Tusayan, Arizona – Rising Fire Insurance Rates Create Challenges

Residents and business owners in Arizona, particularly in Tusayan, are facing significant increases in fire insurance rates, with some seeing hikes of 300% to 400%. This spike is troubling, especially given the area’s location near forested regions, where fire insurance is almost a necessity.

Red Feather Lodge, a hotel in Tusayan, has felt the impact. General Manager Julie Aldaz, who has been with the lodge for 25 years, mentioned they’ve struggled to secure fire insurance in recent years.

“It’s like a well-known provider that typically offers us coverage,” Aldaz noted. “But we’ve lost our policy three times now.” In 2023, the lodge spent $500,000 for $80 million in coverage. Now, they’re paying $1 million for just $20 million. This puts renovations on hold, making it tough to manage costs. “It’s a real balancing act,” Aldaz admitted.

The issue extends beyond business; it affects the local community as well. Mayor Clarinda Bale pointed out that many residents are also being hit hard, with some unable to afford insurance at all.

“In my case, my rates have gone up about 400% compared to a decade ago,” Bale said, expressing concern for those unable to rebuild after a potential disaster.

Tourism has also been affected. Aldaz noted that numbers have been declining since 2019, and current fires at the North Rim are further impacting visitor numbers.

While both Aldaz and Bale are uncertain about the way forward, they’re hopeful for state intervention. “We need to do something. With the North Rim fire, our worries are increasing,” Bale stated.

This year, Arizona established the Resilience and Mitigation Council to look into insurance availability and affordability in forested areas.