A homebuyer comparing home insurance quotes on a laptop in Tucson, Arizona

How can Tucson buyers lower their home insurance costs?

Compare multiple quotes before closing, review your policy every year, and choose a home with insurability in mind. Intercontinental Exchange (ICE) reports that homeowners who switched carriers over the past year cut their premiums by 6.6% on average, about $440 a year less than those who stayed, while homeowners who stayed saw a 10.4% increase. Insurance now makes up 9.6% of the average mortgage payment nationally, but its share varies widely by market, so ask for quotes on the specific Tucson home you’re considering.

By Michelle Ripley November 4, 2026

When you’re planning a move, every monthly cost counts. That’s why it’s frustrating to watch home insurance keep creeping up.

The good news is that the increases are slowing, and you have more control over this cost than you might think. Here’s what I’d want every Tucson buyer to know.

Why insurance matters to your monthly payment

According to ICE’s September Mortgage Monitor, the average single-family mortgage holder paid $209 a month for property insurance in the second quarter. That’s 9.6% of the average monthly mortgage payment (including principal, interest, taxes, and insurance) and nearly 80% more than at the start of 2020. Premiums rose 8.7% over the past year, but ICE says the pace of increase is finally slowing.

The share varies a lot by market. Insurance made up 24.3% of the average mortgage payment in New Orleans, compared with 4.3% in San Jose. The national average can’t tell you what a policy will cost on a home in Sam Hughes, Oro Valley, Marana, or Vail/Sahuarita, so the only reliable number is a quote on the actual property.

That matters because lenders count insurance when they calculate what you can afford. Getting an accurate estimate early helps you avoid a surprise later. To see how the rest of your payment might look, see what credit score you need to buy a home in Tucson.

Shopping around really does pay off

Here’s where you have a say. In the ICE report, homeowners who switched carriers over the past year reduced their premiums by an average of 6.6%, the largest savings ICE has recorded since it began tracking this in 2013. Homeowners who stayed with their current carrier saw an increase of 10.4%.

That works out to about $440 a year for the people who switched, compared with those who stayed. And they didn’t give up protection to get it: their deductibles were 1.4% lower, and their coverage limits were 7.3% higher. Even so, only about 11% of mortgage borrowers switched providers over the year.

To put $440 in perspective, that’s about $37 a month. It’s not a game-changer on its own, but it adds up, especially alongside other savings. For example, on a $308,000 loan (20% down on Pima County’s $385,000 median) at 7.32%, the average 30-year rate in Freddie Mac’s October 22 survey, a rate half a percentage point lower would save about $104 a month.

The same idea applies to first-time buyers. Get multiple quotes before you pick a provider, and once you’re settled in, review your policy every year when it renews. You’re not locked in to the first price you get.

Here’s how I’d approach it:

  1. Get quotes early. Don’t wait until the last minute. Under the standard AAR purchase contract, you have a 10-day default inspection period, which is a good window to collect quotes and understand what your lender will require before closing.
  2. Compare more than the price. Look at the deductible, the coverage limits, and what’s excluded. Flood damage is typically not covered by a standard homeowners policy, so ask about separate coverage if it applies to the property.
  3. Know how the home affects your cost. Age, roof condition, and past claims can all play a role, so ask your insurance agent which features matter. If your inspection turns up concerns, you can request repairs or credits through the BINSR (Buyer’s Inspection Notice and Seller’s Response).
  4. Consider a newer home. John Burns Research and Consulting estimates that newly built homes are 10% to 15% less expensive to insure than older ones nationally. That won’t be the right fit for every buyer, but it’s one more reason to compare. I cover that market in can you negotiate with a Tucson home builder.
  5. Use today’s market. According to the October MLSSAZ Market Snapshot, 50% of active Pima County single-family listings have cut their price, there are about 5.5 months of supply, and homes closed about 1.85% below asking in October. On the $385,000 median, that’s roughly $7,100. Ask about a seller credit toward closing costs, which often include prepaid insurance.
  6. Buying a condo? You’ll typically need your own policy for the inside of your unit in addition to the association’s coverage, so ask your insurance agent what each one covers. Are condos a more affordable way to buy in Tucson goes deeper on that market.
  7. Buying as an investor? Ask your insurance agent whether a standard policy fits a rental, and remember that short-term rental regulation remains a live issue in this market.
  8. Know your closing costs. Arizona has no meaningful transfer tax, just a flat $2 recording fee, and your closing runs through escrow.

The Bottom Line

Home insurance is a bigger part of the monthly payment than it used to be, but you have more control over it than it may seem. Compare a few options before you buy, review your policy every year, and lean on trusted local professionals as you plan your next move.

If you’re thinking about buying in Tucson, I’m happy to walk you through the numbers. Reach out anytime.

Frequently Asked Questions

How much of a mortgage payment is homeowners insurance?

Insurance made up 9.6% of the average monthly mortgage payment in the second quarter of 2026, according to ICE. The average single-family borrower paid $209 a month. It varies by market, from 24.3% of the payment in New Orleans to 4.3% in San Jose, so ask for quotes on the specific Tucson home you’re considering.

Does switching home insurance companies really save money?

On average, yes. ICE found that homeowners who switched carriers over the past year reduced their premiums by 6.6%, while those who stayed saw a 10.4% increase. Switchers saved about $440 a year compared with those who stayed, with lower deductibles and higher coverage limits.

When should I shop for home insurance when buying in Arizona?

Early. The standard AAR purchase contract gives you a 10-day default inspection period, which is a good window to collect quotes. Your lender will also require proof of coverage before closing, so ask your lender and your insurance agent what’s needed.

Are newer homes cheaper to insure?

Often, but it depends on the home. John Burns Research and Consulting estimates that newly built homes are 10% to 15% less expensive to insure than older ones nationally. Roof, age, and location all play a role, so get quotes on the specific homes you’re considering.

Does homeowners insurance cover flood damage?

Typically not. Flood damage is generally not covered by a standard homeowners policy, so ask your insurance agent about separate flood coverage if it applies to the property you’re considering.

About Michelle Ripley Michelle Ripley is the owner and lead advisor of Ripley’s Real Estate Group with Keller Williams Southern Arizona, ranked among the top 1% of agents nationally. She serves buyers and sellers throughout Tucson, Oro Valley, Marana, and Pima County — from first-time buyers to luxury clients — with an education-first approach backed by data-driven marketing and deep local expertise. A proud Oro Valley resident, Michelle is known for treating every client relationship with the same integrity and care that built her reputation as one of Southern Arizona’s most trusted agents.