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Prescott Homeowners in High-Fuel Zones: How Can You Stop Wildfire-Insurance Rate Shock?

9 June 2025

A clear, fact-checked guide for residents of Prescott, Dewey-Humboldt, and surrounding WUI neighborhoods.

What’s Happening in 2025?

  • Premiums surged another 12–18 % on average for properties inside the Wildland–Urban Interface (WUI).
  • Policy non-renewals are rising as carriers exit high-risk ZIPs, prompting a state-level investigation into affordability.
  • Deductibles jumped to $5 k–$10 k on many admitted-market policies for wildfire losses.

Why Are Rates and Non-Renewals Climbing?

  • Claim severity: Statewide wildfire payouts have tripled since 2018, pushing insurer loss ratios over 70 %.
  • Reinsurance costs: Global treaties renewed at double-digit increases in January 2025, adding pressure to retail pricing.
  • Volunteer & distant fire protection: Much of Yavapai County sits in ISO Public Protection Class 9 or 10, signalling longer response times and limited water supply.
  • Regulatory lag: Arizona tracks rates but not non-renewal data, making risk hotspots harder to stabilize.

Who Is Hit Hardest?

  • Homes with wood-shake or Class-C roofs older than 15 years.
  • Properties over 1,000 ft from a hydrant or lacking a 2,500-gallon water source.
  • WUI parcels near Granite Mountain, Thumb Butte, and the Williamson Valley corridor.

Where Can You Still Find Relief?

  • Defensible-space grants: Prescott Fire Department offers up to $500 matching for brush-clearing and ladder-fuel removal.
  • Firewise USA® discounts: USAA and several regional carriers give 5–15 % premium credits for homeowners in recognized communities.
  • HB2384 incentive: Insurers must factor local Firewise designations into rates for towns under 150,000 population—Prescott qualifies.
  • 60-day non-renewal pause: Under HB2800, insurers cannot cancel or refuse to renew within 60 days after a declared wildfire emergency.

When Should You Act?

  • 60 days before renewal—time to document mitigation and request a re-inspection.
  • Immediately after upgrades like a Class-A roof or hardscape perimeter—submit photos and contractor invoices for mid-term premium credits.
  • Before escrow closes—verify insurability and projected cost before buying a WUI home.

How to Lower Premiums Without Sacrificing Protection

  • Create 100 ft of defensible space: Trim trees, clear brush, and screen vents to block embers.
  • Upgrade roofing & siding: Class-A shingles and non-combustible siding can shave 10–20 % off wildfire surcharges.
  • Add on-site water: A 2,500-gallon tank or dry hydrant may improve ISO rating and attract admitted carriers.
  • Increase the all-peril deductible strategically (e.g., $2,500 vs. $1,000) to offset new wildfire deductibles.
  • Shop surplus-lines as a bridge: If you’re dropped, place coverage in the E&S market while finishing mitigation—then re-apply to the standard market next cycle.

Key Take-Aways for Prescott Homeowners

  • Expect double-digit premium hikes in high-fuel zones through at least 2026 unless loss severity drops.
  • Mitigation proof matters: Firewise participation, new roofs, and water sources can move you back into an admitted carrier.
  • Early, documented shopping is cheaper—and safer—than scrambling after a non-renewal notice.

Sources

Need a wildfire-risk check-up? Inszone’s Prescott team can review your policy, advise on mitigation credits, and help you secure the best available coverage.

Brennan Kunitz

Personal Sales Team Manager

Brennan Kunitz is a Personal Sales Team Manager at Inszone Insurance Services, joining the company in April 2025. With over six years of experience in personal lines insurance on the carrier side, Brennan has a strong background in both direct sales and sales team leadership. He is licensed in Property & Casualty as well as Life insurance in the state of Arizona and is currently pursuing a degree in Engineering at Chandler-Gilbert Community College.

Brennan is passionate about creating an experience for clients that is rooted in education and trust. He believes that when customers understand their coverage, they can make more confident decisions and feel secure in their protection. His leadership style reflects this same mindset, helping his team prioritize clear communication and client-focused service.

Away from work, Brennan enjoys spending quiet moments at home or exploring nature with his girlfriend and their two dogs on camping trips and hikes. He’s also an avid reader and finds one of his favorite ways to unwind and recharge at the end of the day is by reading or listening to a good book.

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