Wildfire Insurance Coverage Study Act of 2025
Wildfire Insurance Coverage Study Act of 2025 would require the Government Accountability Office (GAO) to conduct a comprehensive study on how insurance coverage for wildfire damages is working in the United States. The GAO would work with the Director of the Federal Insurance Office and state insurance regulators to assess wildfire risk, current coverage availability, and regulatory responses, as well as the underwriting challenges insurers face. The study aims to identify risk trends (including wildfire declarations tied to the Fire Management Assistance grant program under the Stafford Act), what mitigation and measurement programs exist, and whether a national wildfire risk map is needed. It would also examine how private insurers have adjusted rates, non-renewals, exclusions, or coverage terms over the past decade, and how state actions have affected affordability and availability of coverage. A final report would be due to Congress within 12 months of enactment. In short, the bill seeks to illuminate how wildfire risk is priced and insured today, what gaps or barriers exist in coverage, and what policy options could improve resilience and access to affordable wildfire insurance. The findings could inform federal and state policymaking on whether additional federal involvement, market reforms, or risk-management measures are warranted.
Key Points
- 1GAO study mandate with interagency consultation. The Comptroller General must conduct a broad analysis in coordination with the Director of the Federal Insurance Office and state regulators, including examining trends in wildfire risk and the use of the Fire Management Assistance grant program.
- 2Assessment of current coverage and market changes over the last 10 years. The study will document how homeowners and commercial property wildfire coverage has changed in price, cost-sharing, and availability; including rate increases, non-renewals, policy exclusions, and any shifts in coverage conditions or coverage terminations.
- 3Review of regulatory responses at the state level. The bill requires evaluating how states have used their authority to regulate rates and non-renewals, any moratoria or mandates regarding wildfire coverage, residual market or reinsurance mechanisms, and related forestry or subsidy measures, with attention to effects on affordability and availability.
- 4Examination of underwriting challenges and potential policy responses. The study will analyze the risk factors insurers face, how risk is modeled and forecasted, effects on housing and vulnerable communities, and possible policy options such as forest management, data improvements, risk-sharing mechanisms, or affordability programs.
- 5Timely reporting to Congress. Not later than 12 months after enactment, the GAO must provide a report outlining the study’s findings and conclusions to Congress.