Key Points: 

• Arizona report finds no single solution to increased wildfire risk

• Homeowners face rising insurance premiums and nonrenewals in wildfire-prone areas

• Local governments need consistent funding to sustain wildfire mitigation projects 

There is no single all-encompassing solution to increased wildfire risk and the consequential lack of available and affordable property insurance, according to a new state report.

The report comes from the Department of Insurance and Financial Institutions. The Resiliency and Mitigation Council investigated issues of availability and affordability in the homeowners insurance market in areas perceived as having heightened wildfire risk, including forestland and wildland-urban interface areas where homes and development meet unoccupied land. 

The council considered how to reduce the risk of residential structural losses due to wildfires and heard testimony from people affected by significant increases in insurance premiums. It also considered the abnormally high number of policy nonrenewals and the limited availability of coverage in traditional insurance. 

Ten members representing cities, towns, counties, fire districts, fire chiefs, department officials and the insurance industry spent 10 months hosting public meetings and gathering information from various organizations and experts. Neither the council nor department returned a request for comment by the deadline. 

Specifically, according to the department, Arizonans face five issues: rising premiums across the state, nonrenewals in wildfire-prone areas, inadequate coverage, affordability and availability of mortgages and the risk of flooding and mudslides increases after a wildfire, even in areas not considered a flood zone. 

The council did not attempt to make recommendations or endorse a specific measure, but developed a toolkit for members of the public and regional and state leaders to address the issues. 

The council reviewed existing local wildfire mitigation efforts and found the ability of local governments or fire districts to sustain wildfire mitigation projects is highly dependent on consistent funding as well as engagement of local community members. 

Connected to local efforts, homeowners have some steps they can take to reduce the risk of flames reaching their home. Those strategies range from little or no cost to major retrofitting. Efforts include replacing combustible fencing, keeping yards clear of debris, maintaining trimmed trees, removing overhanging branches, installing ember-resistant vents, and installing a Class A fire-rated roof. 

It’s not guaranteed, but insurance companies may recognize those efforts and be willing to underwrite policies for more wildfire resilient homes or provide discounts on a policy, according to the report. 

The council also heard from Dr. Catrin Edgeley, a social scientist and assistant professor in the School of Forestry at Northern Arizona University, where research found that community-level connections are the best for taking action. Her research dates back to 1981, with community surveys conducted in Arizona and New Mexico. 

Another consideration was risk modeling. The council also heard from several firms using different assessment tools. Some, such as ZestyAI, are using artificial intelligence to integrate aerial imagery, building permit data, climatology, real estate information, historical losses, mitigation and peril-specific models to get a comprehensive view of wildfire exposure. This company has been used in Arizona since 2021. 

At its conclusion, the council’s investigation determined that mitigation requires a continual, systematic approach, and improving insurability requires direct action to reduce structural ignition. No single mitigation effort will be enough to significantly reduce fire risk to structures, the council wrote in the report. However, combined mitigation efforts have been shown to reduce the risk of ignition from embers, flames and radiant heat.