The Homeowners’ Defense Act of 2025 would create federal support for state insurance programs that cover losses from natural disasters. The Treasury Department would offer eligible state programs debt guarantees and reinsurance. The Department of Housing and Urban Development would provide grants for disaster preparedness and loss prevention, including home inspections and retrofits. The bill also calls for studies of insurance rates and coverage for residential rental properties. It was introduced and referred to the House Committee on Financial Services; it has not been enacted.
Homeowners could receive retrofit help through grants to eligible state or local entities and nonprofit disaster-response groups. Eligible state insurance programs could receive federal reinsurance or debt guarantees after major losses. The bill does not guarantee that insurance will be available or become less expensive. It requires eligible programs to reflect reinsurance savings in consumer premiums when savings occur.
The bill authorizes appropriations for the risk consortium and debt-guarantee program, and allows reinsurance support only to the extent provided in annual appropriations. It sets maximum guaranteed debt of $3.5 billion for earthquake programs and $17 billion for programs covering other disasters. Reinsurance contracts would be priced to cover expected claims and related costs. Grant funding would include at least 35 percent of the reinsurance fund’s net investment income when funds are provided in advance through appropriations. The bill does not state a total cost.
The bill lists goals of supporting state insurance programs, encouraging disaster prevention, using private market capital, and helping claims get paid more quickly after disasters.
No publicly available information.