Black Canyon City family dropped from homeowner’s insurance months before fire

BLACK CANYON CITY, AZ (AZFamily) — A couple in Black Canyon City lost everything when an electrical fire destroyed their home. To make matters worse, their insurance company dropped them right before the fire, so they weren’t covered.

Their daughter said their homeowners’ insurance company chose not to continue coverage because of a fire claim made the year before.

Insurance Brokers of Arizona said it’s a trend happening more and more to homeowners in the state.

Marilyn Barnhill’s mom and stepfather, Charlotte Gibson and Charles Hughes, had been living at the home for the past four years until last month.

“It’s heartbreaking. They don’t have anything else to go on,” she said.

Barnhill said days before the fire, the breaker at the home kept tripping. They hired an electrician and planned for him to fix it over the weekend, but the fire ignited on Nov. 1.

Barnhill’s 70-year-old mother made it out after being rescued by neighbors, while her stepdad suffered burns.

“He got his back burned and his feet and his legs got burned really bad,” she said.

He was in the burn center and rehab center for two weeks, but the couple is now living in a temporary trailer on Barnhill’s property.

“If I have to max myself out and go bankrupt to make sure they have a place to live in and be comfortable, that’s what I’ll do but it’s not what I want to do,” said Barnhill.

Typically, homeowners insurance would help cover the costs of the damage, but Barnhill’s parents were uninsured.

“When they sent their renewal money for the next year, they canceled them and sent it back,” she said.

Barnhill said they spent the next two months hunting for insurance.

“A lot of companies don’t want to insure these older manufactured homes and they were just getting turned down,” she said.

If this happens, the Insurance Information Institute suggests checking with your insurance company to see if there is anything you can do to retain your policy, such as making repairs.

Local insurance brokers who sell insurance for several companies can also help you find coverage if you are having trouble finding it.

The Arizona Department of Insurance and Financial Institutions regulates non-renewals and created a council to address the growing issue.

The Council’s goal is to provide solutions and strategies to state policymakers. An inaugural meeting is scheduled for Dec. 11 at 1:00 p.m. Attendance is available in person and virtually. Anyone is encouraged to attend.

According to experts, people still have options even if someone is considered “high-risk” because of a previous claim.

Under Arizona law, an insurer can only cancel a policy for the following reasons:

• Non-payment of premium
• Conviction of a crime arising out of acts that increase the risk
• Fraud or misrepresentation in obtaining the policy or filing a claim
• Negligent factors or omissions that increase the hazard insured against
• Substantial change in the risk
• Failure of the insured to eliminate or reduce conditions of the premises that will increase the probability of future losses

Cancellations of homeowners insurance policies are uncommon in Arizona. However, some reasons may be used to not renew a policy.

A non-renewal is the insurer’s decision not to renew a policy for a successive policy period. Non-renewals are much more common, and insurers are required to provide at least 30 days’ notice before the end of the policy period.

An insurer may also condition a renewal on reducing limits or eliminating certain coverages in the policy, which also requires at least 30 days’ notice.

If you’d like to help the family affected by the blaze, you can donate to their GoFundMe.

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