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HB 2800

fire insurance; policy cancellation; prohibition

57th Legislature - First Regular Session Introduced by Pamela Carter and 6 co-sponsors

Arizona prohibits fire insurers from canceling residential policies based solely on wildfire risk or high-fire-zone location, ensuring coverage access in fire-prone areas.

Senate Second Reading
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Bill Summary · HB 2800

Legislative bill overview

HB 2800 prohibits fire insurance companies from canceling or non-renewing residential property insurance policies solely based on wildfire risk or the property's location in a high-risk fire zone. The bill aims to ensure continued insurance access for homeowners in fire-prone areas of Arizona, particularly in rural and wildland-urban interface communities.

Why is this important

Arizona has experienced increasing wildfire severity and frequency, leading insurers to exit the market or deny coverage in high-risk areas, creating an insurance availability crisis for thousands of homeowners. This bill directly addresses affordability and access concerns by preventing insurers from using wildfire risk as a standalone reason for policy termination, potentially keeping insurance markets more stable in affected regions.

Potential points of contention

  • Insurer concerns: Insurance companies argue that restricting cancellations based on wildfire risk may force them to absorb unsustainable losses, potentially leading them to exit the Arizona market entirely or raise premiums on all policyholders
  • Coverage scope ambiguity: The bill's language around what constitutes cancellation "solely based" on fire risk may create legal disputes if insurers cite multiple reasons for non-renewal
  • Market stability: Critics worry the mandate could destabilize the private insurance market, ultimately shifting more Arizonans toward the state insurer of last resort (FAIR plan), which typically charges higher premiums

Compiled from official sources — confirm details with the bill’s official record.

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