INSURE Act

This bill would set up a federal “backup” for property insurers when very large disasters hit, so companies can keep offering home and business coverage and markets stay more stable. Insurers that join must sell one policy that combines disaster risks as they are phased in, and they must partner with customers on real steps to reduce damage. They pay into a national fund each quarter; when losses are extremely high, the fund helps cover costs. If the fund runs short, the Treasury can issue U.S.-backed bonds to meet obligations. Insurers must also report de-identified data on exposures and claims each quarter to improve oversight and share insights with federal and state agencies.

The program rolls out in stages: wind and hurricanes first; then severe storms and wildfires; then floods; and finally earthquakes by about eight years, tied to a required feasibility review. The bill also directs reports on a possible fund to help relocate homes and businesses that become uninsurable, and it tests 5-year property insurance policies to give customers more predictable pricing and the option to transfer a policy when a home is sold.

• Who is affected
  • Property insurers that choose to join the program, and the people and businesses they cover for disaster damage.
• What changes
  • Federal backup coverage for extreme losses, funded by insurer premiums; bonds can be issued if needed.
  • Insurers must offer “all‑perils” policies and work with customers on loss‑prevention steps; simple discounts or general info alone don’t count.
  • Quarterly reporting of de-identified policy and claims data to federal and state agencies, with public access.
  • A pilot for 5‑year policies with limited reasons for price changes, plus rules for transfers and early cancellation.
• When
  • Program starts about 4 years after the law and phases in disasters: wind/hurricane (year 4), severe storms/wildfire (year 5), flood (year 6), earthquakes by about year 8.
  • Reports due within 2 years (relocation fund) and 3 years (earthquake coverage feasibility).