Insurance industry representative to discuss industry perspective, risk assessments and strategies to help Northern Arizonans protect property and maintain coverage

FLAGSTAFF, Ariz. – Following a packed first meeting in June that drew significant public participation, the Coconino County Board of Supervisors are inviting residents back for the second in a series of Board work sessions on the Wildfire-Insurance Crisis. The session will be held from 2 to 3 p.m., Tuesday, September 9, at the Coconino County Administrative Building, 110 E. Cherry Ave., Flagstaff. The link to stream the meeting is youtube.com/coconinocnty.

This time, the Board and community will hear directly from the insurance industry. Ethan Aumann, Senior Director of Environmental Issues and Resiliency with the American Property Casualty Insurance Association (APCIA), will provide insight into how insurers view wildfire risk, the tools being used to assess it and the steps communities can take to help keep coverage both available and more affordable.

“Skyrocketing homeowners insurance premiums and the cancellation of policies are rocking our communities and jeopardizing people’s budgets and home security, having a devastating impact on local families and businesses,” said Board of Supervisors Chair Patrice Horstman. “Unfortunately, I am hearing almost daily from residents who have been notified that they have been dropped from their homeowner insurance coverage and are frantically searching for alternatives.”

Aumann says characterizing wildfire risk is one of the most complex challenges facing insurers, involving many variables such as terrain, vegetation, wind speed, drought and community preparedness.

“Small changes in any of these factors can dramatically influence fire spread and intensity. Insurers are using advanced tools—from satellite data to catastrophe models—to better understand these risks, but no model is perfect. Wildfires will continue to occur as they have throughout history. That’s why science-based mitigation, from ‘hardening’ homes to strengthening community-wide fire protection plans, is so critical to limiting losses and keeping insurance available.”

As wildfires continue to burn hotter, last longer and threaten more homes, Coconino County ranks in the top 4 percent of U.S. counties for wildfire risk. In addition, nearly half of wildfire costs fall on local communities.
“Coconino County, the City of Flagstaff and the Forest Service have engaged in massive, landscape-scale forest restoration projects to protect communities and watersheds, but the threat of destructive wildfire has now reached the world of homeowner insurance, with coverage for some county residents increasing by as much as 300%,” said County Flood Control District Administrator Lucinda Andreani.

Aumann says insurance companies are focused on and committed to helping communities protect their homes and recover from wildfires when they occur. He points to Paradise, California, a town nearly destroyed by the Camp Fire in 2018.

“They have embraced the Wildfire Prepared Home model developed by the Insurance Institute for Business and Home Safety (IBHS) and are building back with that standard in mind and a community-wide plan to ‘harden’ homes, businesses and neighborhoods, using noncombustible materials and hardscaping five feet around the perimeter of structures.”

The IBHS requirements also address the risk of embers with vent covers and screens, he said, noting that up to 90 percent of wildfire home losses are caused by embers, that could be sparked by fires miles away.
“Coconino County is committed to bringing all stakeholders together—homeowners, insurers, builders and government leaders—so we can find meaningful solutions,” said Horstman.

For more information, including materials from the June and future work sessions, visit coconino.az.gov/wildfireinsurancecrisis.
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