INSURE Act

This bill sets up a national “backup” insurance program to help private insurers cover huge property losses from disasters. The Treasury Department would run a reinsurance program that rolls out in stages: wind and hurricanes by year 4 after the law takes effect; severe storms and wildfires by year 5; floods by year 6; and earthquakes by year 8 or earlier if a feasibility review supports it . Insurers can join if they offer broad “all‑perils” property policies and partner with customers on loss‑prevention steps, like making coverage conditional on certain safety upgrades (but not just giving a discount without investing themselves) .

The program creates a federal fund paid for by insurer premiums. The government would set when the fund starts paying (no higher than 40% of an insurer’s maximum expected loss for each peril), charge quarterly premiums that at minimum cover half of expected losses plus admin costs, and limit most annual premium hikes to 7% (not counting changes due to an insurer taking on more risk) . If the fund runs short after a major disaster, Treasury can issue government‑backed bonds, with interest that isn’t taxed by states or cities, and repay them using investment earnings from the fund . The bill also requires quarterly data reporting by participating insurers, with summaries shared with federal and state watchdogs and posted publicly without personal details, to track market risks and coverage gaps .

There are two studies: one on a possible fund to help relocate homes and businesses that become uninsurable, due in 2 years, and another on adding earthquake coverage to standard policies, due in 3 years . A pilot would test 5‑year, all‑perils property policies where premiums can rise for construction costs, changes in home value, or added optional coverage—but not just because the insurer changes its view of your property’s risk. Insurers could require basic upkeep and loss‑mitigation steps. If you sell your home, the policy could continue for the buyer; if you cancel after getting funds for improvements, you must pay back a fair share of those funds .

Key points

• Who is affected: Homeowners, renters, and businesses in disaster‑prone areas; property insurers that choose to join the program .
• What changes: A federal backstop for extreme losses; phased coverage for wind/hurricane, severe storms, wildfire, flood, and possibly earthquake; stronger focus on prevention; public reporting on coverage and claims .
• When: Program phases in over 4–8 years after enactment; relocation and earthquake feasibility reports due in 2–3 years; multi‑year policy pilot begins as perils are phased in .