured for personal property or paying for coverage you don’t need.
8. Ask About All Available Discounts
When ready to buy, ask agents directly about all discounts you may qualify for, as insurers won’t apply them automatically. Common discounts include:
- Claims-free history
- Loyalty discounts
- Military/veteran status
- Non-smoker discounts
- Professional affiliations
9. Consider Your Location’s Fire Risk
If you’re in a high-risk fire area, some insurers specialize in these properties. State Farm offers the most affordable home coverage for those in high-risk fire areas in Arizona.
10. Maintain Your Property
Regular maintenance prevents claims and demonstrates responsibility to insurers. Focus on:
- Roof maintenance and repairs
- Tree trimming (reduces fire and wind damage risk)
- Proper drainage to prevent water damage
- Regular HVAC maintenance
The Best Insurance Companies for Arizona Homeowners
Based on recent data, these companies offer competitive rates and good service in Arizona:
- State Farm: State Farm offers the most affordable rate for Arizona homeowners, at around $94 per month.
- Auto-Owners: Excellent for customizable coverage options
- Nationwide: Nationwide offers the cheapest homeowners insurance in Arizona if you own a new home or have bad credit.
- USAA: Available only to military families but offers excellent coverage
- Chubb: Best for high-value homes with specialized needs
Looking Ahead: What to Expect
Unfortunately, rates are likely to continue rising. With climate experts expecting a devastating hurricane season, home insurance costs are forecasted to surge even higher in 2025. The key is to be proactive rather than reactive.
Take Action Today
Don’t wait for your next renewal notice to act. As an independent insurance broker working with 40+ carriers, Independent Insurance Brokers Arizona can help you navigate this challenging market. We understand the unique risks facing Chandler and Gilbert homeowners and can find coverage options that balance protection with affordability.
Ready to Save on Your Home Insurance?
Contact Independent Insurance Brokers Arizona today for a comprehensive review of your current policy and quotes from multiple carriers. Our experienced agents will:
- Analyze your current coverage for gaps and redundancies
- Shop your policy with 40+ carriers
- Identify all available discounts
- Recommend strategic changes to reduce premiums
- Provide ongoing support as the market evolves
In this challenging insurance market, having an experienced broker on your side makes all the difference. Let us put our expertise to work for you and help protect what matters most—without breaking the bank.
Remember: The cheapest policy isn’t always the best policy. Work with professionals who understand both coverage and cost to ensure you’re properly protected while maximizing savings. About Independent Insurance Brokers Arizona: As your local independent insurance brokers, we work with 40+ carriers to find the best coverage at the most competitive rates for Arizona homeowners. Unlike single-company agents, we represent you—not the insurance company. Contact us today to discover how much you could save.