It’s been an unprecedented year with dramatically modified coverages and rising home owner insurance premiums across the board from insurance providers, so don’t feel alone. The manufactured home sector has been hit particularly hard, depending on the property locations in Arizona and risk of claims.

Factors affecting this include:

• Increases in the severity and number of natural disasters. Arizona has experienced increases in the severity of storms and natural disasters. This means our homes are more frequently exposed to natural disasters and catastrophic events, driving up insurance costs due to increases in the number of claims and severity of losses. Additionally, due to Arizona’s dry climate and expanding development in wildland-urban interfaces (the line, area, or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels), many locations in Arizona are susceptible to wildfire. Summer monsoon storms also cause damage to homes through high winds and hail.
• Increases in home values. When home values increase, more insurance coverage is required to fully insure the home. Higher coverage amounts equal higher insurance premiums.
• Increases in construction costs. Construction costs, including labor and building materials, have surged since 2020. Considering these increasing costs, it will be more expensive to rebuild or repair your home if it were damaged or destroyed. When an insurance company pays out more in homeowners insurance claims, they will increase their premiums to cover the losses.

What you can do to help mitigate the cost:

Although there are some factors affecting the cost of homeowners insurance that are outside of your control, your individual efforts and choices can have a major impact on keeping your costs as low as possible. If you live in a high wildfire risk area, you may find yourself in a situation where some insurance companies are not willing to write coverage for your home.  Fortunately, mitigation tools offer you the opportunity to take action to reduce your home’s risk to wildfire.

• Mitigation is the key. Some of the insurance providers we work with may be more willing to insure your home if you have taken efforts to reduce your home’s risk to wildfire.  Reducing the known risk factors of weather-related events, fire or flooding through mitigation efforts is the best way to control increasing insurance premiums in our state. While there are many different ways to mitigate risk.
• Community mitigation tools. There are many community mitigation tools available to your community, with most focusing on educational resources to understand wildfire risks. We encourage consumers to become involved in community mitigation organizations such as Firewise USA®,  Federal Emergency Management Agency (FEMA) programs, the Federal Alliance for Safe Homes (FLASH), or you can contact your local Fire Department/District to find out about community mitigation efforts in your area.
• Personal mitigation efforts. There are opportunities for individual homeowners to undertake personal mitigation actions, such as keeping your yard clean of flammable debris, understanding how landscaping choices may affect the way fire or embers interact with your home, creating a defensible space around your home and outbuildings, and using fire resistant building materials. There are even smartphone apps that help educate homeowners regarding defensible space options. The National Association of Insurance Commissioners (NAIC) provides some steps you can take to protect your home from wildfires.

These are just some of the considerations, but rest assured that we remain diligent in finding you the best possible insurance coverage at the best price.