The bill will require the Government Accountability Office (GAO) to conduct a study on wildfire damage, the existing state of insurance coverage, possible government mitigation responses, and the challenges faced by private insurers.
Last week, the House Financial Services Committee passed H.R. 7462, the “Wildfire Insurance Coverage Study Act of 2023." The severe threat of wildfire spans across numerous states, as evidenced recently with Texas experiencing a particularly devastating outbreak.
The bill was offered by Ranking Member Maxine Waters (D-California). It will require the Government Accountability Office (GAO) to conduct a study on wildfire damage, the existing state of insurance coverage, possible government mitigation responses, and the challenges faced by private insurers when underwriting wildfire risk.
The bill passed out of committee by 47-2, proving that the wildfire problem goes beyond political affiliations, affecting both sides of the aisle.
“Given the critical juncture we face with wildfire insurance coverage, it's imperative to delve deeper into insurer challenges and strategies to safeguard families and properties in our economy against this escalating risk," Rep. Waters stated during the markup.
House Financial Services Committee Chairman Patrick McHenry (R-North Carolina) emphasized that the extensive physical and economic devastation caused by wildfires warrants a discussion that rises above political debates surrounding climate change. He highlighted that wildfires decimated 10 million acres and inflicted $16 billion in damages in 2020.
“Climate change and the shifting dynamics of our weather patterns are evident to insurance providers," Rep. McHenry said. “The focus should not dwell on the political discourse regarding climate change. Instead, it should center on the tangible losses witnessed by insurers and the escalating insurance premiums experienced by homeowners. The data unequivocally indicates a rise in costly weather phenomena, impacting real individuals and their finances."
This bill is yet to be scheduled for a floor vote in the U.S. House of Representatives.
As any wildfire-related legislation makes its way through Congress, the Big “I" will continue to provide members with updates in the weekly News & Views e-newsletter.
Corey Miller is Big “I" director of federal government affairs.
