The INSURE Act requires the Treasury Secretary to establish a federal catastrophic property loss reinsurance program to help private insurance companies cover major disasters like hurricanes, wildfires, floods, and other extreme events. The program will be phased in over several years, starting with wind and hurricane coverage by year four after enactment, adding severe storms and wildfires by year five, flood coverage by year six, and potentially earthquake coverage by year eight. Insurance companies that participate must offer comprehensive all-perils property policies for residential and commercial properties and partner with policyholders on loss-prevention activities. Participating insurers will pay quarterly premiums to a federal fund (calculated to cover expected losses plus administrative costs), and the federal government will reimburse insurers for catastrophic losses exceeding a set threshold. The bill also establishes an advisory committee with representatives from consumer groups, insurers, reinsurers, state regulators, and federal agencies to guide program implementation, and requires data collection to monitor financial risks and market stability. Additionally, the legislation directs Treasury to study the feasibility of creating a relocation fund for uninsurable properties and covering earthquake damage.
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