Press Release
Posted:
Washington – Today, Representatives Mike Thompson (D-CA) and Doug LaMalfa (R-CA) introduced legislation providing homeowners in disaster-prone regions with broad incentives to harden their properties against wildfires and other risks. The legislation is intended to help address the ongoing insurance crisis in California and other states, as the rising frequency and intensity of natural disasters has led insurers to raise rates and, in several cases, exit certain markets entirely.
"Property insurance has quickly become one of the single biggest issues I hear about in my district. People can’t get covered: either the available options are completely unaffordable, or there are no options available at all. It’s an untenable situation," said Thompson. "By incentivizing homeowners to mitigate disaster risks on their property, we aim to bring insurers back into the market and bring rates back into more affordable territory."
"Homeowners should be able to lower their insurance costs by reducing the risks to their property, but right now, many are stuck with skyrocketing rates or no coverage at all," said Rep. LaMalfa. "This bill gives them a real chance to make improvements that not only strengthen their homes but also help bring insurers back to the market."
BACKGROUND
The Disaster Resiliency and Coverage Act of 2025 provides homeowners in disaster-prone regions with broad incentives to harden their properties against wildfires and other natural hazards to help address the ongoing insurance crisis in California and other states. By incentivizing homeowners to mitigate disaster risks on their property, the legislation will help bring insurers back into the market and lower rates.
The legislation includes the establishment of a grant program, administered through State governments, through which certain individual households in designated disaster-prone regions are eligible for up to $10,000 for specified hazard mitigation work on their homes.
The legislation also provides a 30 percent tax credit for these mitigation activities conducted by individuals, farms, and businesses. The credit complements the grant program by providing meaningful assistance to larger property owners for whom mitigation activity costs would far exceed $10,000.
In addition, the legislation establishes that payments from state-run disaster resiliency programs and payments from various federal emergency agricultural programs are not considered income for federal tax purposes. It also advises states to direct insurers to consider plan owners’ disaster mitigation efforts when setting premiums.
"NAHB commends Reps. Mike Thompson (D-Calif.) and Doug LaMalfa (R-Calif.) for introducing the Disaster Resiliency and Coverage Act. With 130 million homes built before the introduction of modern codes in 2010, this bill focuses on improving older homes that are far less resilient than modern homes. The legislation would protect homeowners, reduce the financial burden of natural disasters, and increase the resiliency of our nation’s housing stock," said Carl Harris, Chairman of the National Association of Home Builders.
"Americans all across the country are struggling to keep their homes insured in the face of rising premiums and shrinking options in the marketplace. This is not a ‘California problem.’ It is critical that we help households make the risk reduction improvements that improve their odds against extreme weather events and help them qualify for property insurance they can afford. We commend Congressman Thompson and the co-sponsors of this bill for advancing this important legislation," said Amy Bach, Executive Director, United Policyholders and member of the Federal Advisory Committee on Insurance to the U.S. Treasury.
"APCIA commends Representatives Mike Thompson (D-CA) and Doug LaMalfa (R-CA) for leading the Disaster Resiliency and Coverage Act of 2025. This bill will support homeowners in disaster-prone regions to undertake mitigation activities proven to reduce risk from natural catastrophes such as wildfires, flooding, hurricanes, and wind events. For communities at high-risk from natural disasters and severe weather-related damage, mitigation and hardening of existing structures must be prioritized and could also positively impact insurance availability and affordability. APCIA fully supports this legislation," said Kate Carey, Senior Department Vice President and Counsel, American Property Casualty Insurance Association.
"The National Association of REALTORS® applaud Representatives Thompson and LaMalfa for introducing the Disaster Resiliency and Coverage Act. This vital legislation will empower homeowners in high-risk areas to take proactive steps to safeguard their properties through targeted grants and tax incentives. By investing in mitigation efforts before disaster strikes, we not only protect lives and property but also reduce long-term recovery costs. REALTORS® strongly support these measures, which will help build stronger, more resilient communities, and we look forward to working with Congress to advance this important legislation," said Shannon McGahn, Chief Advocacy Officer, National Association of REALTORS®.
Access the full text of the bill here.