New Merkley Bill Tackles Dual Crises of Wildfire Risk and Insurance Affordability

Washington, D.C. - Oregon's U.S. Senator Jeff Merkley today unveiled the Wildfire Insurance Affordability Act, new legislation that would help homeowners reduce wildfire risk, give insurers confidence in lowering home insurance rates in communities at risk of fires, and keep insurers in the market.

"The threat of wildfires is sending the dream of homeownership up in flames for millions of families in Oregon and across the nation," said Merkley. "Folks need insurance to buy a home in America, but fires fueled by climate chaos are driving up home insurance rates to unaffordable highs. My new legislation takes on the factors sending costs soaring, helps keep communities safe from fires, and gives insurers peace of mind to lower rates."

The Wildfire Insurance Affordability Act's two new programs would work hand-in-hand to reduce wildfire risk around homes in fire-prone areas and to help make home insurance more affordable for low-income homeowners:

• Wildfire Risk Reduction Grant Program: This program would provide grants to states to set up or support home hardening and defensible space programs for individual households.
• Homeowner's Wildfire Insurance Premium Assistance Voucher Pilot Program: This pilot program would provide funds to state insurance commissioners to give vouchers that reduce the cost of home insurance for low-income homeowners who have completed home hardening and defensible space work at their residence.

Homes that have taken steps to harden and improve defensible space can see a 52 percent reduction in structural losses. This would also aid those in need, as home insurance is getting less affordable in areas that are prone to wildfire and other disasters. Households that are impacted by extreme weather events like wildfires are even seeing their premiums increase 8.7 percent faster than the rate of inflation and are experiencing higher instances of nonrenewal.

Merkley has been a long-time leader in the fight to prepare for and mitigate the worst impacts of wildfires. He leads a series of bipartisan bills to support mills processing hazardous fuels coming off public lands, train the new generation of wildland firefighters, aid toxic debris cleanup following wildfires, and promote collaborative forest management.

The Wildfire Insurance Affordability Act is endorsed by the American Property Casualty Insurance Association (APCIA), Insurance Institute for Business & Home Safety (IBHS), After the Fire USA, Megafire Action, Oregon Department of Forestry, Oregon State Fire Marshal, and Oregon Department of Consumer and Business Services.

"APCIA supports the Wildfire Insurance Affordability Act and appreciates Senator Merkley's leadership in advancing solutions that would help homeowners reduce wildfire risk and support access to insurance coverage. Investments in mitigation and resilience for home hardening and defensible space work can help prevent or reduce disaster losses, while targeted assistance for low-income households can help families maintain the financial protection they need. Reducing risk and improving affordability must go hand in hand to strengthen community resilience and protect homeowners," said Sam Whitfield, APCIA's senior vice president of federal government relations and political engagement.

"As wildfire risk drives insurance costs higher, rising premiums are putting coverage out of reach for too many families," said Matt Weiner, founder and CEO of Megafire Action. "Sen. Merkley's Wildfire Insurance Affordability Act helps homeowners access the resources needed to fireproof their properties and makes sure low-income families aren't shut out of the insurance coverage they need when the worst happens."

"Wildfire survivors know that home hardening and insurance affordability are not separate problems. Families cannot protect their homes if mitigation is out of reach, and they cannot remain in their communities if insurance is unavailable or unaffordable. Senator Merkley's Wildfire Insurance Affordability Act addresses both realities and deserves strong bipartisan support," said Jennifer Gray Thompson, MPA, Founder & CEO, After the Fire USA.

"This Act, through the grant program, is a positive step to providing consumers with the necessary tools so they can move forward with home hardening and other mitigation measures to ultimately reduce their insurance costs. Many consumers want to take mitigation steps to improve their insurability but are financially unable to do so, and this bill helps overcome these challenges. The voucher program rewards consumers for their good work to make their homes more insurable, guaranteeing them a new form of premium assistance relief," said TK Keen, Oregon Insurance Commissioner.

"The Oregon State Fire Marshal appreciates Senator Merkley's continued attention to wildfire safety, community resilience, and the increasing challenges facing homeowners in wildfire-prone areas in Oregon," said Mariana Ruiz-Temple, Oregon State Fire Marshal. "OSFM supports efforts that help reduce wildfire risk to homes and communities through proven community risk reduction strategies, including defensible space, home hardening, ignition-resistant construction, and other mitigation investments. Programs that help homeowners, local fire agencies, rural fire protection districts, Tribal governments, and community partners implement these measures can improve life safety, reduce property loss, and strengthen Oregon's overall wildfire resilience. If enacted, the Wildfire Insurance Affordability Act would enhance and support those efforts at the state level. As wildfire risk continues to affect communities across Oregon, OSFM supports policy approaches that increase fire safety, expand access to mitigation resources, reduce barriers for households with limited financial capacity, and help communities take practical steps before disasters occur. OSFM would welcome continued discussion on implementation, coordination with existing Oregon programs, and opportunities to ensure any future funding can be administered effectively and equitably across rural, Tribal, and wildfire-prone communities."

Full text of the Wildfire Insurance Affordability Act can be found by clicking here.

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