ICYMI: Schiff Introduces Bill to Ensure Homeowners, Vulnerable Communities Not Excluded From Catastrophic Coverage
Washington, D.C.— This week, Representative Adam Schiff (D-Calif.) introduced the Incorporating National Support for Unprecedented Risks and Emergencies (INSURE) Act to stabilize the home insurance market while ensuring vulnerable communities are not excluded from coverage.
Specifically, Schiff’s INSURE Act would protect homeowners and communities from increasing coverage costs by:
- Establishing a Federal Catastrophe Reinsurance Program within the Department of the Treasury to cap insurers’ liability in the case of a catastrophic event above a threshold developed by the Secretary and an advisory committee of experts.
- Requiring participating insurers to cover all natural disasters, including wildfires, severe storms, wind, hurricanes, floods, and earthquakes.
- Directing significant investments from insurers in loss prevention and risk mitigation partnerships with policyholders.
- Improving market monitoring through the Office of Financial Research and the Federal Insurance Office in collaboration with state insurance regulators.
The INSURE Act is supported by the Center for Economic Justice, Consumer Action, Consumers Council of Missouri, Consumer Federation of America, Consumer Federation of California, Consumer Watchdog, Delaware Community Reinvestment Action Council, Georgia Watch, Oregon Consumer Justice, Real Reform Louisiana, Strategic Action for a Just Economy, Texas Appleseed, Texas Watch, and United Policyholders.
See coverage of Schiff’s INSURE Act below:
San Francisco Chronicle: California Rep. Schiff introduces bill to help stabilize home insurance market
As the Bay Area deals with shrinking home insurance options and rising costs, California Rep. Adam Schiff introduced federal legislation Wednesday in an effort to stabilize the insurance market.
The act proposed by Schiff, D-Burbank, titled Incorporating National Support for Unprecedented Risks and Emergencies (INSURE), aims to help through the creation of federal reinsurance.
When major home insurers State Farm and Allstate announced last year they would stop writing new policies in California, both cited the cost of reinsurance — which acts as insurance for insurance companies, allowing them to shift some liability — as a reason for their exit. [...]
With lower reinsurance rates, the goal is to in turn provide lower rates for consumers. The INSURE Act would also require insurers participating in the federal reinsurance program to offer coverage for all natural disasters and invest in loss prevention and risk mitigation strategies with customers to help them with disaster preparation.[...]
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