Homeowners’ Defense Act of 2025

This bill aims to keep homeowners’ insurance available and more affordable after big disasters. It lets the U.S. Treasury back up state catastrophe insurance programs by guaranteeing their debt so claims can be paid faster. Treasury would also sell backup coverage to these state programs and run a fund, paid for by premiums, to help cover large losses. The bill creates a national group to track disaster risk and spot gaps, and it directs HUD to give grants that help families and communities strengthen homes and prepare. GAO would review state pricing and report to Congress.

To qualify, a state program must meet basic standards: be created by state law, use risk-based rates, encourage stronger building practices, and share clear information with customers. For the first five years, a state without a formal program can participate through an existing state-run insurer. Debt guarantees have limits and fees; if a qualified state program falls short, Treasury pays what’s due and then recovers the money. Backup coverage can pay most losses above a set level, and the federal share depends on annual funding. Grants prioritize communities with greater need and can support home inspections, retrofits, public education, and readiness.

• Who is affected: Homeowners in disaster‑prone areas; state catastrophe insurance programs; local governments and disaster‑response nonprofits; and renters may be studied for future coverage changes.
• What changes: Federal loan guarantees for state programs; backup insurance sold by Treasury; a national disaster‑risk group; a federal fund to pay claims; mitigation grants for preparedness and home hardening; and studies on pricing and possible coverage for rental housing.
• When: The risk‑consortium funding is authorized for fiscal years 2026–2029; the GAO report is due within six months of enactment; debt‑guarantee commitments last three years and can be extended; backup coverage contracts typically last one year; and there is a five‑year transition to let states without a program join.