Wildfire Insurance Coverage Study Act of 2025

Risk Reduction through Mitigation: The study looks into mitigation practices that could help lower the costs and risks associated with insurance policies for wildfire damage (Section 2(a)(1)(B)).

Improved Risk Assessment: By analyzing the need for a national map to measure and quantify wildfire risk, the study seeks to better understand and forecast wildfire events (Section 2(a)(1)(C) and (D)).

Evaluation of Government Assistance: The study assesses the effectiveness of existing government programs and looks into potential government affordability programs designed to offset risk-adjusted premiums for lower-income homeowners (Section 2(a)(1)(C) and (a)(4)(F)(iv)).

Assessing Regulatory Protections: The bill examines how State actions, such as rate regulations, moratoria on increases, or the establishment of residual market insurance entities, affect the availability and affordability of coverage (Section 2(a)(3)).

Financial Pressure on Consumers: The bill notes that increased premium rates, higher policyholder cost-sharing, or the exclusion of wildfire coverage can impact the affordability of insurance (Section 2(a)(2)(A) and (a)(4)(E)).

Risk to Insurance Availability: The study examines how private insurers might decline to renew policies or terminate coverage altogether, which can leave property owners without protection (Section 2(a)(2)(B) and (D)).

Vulnerability of Specific Communities: The research investigates how the availability and affordability of coverage affects local communities that are disproportionately vulnerable to wildfires, specifically impacting low- or moderate-income property owners and small businesses (Section 2(a)(4)(H)(i)).

Housing Supply Concerns: The study looks at how wildfire risks and insurance availability might affect the overall availability and affordability of the housing supply (Section 2(a)(4)(H)(iii)).