Arizona Property Insurance Forum and Town Hall

Earlier this month, the Civic Responsibility Alliance (CRA) of Dove Mountain hosted a forum and town hall about increased insurance rates expected in Arizona due to the accelerating risk of wildfire and other factors. Wildfire season is year-round now, and this topic is of great concern to many homeowners here in LD17.

The speaker was Lori Deaver Munn, Deputy Director of Insurance and Finance Institutions (DIFI) for the state of Arizona. She explained how the state regulates insurance companies but has limited authority to influence rates.  Unlike some states, Arizona insurance rates are Use and File, meaning an insurer can start charging a rate change immediately, then file that change with DIFI within 30 days.  There are a few instances where DIFI can examine rate changes including where an insurer charges excessive rates in comparison to its competition.  Insurers in Arizona are not allowed to raise rates due to events in other states; however, the increased risk from wildfire due to climate change and drought in this state and the higher costs of replacement are some of many acceptable reasons to charge more.

Fire mitigation around your property is key.  Many factors outside your control affect the cost of insurance, but individual and community efforts can have an impact on keeping costs as low as possible.  This webpage (https://difi.az.gov/homeownersinsurance) has an excellent explanation of the factors impacting rates and what you can do as a homeowner and community member to keep costs as low as possible.

Both of our LD17 House Representatives in Phoenix, Kevin Volk and Rachel Keshel, were present to give an update on bills they are working on and to take questions from the audience.  Kevin told us about bills regarding insurance and wildfire threats.  HB2268 would create a wildfire prevention authority and another bill would require 60 days’ notice before homeowners’ insurance could be cancelled.  Rachel recounted the history of HB2201 that would provide immunity for utility companies from wildfire lawsuits.  This bill came back to the floor three times for a vote, but through a bipartisan effort, it was eventually defeated.

Both Kevin and Rachel also took questions regarding the state of education funding in Arizona.  Rachel explained that she is a supporter of small government but also supports public schools and school choice (vouchers).  She feels the problem in Arizona is that not enough money is going to teachers and classrooms but is instead funding the bureaucrats.  Per Kevin, an executive order from the White House cannot eliminate a federal department like the Department of Education, but he acknowledged Arizona will need to make up any funding that is lost.  How that can happen remains to be seen. 

The turnout for this town hall was tremendous, with constituents from both sides listening and acting respectfully. Many thanks to Lloyd Kirsch, the chair of the Dove Mountain CRA, for organizing this great event.