The House Financial Services Committee overwhelmingly approved a bill on Thursday that would kickstart a federal study on wildfire insurance coverage. The bill, introduced by Rep. Maxine Waters, D-Calif, aims to assess the impact of wildfires on homeowner and commercial property policies, examine premium increases, coverage cutbacks, and challenges related to underwriting wildfire risk.
The legislation, known as the Wildfire Insurance Coverage Study Act, comes in response to the increasing frequency of wildfires in various states, including the recent devastating outbreak in Texas. The bill highlights the need to better understand insurer challenges and protect families and homes against this growing risk.
While the committee unanimously supported the wildfire study bill, another piece of legislation that would restrict the Federal Insurance Office's data collection from insurers was delayed for further consideration. The bill aims to ensure coordination with state insurance regulators and maintain data confidentiality. Members of the insurance industry, including trade associations like the American Property and Casualty Insurance Association and the Independent Insurance Agents and Brokers of America, have voiced support for the bill restricting FIO data collection.
They emphasize the importance of collaboration between the FIO and state regulators to acquire necessary data for fulfilling its mission. Despite the delay in the vote on the data protection bill, the committee is expected to revisit the issue in the coming weeks. Lawmakers are working towards a resolution to address the challenges posed by wildfires and ensure adequate insurance coverage for homeowners and businesses affected by these natural disasters.
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