H.R.550 - Wildfire Insurance Coverage Study Act of 2025 (119th Congress)
Summary
H.R. 550, the Wildfire Insurance Coverage Study Act of 2025, directs the Government Accountability Office (GAO) to conduct a study on insurance coverage for wildfire damages. The study will analyze wildfire risk assessment, the existing state of insurance coverage, regulatory responses by states, and challenges in underwriting wildfire risk. The GAO is required to consult with the Director of the Federal Insurance Office and state insurance regulators and submit a report to Congress within 12 months of the Act's enactment.
Expected Effects
This act will likely lead to a better understanding of the challenges and potential solutions related to wildfire insurance coverage. The study's findings could inform future policy decisions at both the state and federal levels. Ultimately, this could lead to more affordable and accessible insurance options for homeowners and businesses in wildfire-prone areas.
Potential Benefits
- Provides comprehensive data on wildfire risk and insurance coverage.
- Informs policymakers about the effectiveness of current state and federal programs.
- Identifies potential mitigation practices to reduce insurance costs and risks.
- Could lead to more sustainable and affordable insurance options for homeowners.
- Helps communities rebuild after wildfire damage by addressing insurance challenges.
Potential Disadvantages
- The study itself does not directly address the immediate problems of high insurance rates or lack of coverage.
- The 12-month study period may be too long to address urgent insurance needs.
- The effectiveness of the study depends on the accuracy and completeness of the data collected.
- There is no guarantee that the study's findings will lead to concrete policy changes.
- The study could potentially highlight the severity of the wildfire risk, leading to further increases in insurance premiums in the short term.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it aims to address a problem affecting many citizens. Specifically, the study is intended to inform policy decisions that could help ensure affordable insurance coverage for homeowners and businesses in wildfire-prone areas. Article I, Section 8 grants Congress the power to collect taxes and provide for the general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).