Why Wildfire Standards Matter
Derek Kartchner | Gila Insurance
In Arizona, we are generally buffered from many natural disasters. While we do experience the occasional wind or hail storm, and flooding from fierce monsoon rains can occur, our greatest ongoing risk is wildfire. With wildfires becoming more frequent and intense, insurance companies and regulators are increasing their demands on how homes are built or renovated in wildfire-prone areas. For real estate investors, it’s critical to pay attention to building codes, insurance requirements, and smart construction decisions to keep projects viable, insurable, and attractive to future buyers or tenants.
If you doubt this, just look at current trends. It’s becoming increasingly difficult to secure reasonable insurance premiums for properties in the White Mountains, Flagstaff, Munds Park, Sedona, or even on the edges of the Valley of the Sun or Tucson. This isn’t just “Chicken Little” talk—the challenge is real and growing. So, what can we do? Here are a few practical ideas:
Three Essential Strategies
Create Space: Most insurers require at least 100 feet of “defensible space”—a buffer around the property that’s clear of dead trees, dry grass, and brush that can feed wildfires. This isn’t just a recommendation but is often necessary for obtaining affordable property insurance. Yes, 100 feet sounds like a lot, but if you’ve been to Flagstaff recently, you know the community is taking this seriously. The need is urgent.
Choose Smart Materials: Fire-resistant materials—such as Class A or non-combustible roofs, fiber cement or stucco siding, and double-pane windows—not only help with code compliance but also protect your investments, lower repair costs, and make properties more appealing to buyers concerned about safety.
Stay Code-Compliant: Many states, especially California, enforce stringent fire-resistance standards for homes in wildfire zones, covering everything from siding and vents to decks and landscaping. Savvy developers get ahead of these requirements to avoid costly delays or retrofits. While Arizona’s codes may not always be as strict, investors looking north (or any wildfire area) should stay alert to what’s happening in nearby markets.
Investor Impacts
Insurance Nuances: Insurers may reduce coverage, raise deductibles, or significantly increase rates for properties lacking fire-resistant features. Be prepared for a tougher insurance landscape—always confirm you can obtain coverage for properties in northern Arizona, as options are continuously shifting. Expect higher premiums and, potentially, coverage from carriers you may not recognize.
Market Benefits: Buyers are increasingly aware of wildfire threats. Homes built to high standards stand out—and often command higher sale prices.
Risk Management: Treat fire-resistance features as a fundamental business decision, not just another regulatory hurdle. Investing up front in fireproofing can save enormous headaches if a wildfire ever threatens your property.
Key Takeaway
For real estate investors, facing the wildfire challenge means thorough preparation: create defensible space, use resilient materials, follow strict building codes, research insurance options, and be ready for higher premiums. These efforts make properties safer, more marketable, and more insurable, resulting in stronger short- and long-term returns.
Source: CRC Group, “Building Against the Blaze: Common Residential Construction Standards in Wildfire Zones.”