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.
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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.
