Wildfire Insurance Affordability Act

Key Points

• The bill creates a formula grant program giving up to $10,000 per household to fireproof homes, including fire-resistant roofs, ember-proof vents, and clearing flammable brush near houses.
• A new five-year pilot program would give states money to hand out insurance premium vouchers to lower-income households in high wildfire risk areas, but only after they finish required safety upgrades.
• Any grant or voucher money received under these programs would be tax-free, so families would not owe income tax on the assistance they get to protect their homes.
• Funding is split using a formula: a quarter based on population, half based on wildfire risk and frequency, and a quarter based on need in low-income and rural communities.
• Congress wants annual reports on whether the voucher pilot actually lowers insurance costs and keeps private insurance companies from pulling out of high-risk state markets.