Arizona homeowners insurance guide

Short answer: Arizona's insurance regulator, DIFI, calls wildfire the predominant risk in Arizona, in desert as well as forested areas, followed by monsoon wind and hail and plumbing leaks. Arizona law doesn't require homeowners insurance, but lenders do. Insurers must give at least 30 days' notice of non-renewal, and if they non-renew over a fixable condition, such as brush within 10 feet of the house, they must give you a chance to fix it. Rather than a state FAIR Plan, DIFI keeps a list of insurers willing to write homes in higher-risk wildfire areas.

This guide is general information for Arizona homeowners. It isn't legal advice. Your policy wording controls.

The risks Arizona's regulator names

The Arizona Department of Insurance and Financial Institutions (DIFI) homeowners FAQ says:

• Wildfire is the predominant risk in Arizona, and desert areas can carry significant risk, not just forests and the wildland-urban interface.
• Monsoon storms cause damage through high winds and hail.
• Plumbing failures are cited by insurers as causing a significant number of water damage claims. DIFI suggests a leak detector.
• Flooding after wildfire increases in burned areas. Flood requires a separate policy (FloodSmart).

Step 1: Mitigate, then document it

DIFI says homeowners are the most important factor in reducing risk. It points to defensible space, fire-resistant materials, community programs such as Firewise USA and your local fire district. Keep photos and receipts so your agent can show insurers the work.

Step 2: If you're non-renewed, check the facts and the fix-it window

DIFI says non-renewals need at least 30 days' notice, and so does a renewal conditioned on lower limits or removed coverage (A.R.S. §20-1652). If a non-renewal is based on a specific condition, such as trees and shrubs within 10 feet of your home, the insurer must tell you and give you a chance to remedy it, usually 30 days. If you haven't fixed it by expiration but paid the renewal premium, you get an additional 30 days. If the notice uses wrong data, such as square footage or roof type, ask for the data and send corrections. Details: Arizona homeowners non-renewal rules.

Step 3: Where to look when coverage is hard to find

DIFI maintains a list of insurers that have said they're willing to cover homes in higher-risk wildfire areas, noting which recognize mitigation. Ask your agent to work through it and to check surplus lines. See FAIR Plan vs. surplus lines home insurance.

Step 4: Think twice before small claims

DIFI cautions that filing a claim close to your deductible can raise your premium at renewal, and that homeowners should consider covering small losses themselves. After a storm, verify any contractor at the Registrar of Contractors and any adjuster at DIFI license search.

Step 5: Claim deadlines

Under A.A.C. R20-6-801, insurers must acknowledge a claim within 10 working days, accept or deny within 15 working days after a properly executed proof of loss, and pay first-party claims within 30 days after an acceptable proof of loss. More: Arizona insurance claim deadlines.

See our tables: non-renewal notice rules by state, insurance claim deadlines by state and home insurance claim and lawsuit deadlines by state.

Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Arizona.

Frequently asked questions

Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.