Increasing Fire Insurance Costs in Arizona
Flagstaff, Arizona, is grappling with skyrocketing fire insurance rates. In some areas of Arizona’s High Country, homeowners have seen their premiums triple or have even lost coverage altogether.
The Coconino County supervisors have been proactive, organizing workshops and engaging insurance companies to explore potential solutions.
Situated amidst the world’s largest continuous Ponderosa Pine Forest, Flagstaff is undeniably beautiful. Still, Coconino County supervisor Patrice Horstmann acknowledges that residing here comes with its own set of risks.
“We unfortunately rank in the top 4% of regions at risk for wildfires,” she noted.
This high risk is a significant factor driving up insurance costs, with real implications for local residents.
“Homeowners’ insurance premiums are increasing,” she explained. “This is profoundly affecting families and businesses throughout Coconino County.”
In response, the county has been hosting workshops to tackle these escalating costs, with the latest event featuring an insurance representative.
Ethan Orman from the American Real Estate Victim Insurance Association spoke at the meeting.
“The insurance market reflects the actual risk present,” Orman stated. “So, the rising rates and changing coverage are not random; they stem from the losses insurers are facing along with increasing costs.”
He empathized with homeowners’ frustrations but emphasized that higher risks lead to higher costs.
“That’s why insurance companies advocate for stricter building standards, more effective land use strategies, and community-wide mitigation efforts to combat wildfire risks,” Orman commented.
He also stressed that homeowners can help curb rising rates by actively engaging in fire mitigation efforts and supporting county leadership.
Horstmann mentioned ongoing initiatives by the county to lower fire risks through forest management and community education, but she acknowledged that these measures take time to implement.
“That’s certainly the goal, but we’re hoping to find a quicker solution through collaboration,” Holstmann said.
