It is important to understand that DIFI has no statutory authority to set or approve homeowners insurance rates in Arizona. DIFI does have statutory authority and processes in place to monitor rate increases and ensure insurance companies are complying with Arizona insurance laws. 

Insurance consumers are encouraged to pay close attention to the limits of coverage provided in a policy and ensure that they are appropriate – an agent can assist. Consumers are also encouraged to understand how deductibles (the amount the policyholder must pay out-of-pocket) can change the cost of insurance. 

DIFI’s mission is to protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources. In furtherance of our mission, DIFI is focusing on:

• Helping consumers manage the severity of risks through public outreach and education. DIFI is committed to helping bridge the gap between insurers and consumers. We believe well-informed consumers can make better decisions regarding their coverage choices within homeowners' policies. Given that the mitigation of risk is so important in the final cost of insurance, DIFI is prioritizing sharing information on mitigation strategies and programs that may save consumers money.
• Encouraging the adoption of mitigation strategies to make communities more resilient to wildfires. DIFI is focusing on reducing risk because it offers a better chance of long-term sustainability of insurance markets in disaster-prone areas. Current mitigation initiatives and programs include addressing fire spread, accessibility, defensible space, water supply, etc. for buildings constructed near wildland-urban interface areas that are susceptible to wildfire.
• Working with insurers to recognize mitigation programs. When communities work together to implement risk mitigation strategies, those efforts may be recognized by insurers as part of the overall strategy to prevent the loss of individual homes in those communities. DIFI is committed to working with insurers to recognize these programs in ways that result in cost-savings to policyholders within those communities.
• Providing resources for homeowners to find coverage. DIFI maintains a list of insurers who have indicated a willingness to provide coverage in areas of the state at higher risk for wildfire. Not all insurers listed will provide coverage in all areas and some may not offer competitive prices, but DIFI will maintain this list of insurers to give consumers and agents leads on finding homeowners coverage. Additionally, those insurers who recognize mitigation efforts will be noted. 
• Encouraging direct consumer-insurer engagement. As changes occur in people’s lives, their insurance needs change as well. Annual insurance reviews, or “check-ups,” are a great way to communicate with your agent or insurance company to ensure existing coverages, deductibles, and limits remain the most appropriate for your specific needs. Learn more about questions to ask your homeowners insurance agent or company.