PRESCOTT, AZ — As more homes get built near wildland, homeowners and prospective homebuyers in fire-prone areas are finding it hard to get insured.
Neighbors in Prescott are asking local and state representatives for more help in navigating insurance changes as people increasingly report being dropped by carriers, denied renewals, or denied altogether while trying to buy.
Realtor Michelle Clustka said she personally knows people who’ve been in this position.
“They have been denied by 45 different insurance companies, yeah, it’s the wildfire insurance,” Clustka said. “Most of them are denying them on a blanket level, it’s the area. They’re not even getting the opportunity to say come look at the property, it’s been Firewised.”
A "Firewise” community means that neighbors have worked together to minimize fire risks, create defensible spaces around homes and spread education about best practices.
Insurance broker Lori Sell said even with Firewise designations, companies are tightening down their wildfire scoring for properties in areas near forests and other high-risk spots.
“It’s affecting not just real estate, but you think about builders and title companies where properties can’t get closed,” Sell said. “It’s become a really big issue.”
Recently, the Arizona Department of Insurance and Financial Institutions created the Resiliency and Mitigation Council which meets monthly to investigate the affordability and availability of insurance in forested areas and wildland-urban interface areas.
