The INSURE Act Explained: What It Means for Homeowners

The Incorporating National Support for Unprecedented Risks and Emergencies (INSURE) Act aims to address rising unaffordability in the American insurance marketplace.

Since being introduced last year, however, the INSURE Act has had few updates. Most insurers have publicly opposed the bill, while supporters argue it would be a boon for policyholders.

Today, we’re breaking down the INSURE Act and what it means for ordinary policyholders like you.

What is the INSURE Act?

The INSURE Act was proposed by Rep. Adam Schiff on January 10, 2024.

The goal of the INSURE Act (formally known as HR 6944) is to create a federal catastrophic property loss reinsurance program with the goal of lowering insurance premiums and stabilizing the insurance marketplace nationwide.

As of June 2025, the INSURE Act remains under consideration in the US House of Representatives.

What Does the INSURE Act Do?

The INSURE Act proposes the creation of a federal catastrophic property loss reinsurance program within the United States Department of Treasury.

Via this mechanism, the INSURE Act aims to:

• Stabilize the home insurance market
• Ensure vulnerable communities are not excluded from coverage
• Protect policyholders from unrestrained cost increases
• Create a transparent, fairly-priced reinsurance market to cover the worst catastrophes

Reinsurance is just what it sounds like: it’s insurance for insurance companies. It protects insurers from risk – say, the risk of a large, severe disaster over the insurance company’s customer base. With reinsurance, the insurer can transfer risk to a third party – in this case, the United States government.

How Does the INSURE Act Work?

To accomplish the goals above, the INSURE Act contains key provisions like:

Creates a Federal Catastrophic Reinsurance Program: One of the primary features of the INSURE Act is the creation of a reinsurance program within the US Department of the Treasury. That program would offer “insurance for insurers,” or reinsurance. If a qualifying insurance company offers all-perils coverage, then it could qualify for this reinsurance program, giving it added protection against natural disasters (including hurricanes, wildfires, and floods).

Adopts a Phase-In Approach: The INSURE Act proposes gradual changes over multiple years. It would start with a reduction in FEMA’s National Flood Insurance Program (NFIP), for example. Today, the NFIP issues flood insurance across the United States. Under the INSURE Act, the NFIP would stop issuing new policies and shift flood risk to private insurers.

Creates Risk Mitigation Incentives for Homeowners: A stronger home is better able to withstand hurricanes. A raised home can avoid flood damage. Under the INSURE Act, insurers would be required to incentivize these practices. If a policyholder takes action to reduce losses – say, by raising or strengthening a home – the insurer would be required to compensate the policyholder.

Launches a Federal Catastrophe Reinsurance Fund: The INSURE Act also proposes the creation of a federal catastrophe reinsurance fund. The fund would manage premiums collected by qualifying insurers, then pay out in the event of a major loss – like a flood, hurricane, or wildfire.

Ensure Financial Stability of the Reinsurance Marketplace Via Notes & Bonds: To ensure the stability of the fund above, the INSURE Act proposes the issuance of notes and bonds.

Where is the INSURE Act in 2025?

The INSURE Act made headlines all the way back in January 2024.

As of June 2025, however, there have been few updates on the INSURE Act.

The last update to the INSURE Act took place on January 10, 2024, when it was referred to the House Committee on Financial Services. The act has not yet advanced beyond this stage.

Is the INSURE Act Good or Bad?

Since the INSURE Act was introduced, supporters and critics have been outspoken online:

• Consumer advocacy groups tend to support the INSURE Act. The Consumer Federation of America, for example, praised the INSURE Act in January 2024 for potentially helping to stabilize the homeowners insurance marketplace.
• Consumer advocacy group United Policyholders also seems to endorse the INSURE Act, describing it as a “well-intended and ambitious…solution” to America’s insurance “crisis.”
• Others – particularly insurers – have opposed the bill. The American Property and Casualty Insurance Association (APCIA) claimed the act would “put families at risk of losing access to the coverage they need,” for example, adding that such a program was “not needed” and would only increase insurance premiums further.
• Insurance companies also argue the INSURE Act is an overreach of the federal government into an industry that has traditionally been regulated by the states. Worse, it doesn’t address the root cause of rising insurance rates, simply trying to put a stopgap on the issue instead.

What Does the INSURE Act Mean for Homeowners?

What does all of this mean for you, an ordinary homeowner?

If the INSURE Act passes, it could lead to stabilization of premiums. Homeowners could also be compensated for mitigating risk around their home.

Some of the changes that could occur with the passage of the INSURE Act include:

Improved Access to Quality Insurance Coverage: According to the Consumer Federation of America, the INSURE Act “will improve homeowners access to quality insurance coverage.” With insurers increasingly exiting high-risk marketplaces, consumers have fewer choices in states like Florida and California. The INSURE Act could reverse this trend.

Compensation for Risk Mitigation Practices at Home: Under the INSURE Act, participating homeowners would be required to compensate homeowners for engaging in risk mitigation strategies – like raising homes or building with stronger materials.

Safer Homes & Communities: Because homeowners would be incentivized to strengthen homes and mitigate risk, the INSURE Act could lead to safer homes and communities. Instead of having a natural disaster wreak havoc over an entire community, a natural disaster could have a less severe impact.

Stabilization of Premiums: The INSURE Act creates a reinsurance marketplace under the federal government. That marketplace would collect premiums from insurers, then distribute them after a severe loss – like a flood, hurricane, or wildfire. Supporters of the INSURE Act argue it would lead to the stabilization of premiums.

What Comes Next?

The INSURE Act continues to sit with the House Committee on Financial Services, which is where it’s remained for all of 2024 through mid-2025.

If the INSURE Act passes, however, it could change the way American homeowners buy, access, and use homeowners insurance.

Stephanie Corona

Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.