Homeowners devastated as insurance companies make drastic policy change: 'You may lose your mortgage'

Residents in one Arizona county are facing difficulties insuring their homes from devastating wildfires, and local officials are calling on insurers to partner with them to find solutions. 

What's happening?

Coconino County in Arizona has a high fire risk, greater than that of 96% of the rest of the U.S., according to AZFamily. Local officials have said that the county has faced nine wildfires that have negatively impacted the local economy, public health, and environment since 2010.

As a result, insurance companies have hiked up insurance rates and even dropped fire coverage altogether. This has forced local residents into a difficult position, putting their sense of security and stability at risk. 

"Their fire insurance has skyrocketed, or they have lost their ability to get insurance, which is even more dangerous," Coconino board supervisor Patrice Horstman said to AZFamily. "Because they've got a mortgage, because as you know, you lose your fire insurance, you may lose your mortgage."

Why is fire insurance important?

This is the latest amid the trend of big insurers dropping natural disaster coverage due to increased risks. The continued use of dirty energy exacerbates rising global temperatures, which puts communities at risk of extreme weather events and makes it more difficult for insurance companies to provide coverage.

Extreme weather events like wildfires and hurricanes have decimated homes in recent years, and insurance companies have not been able to keep up with the claims. 

Dropping coverage comes at a cost to homeowners, and not just in regard to repairs. These policy changes also impact people's mortgages, which are often dependent on owners insuring their properties. 

What's being done about insurers dropping fire insurance?

Local officials are trying to work with insurance companies to reach a compromise for keeping fire coverage, but ultimately, they have very little power in getting them to alter their policies. 

"The board of supervisors has no authority over insurance companies," Coconino County Flood Control District spokesperson Lucinda Andreani said to AZFamily. "The state has authority over the insurance companies, to some degree, they have authority. There's very little federal regulations."

In the meantime, residents have been advised to reduce fire risks in their homes while officials work on thinning out local forests in an effort to mitigate the issue. 

Individuals can do their part to curb these devastating weather events by educating themselves about critical climate issues and reducing the amount of dirty energy they use. This way, we can work together to limit the amount of heat-trapping pollution we put into the atmosphere that is contributing to extreme weather, which allows us all to work toward a safer, more stable, healthier future.

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