Bill > HR827

This bill establishes a comprehensive framework to help states manage and mitigate risks associated with natural catastrophes, such as hurricanes, earthquakes, and other severe events. The Homeowners' Defense Act of 2025 creates several key mechanisms: first, a National Catastrophe Risk Consortium to gather and assess catastrophe risk information, identify insurance market gaps, and track the impact of natural disasters on different communities. Second, it authorizes the Treasury Secretary to provide debt guarantees to state insurance programs, with a maximum of $3.5 billion for earthquake coverage and $17 billion for other perils, to help states maintain financial stability after major catastrophic events. Third, the bill creates a Federal Natural Catastrophe Reinsurance Fund to provide reinsurance contracts to state programs, covering 80-90% of insured losses above a certain threshold. Additionally, the Secretary of Housing and Urban Development will establish a mitigation grant program to help communities reduce potential damage from natural disasters through education, home inspections, retrofitting assistance, and disaster response preparedness. The bill aims to improve insurance affordability, encourage risk mitigation, promote the use of private market capital, and expedite recovery after catastrophic events, with a particular focus on supporting lower-income and disadvantaged communities.

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https://www.congress.gov/bill/119th-congress/house-bill/827/all-info