I 
119TH CONGRESS 
1ST SESSION 
H. R. 827 
To ensure the availability and affordability of homeowners’ insurance coverage 
for catastrophic events. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2025 
Ms. WILSON of Florida introduced the following bill; which was referred to 
the Committee on Financial Services 
A BILL 
To ensure the availability and affordability of homeowners’ 
insurance coverage for catastrophic events. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Homeowners’ Defense Act of 2025’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings and purposes. 
TITLE I—NATIONAL CATASTROPHE RISK CONSORTIUM 
Sec. 101. Establishment; chairperson; membership; bylaws. 
Sec. 102. Functions. 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
Sec. 103. Authorization of appropriations. 
TITLE II—CATASTROPHE OBLIGATION GUARANTEES 
Sec. 201. Purposes. 
Sec. 202. Establishment of debt guarantee program. 
Sec. 203. Effect of guarantee. 
Sec. 204. Full faith and credit. 
Sec. 205. Fees for guarantees; amount; collection. 
Sec. 206. Payment of losses. 
Sec. 207. Regulations. 
TITLE III—REINSURANCE COVERAGE FOR ELIGIBLE STATE 
PROGRAMS 
Sec. 301. Program authority. 
Sec. 302. Contract principles. 
Sec. 303. Terms of reinsurance contracts. 
Sec. 304. Maximum Federal liability. 
Sec. 305. Federal Natural Catastrophe Reinsurance Fund. 
Sec. 306. Consideration of rebuilding. 
Sec. 307. Regulations. 
TITLE IV—MITIGATION GRANT PROGRAM 
Sec. 401. Mitigation grant program. 
TITLE V—GENERAL PROVISIONS 
Sec. 501. Eligible State programs. 
Sec. 502. Study and conditional coverage of commercial residential lines of in-
surance. 
Sec. 503. Study of risk-based pricing and State program rates. 
Sec. 504. Definitions. 
Sec. 505. Regulations. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the United States has a history of cata-
strophic natural disasters, including hurricanes, tor-
nadoes, flood, fire, earthquakes, and volcanic erup-
tions; 
(2) although catastrophic natural disasters 
occur infrequently, their costs are likely to escalate 
in the coming years, in part because of the inten-
sifying impacts of climate change, coastal develop-
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
ment patterns, and increasing property values along 
the hurricane-prone or earthquake-vulnerable coast-
lines of the United States; 
(3) such disasters present physical risk to as-
sets, publicly traded securities, private investments, 
and companies; 
(4) as the risk of catastrophe losses grows, so 
do the risks that any premiums collected by private 
insurers for extending coverage will be insufficient to 
cover future catastrophes, and private insurers, to 
protect their shareholders and policyholders (in the 
case of mutually owned companies), have thus sig-
nificantly raised premiums and curtailed insurance 
coverage in States exposed to major catastrophes; 
(5) such effects on the insurance industry have 
been harmful to economic activity in States exposed 
to major catastrophes and have placed significant 
burdens on residents of such States and the Federal 
Government; and 
(6) under the current disaster risk management 
system, the Federal Government and, hence, tax-
payers pay for rebuilding through government 
grants and low-interest loans. 
(b) PURPOSES.—The purposes of this Act are to es-
tablish a program to provide Federal support for State- 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
sponsored insurance programs to help homeowners pre-
pare for and recover from the damages caused by natural 
catastrophes, to encourage mitigation and prevention for 
such catastrophes, to promote the use of private market 
capital as a means to insure against such catastrophes, 
to expedite the payment of claims and better assist in the 
financial recovery from such catastrophes. 
TITLE 
I—NATIONAL 
CATAS-
TROPHE RISK CONSORTIUM 
SEC. 101. ESTABLISHMENT; CHAIRPERSON; MEMBERSHIP; 
BYLAWS. 
(a) ESTABLISHMENT.—There is established an entity 
to be known as the ‘‘National Catastrophe Risk Consor-
tium’’ (in this title referred to as the ‘‘Consortium’’). 
(b) CHAIRPERSON.—The Secretary of the Treasury, 
or the designee of the Secretary, shall serve as the chair-
person of the Consortium. 
(c) MEMBERSHIP.—Any State shall be eligible to par-
ticipate in the Consortium. 
(d) CONSIDERATIONS.—In selecting members of the 
Consortium, the States shall— 
(1) select members who have a background and 
expertise relevant to the functions of the Consor-
tium; and 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
(2) ensure the participation of one individual or 
representative of an organization that represents 
consumers, minorities, and low- and moderate-in-
come housing persons by reflecting the communities 
that are being affected by catastrophic natural disas-
ters. 
(e) BYLAWS.—The Consortium may prescribe, 
amend, and repeal such bylaws as necessary to carry out 
the functions of the Consortium. 
SEC. 102. FUNCTIONS. 
The Consortium shall— 
(1) work with States to gather and maintain an 
inventory of catastrophe risk obligations held by pro-
viders of natural catastrophe insurance; 
(2) assess issues or gaps in the insurance sector 
of the United States financial system and any re-
lated effects on insurance affordability for policy-
holders; 
(3) advance consistent, clear, intelligible, com-
parable, and accurate disclosure of catastrophic risk; 
(4) submit annual reports to the Congress de-
scribing the activities of the Consortium for the pre-
ceding year, and the first such annual report shall 
include an assessment of the costs to States and the 
regions associated with catastrophe risk; 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
(5) assess the potential for major disruptions of 
private insurance coverage in United States markets 
particularly vulnerable to catastrophes; 
(6) make such other recommendations on how 
identified financial risk can be mitigated, including 
through new or revised regulatory standards, as ap-
propriate; and 
(7) account for and identify disparate impacts 
of catastrophic risks on disadvantaged communities 
and communities of color. 
SEC. 103. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this title such sums as may be necessary for each of fiscal 
years 2026 through 2029. 
TITLE II—CATASTROPHE 
OBLIGATION GUARANTEES 
SEC. 201. PURPOSES. 
The purposes of this title are to establish a pro-
gram— 
(1) to promote the availability of private capital 
to provide liquidity and capacity to State catas-
trophe insurance programs; and 
(2) to expedite the payment of claims under 
State catastrophe insurance programs and better as-
sist the financial recovery from significant natural 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
catastrophes by authorizing the Secretary of the 
Treasury to guarantee debt for such purposes. 
SEC. 202. ESTABLISHMENT OF DEBT GUARANTEE PRO-
GRAM. 
(a) AUTHORITY OF SECRETARY.—The Secretary of 
the Treasury is authorized and shall have the powers and 
authorities necessary to guarantee, and to enter into com-
mitments to guarantee, holders of debt against loss of 
principal or interest, or both, on any such debt issued by 
eligible State programs for purposes of this title, provided 
that the total principal amount of debt obligations guaran-
teed by the Secretary— 
(1) for eligible State programs that cover earth-
quake peril shall not exceed $3,500,000,000; and 
(2) for eligible State programs that cover all 
other perils shall not exceed $17,000,000,000. 
(b) CONDITIONS FOR GUARANTEE ELIGIBILITY.—A 
debt guarantee under this section may be made only if 
the Secretary has issued a commitment to guarantee to 
an eligible State program. The commitment to guarantee 
shall be for a period of 3 years and may be extended by 
the Secretary for a period of 1 year on each annual anni-
versary of the issuance of the commitment to guarantee. 
The commitment to guarantee and each extension of such 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
commitment may be issued by the Secretary only if the 
following requirements are satisfied: 
(1) The eligible State program submits to the 
Secretary a report setting forth, in such form and 
including such information as the Secretary shall re-
quire, how the eligible State program plans to repay 
the debt. 
(2) Based upon the eligible State program’s re-
port submitted pursuant to paragraph (1), the Sec-
retary determines there is reasonable assurance that 
the eligible State program can meet its repayment 
obligation under the debt. 
(3) The eligible State program enters into an 
agreement with the Secretary, as the Secretary shall 
require, that the eligible State program will not use 
Federal funds of any kind or from any Federal 
source (including any disaster or other financial as-
sistance, loan proceeds, and any other assistance or 
subsidy) to repay the debt. 
(4) The commitment to guarantee shall specify 
the fees for debt guarantee coverage. 
(5) The maximum term of the debt that shall 
be specified in a commitment issued under this sec-
tion may not exceed 30 years. 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
(6) The Secretary determines that the eligible 
State program does not cover losses arising from 
floods to properties that are required to be covered 
by flood insurance, covered by flood insurance, or lo-
cated in areas having special flood hazards (as such 
term is defined for purposes of the National Flood 
Insurance Act of 1968 and the Flood Disaster Pro-
tection Act of 1973). 
(c) MANDATORY ASSISTANCE FOR ELIGIBLE STATE 
PROGRAMS.—The Secretary shall upon the request of an 
eligible State program and pursuant to a commitment to 
guarantee issued under subsection (b), provide a guar-
antee under subsection (d) for such eligible State program 
in the amount requested by such eligible State program, 
subject to the limitation under subsection (d)(2). 
(d) CATASTROPHIC
DEBT
GUARANTEE.—A debt 
guarantee under this subsection for an eligible State pro-
gram shall be subject to the following requirements: 
(1) PRECONDITIONS.—The eligible State pro-
gram shows to the satisfaction of the Secretary that 
insured losses in the State to the eligible State pro-
gram arising from the event or events covered by the 
commitment to guarantee are likely to exceed the eli-
gible State program’s available cash resources, as of 
immediately before the date of the event. 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
(2) AMOUNT.—The aggregate principal amount 
of the debt guaranteed following an event or events 
referred to in paragraph (1) may not exceed the 
amount by which the insured losses expected to be 
sustained by the State program as a result of such 
event or events exceed 80 percent of the qualifying 
assets of the eligible State program as stated in the 
most recent quarterly financial statement filed with 
the domiciliary regulator of the program prior to the 
event or events, except that, for eligible State pro-
grams that are not required to file such quarterly fi-
nancial statements, the aggregate principal amount 
of the debt guaranteed may not exceed the amount 
by which insured losses sustained by the State pro-
gram as a result of such event or events exceed 80 
percent of the unrestricted net assets as stated in 
the annual financial statement for the program’s fis-
cal year ending immediately prior to the event or 
events. 
(3) USE OF FUNDS.—Amounts of debt guaran-
teed under this section shall be used only to pay the 
costs of issuing debt and to pay the insured losses 
and loss adjustment expenses incurred by an eligible 
State program. Such amounts shall not be used for 
any other purpose. 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 304. MAXIMUM FEDERAL LIABILITY. 
(a) IN GENERAL.—Subject to subsection (b) and not-
withstanding any other provision of law, the aggregate po-
tential liability for payment of claims under all contracts 
for reinsurance coverage under this title sold in any single 
year shall be determined by the Secretary based on review 
of the market for reinsurance coverage under this title. 
(b) LIMITATION.—The authority of the Secretary to 
enter into contracts for reinsurance coverage under this 
title shall be effective for any fiscal year only to such ex-
tent or in such amounts as are or have been provided in 
appropriation Acts for such fiscal year for the aggregate 
potential liability for payment of claims under all contracts 
for reinsurance coverage under this title. 
SEC. 305. FEDERAL NATURAL CATASTROPHE REINSUR-
ANCE FUND. 
(a) ESTABLISHMENT.—There is established within 
the Treasury of the United States a fund to be known 
as the Federal Natural Catastrophe Reinsurance Fund (in 
this section referred to as the ‘‘Fund’’). 
(b) CREDITS.—The Fund shall be credited with— 
(1) amounts received annually from the sale of 
contracts for reinsurance coverage under this title; 
(2) any amounts appropriated for the aggregate 
potential liability for payment of claims under all 
VerDate Sep 11 2014 
00:21 Feb 25, 2025
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H827.IH
H827
ssavage on LAPJG3WLY3PROD with BILLS