HR 7462 — Wildfire Insurance Coverage Study Act of 2024

7462 IntroducedReported in House (IH)](RH)] <DOC> 118thUnion CONGRESSCalendar 2dNo. Session H.

489 118th CONGRESS 2d Session H.

7462 To[Report requireNo. the Government Accountability Office to conduct a study regarding insurance coverage for damages from wildfires, and for other purposes.

118-589] To require the Government Accountability Office to conduct a study regarding insurance coverage for damages from wildfires, and for other purposes.

which was referred to the Committee on Financial Services July 18, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on February 26, 2024] _______________________________________________________________________ A BILL To require the Government Accountability Office to conduct a study regarding insurance coverage for damages from wildfires, and for other purposes.

This Act may be cited as the ``Wildfire Insurance Coverage Study Act of 2023''.2024''.

GAO STUDY REGARDING INSURANCE FOR WILDFIRE DAMAGE.DAMAGE .

(B) identifying mitigation practices that would assist in reducing premiumscosts and risks for insurance policies covering damages from wildfires;

(2) Existing state of coverage.--With respect to the existing state of homeowners insurance coverage and commercial property insurance coverage for damage from wildfires in the United States-- (A) the extent to which private insurers have, during the 10-year period ending on the date of the enactment of this Act, increasedadjusted rates, policyholder cost-sharing provisions, or both for such coverage (after adjusting for inflation) and the geographic areas in which suchadjusted increased rates, cost-sharing,policyholder cost- sharing, or both applied;have increased;

(B) the extent to which private insurers have, during the 10-year period ending on the date of the enactment of this Act, refuseddeclined to renew policies for such coverages and the geographic areas to which such refusalsdeclinations applied;

(C) the events and economic factors that have triggeredcontributed to any such increased rates and refusalsdeclinations to renew policies;

(D) in cases in which private insurers curtailhave coverage,curtailed their overall wildfire exposure, the extent to which homeowners insurance coverage and commercial property coverage arewere terminated altogether and the extent to which such coverages are still offered but with coverage for damage from wildfires excluded;

(3) Regulatory responses.--With respect to actions taken by State insurance regulatory agencies in response to increased premium rates, policyholder cost-sharing, or both for coverage for damage from wildfires andor exclusion of such coverage from homeowners insurance policies-- (A) the extent ofto which States have leveraged their respective authorities to regulate rate regulation;increases;

(B) the extent ofto which States have enacted any moratoria on such rate and cost-policyholder sharingcost-sharing increases andor exclusions and on non-renewals;

(C) the extent to which States require homeowners insurance coverage to include coverage for damage from wildfires or make sales of homeowners insurance coverage contingent on the sale, underwriting, or financing of separate wildfire coverage in the State;

(E) any other actions States or localities have taken in response to increased premium rates, cost-policyholder sharing,cost-sharing, or both for coverage for damage from wildfires andor exclusion of such coverage from homeowners policies, including forestry and wildfire management policies and subsidies for premiums and cost-sharing for wildfire coverage;

(F) the effects of actions taken by States on the homeownershipavailability, coverage marketlevel, ofand suchaffordability actionsof takenhomeowners byinsurance States;coverage;

(4) ImpedimentsChallenges in underwriting wildfire risk.--With respect to impedimentsthe challenges faced by private insurers underwriting wildfire risk, what is or are-- (A) the correlated risks and the extent of such risks;

(B) the factors affecting the extent of private insurers' inabilityability to estimate magnitude of future likelihood of wildfires and of expected damages from wildfires;

(C) the extenteffects toof whichthe need forto increase more affordable housing contributesoptions, towhich peoplemay relocatingcontribute to increased homebuilding in more remote, heavilyheavily-wooded wooded areas with higher wildfire risk;

(E) the extent to which, and areas in which, risk- adjusted market premiums for wildfire risk arelimit soaffordability highor asavailability toof becoverage unaffordable;for consumers;

(F) the mannerseffects inof whichvarious theexisting Federaland Governmentpotential State and StateFederal governmentsGovernment canresponses alleviateto anyhelp ofaddress these impediments,challenges and mitigate wildfire risk, including through--actions such as-- (i) improved forest management policiespolicies; to reduce wildfire risk;

(iv) allowingoffsetting insurersa toportion chargeof risk-insurers' adjustedcharged risk-adjusted premiums forwith wildfiremeans- risk,tested combinedgovernment withaffordability subsidizedprograms premiums for lower-incomelower income homeowners;

(v) encouraging the increased use of private reinsurance and (v)other takingrisk-sharing amechanisms last-lossby positioninsurers into reinsuringbetter diversify wildfire risk;

(G)and the(vi) availabledeveloping policyprograms responsesthat ifoffset privatethe insurerscosts exitof the wildfire coveragerisk marketfor andconsumers the advantages and disadvantagesindustry; of each such response;

(H)(G) the effectsavailable ofpolicy lackresponses ofif wildfireprivate coverageinsurers orexit morethe expensive wildfire coverage rates,market cost-sharing,and orthe both--potential (i)advantages onand localdisadvantages communities,of includingeach onsuch low-response; or moderate-income property owners and small businesses;

(ii)(H) bythe raceeffects of the availability and ethnicity;affordability of wildfire coverage, policyholder cost- sharing, or both, on-- (i) local communities that are disproportionately vulnerable to wildfires, including on low- or moderate-income property owners and small businesses;

(iii)(ii) on rebuilding in communities previously damaged by wildfires;

and(iii) (iv) on the demandavailability forand wildfireaffordability coverageof byhousing propertysupply; owners;

and (iv) the demand for wildfire insurance coverage by property owners;

(b) Report.--Not later than the expiration of the 24-month12-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit to the Congress a report identifying the findings and conclusions of the study conducted pursuant to subsection (a).

<all>Union Calendar No.

489 118th CONGRESS 2d Session H.

R.

7462 [Report No.

118-589] _______________________________________________________________________ A BILL To require the Government Accountability Office to conduct a study regarding insurance coverage for damages from wildfires, and for other purposes.

_______________________________________________________________________ July 18, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed