Establishes the strengthen homes program

• Democratic2
• Republican1

◆ The sponsor's argument

Why Jamaal Bailey says this is needed

Massive regional devastation is occurring with increasing frequency within certain areas of the United States and in many regions throughout the world. While communities grapple with the impact, a consensus is beginning to emerge that we must change our approach to insurance poli- cy. Traditionally, insurance prices in risk based on a myriad of factors, including the loss history in the area where the policy is being written. As the impacts of climate change become more acute, however, risks are becoming harder to assess and pricing in the actual anticipated risk after it is better established is becoming astronom- ically expensive. In addition to pricing increased risk, insurers now must incentivize mitigation and resilience. First adopted in Alabama, the Strengthened Homes Program incentivizes the construction of disaster resistant retrofits that mitigate loss. The program encourages qualifying homeowners to contract with qualified contractors to install retrofits made to disaster resistant specifica- tions. A participating qualified homeowner will receive a grant. After the retrofit is installed, the homeowner will then qualify for insurance discounts. This legislation was adopted as a model bill at the National Council of Insurance Legislators (NCOIL) and is a beneficial policy for any state with disaster risk.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.