Arizona’s record-high home insurance costs have prompted the state agency that regulates insurers to form a group to address the growing issue and find some relief for the state’s homeowners.Help is particularly needed for homeowners in Arizona’s many areas at high risk of fire.“We understand that high insurance premiums are a financial burden for Arizona homeowners and an unfortunate symptom of the heightened risk from wildfires,” said Arizona Department of Insurance and Financial Institutions Director Barbara Richardson. “The ultimate goal is to save people’s homes and make our communities more resilient to fires.”Arizona home insurance premium costs have shot up 62% since 2019, according to a recent study from LendingTree. That’s the highest increase in the U.S.Many Arizona homeowners are not only facing soaring insurance costs, but some in areas that are at high risk for fires can’t find insurers to cover their houses.Real estate:Can an HOA prohibit the American flag from being hung upside down?The council, with 12 members from cities, towns, counties, firefighting authorities, the insurance industry and tribal nations, planned to start meeting on Dec. 11 and hand state policymakers information for solutions to the home insurance affordability problem next year.Arizona has been affected by eight extreme weather events with losses exceeding $1 billion each since 2019, according to the National Oceanic and Atmospheric Administration.Five of those extreme weather events were droughts that have made wildfires worse.“Wildfires are no longer seasonal, and those are driving up insurance costs,” said Lori Munn, deputy director of insurance in the Arizona Department of Insurance and Financial Institutions. “But there are several factors driving up costs for homeowners.”She said higher home values and construction costs also increase home insurance costs.Munn also said Arizona laws limit the agency’s control over rates.Arizona’s average homeowners insurance premium is now $2,345, according to LendingTree’s data.The state agency doesn’t report average rates by insurer. But Munn said Arizona should soon get a new national report that drills down to home insurance premium costs by ZIP code.A main goal of the new Arizona insurance council is to figure out ways to mitigate wildfire risk.Homeowners can find federal and state grants that pay for efforts to reduce a home’s wildfire risk on the Arizona Department of Insurance and Financial Institutions website at https://difi.az.gov/grants-wildfire-mitigation.Reach the reporter at catherine.reagor@arizonarepublic.com or 602-444-8040. Follow her on X, formerly Twitter: @CatherineReagor. …
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