Why Arizona home insurance is expensive — and sometimes hard to find

Arizona saw the highest home insurance rate cumulative increase in the country from 2019 to 2024, according to a LendingTree report released this year.

The big picture: The National Oceanic and Atmospheric Administration recorded eight extreme weather events with losses totaling $1 billion or more in the state, including wildfires, drought and heat waves, during that time.

• That was at least a part of the reason rates went up 62%, per the report.

Threat level: In heavily wooded parts of the state, including Heber-Overgaard and Show Low, many homeowners can't even find full-coverage insurance because of the wildfire risk.

• Matthew Baker of Gilbert-based Strong Tower Insurance Group told Axios his firm often has to turn away homeowners in these areas because large insurance companies they work with won't insure high-risk properties anymore.

Between the lines: Homeowners in Northern Arizona might still find some companies willing to insure them, but they'll probably have limited coverage, high premiums and high deductibles, Baker said.

What we're watching: Baker said insurance prices are based on pooled risk — meaning everyone's rates go up when more people have to file claims.

• That means the damage from Hurricane Helene — and the likelihood of more natural disasters across the country — is likely to increase prices nationwide.