Bill Overview
Title: Wildfire Insurance Coverage Study Act of 2022
Description: This bill requires studies and reports regarding wildfire risk and damage. Specifically, the Federal Emergency Management Agency must report on trends in wildfire declarations, mitigation practices, state and federal programs regarding wildfire risk, and the need for a national map of wildfire risks. The Government Accountability Office must report on (1) the availability and cost of wildfire insurance coverage for homes and commercial property, (2) state regulatory responses to increasing costs of coverage, and (3) impediments to private wildfire insurance coverage.
Sponsors: Rep. Waters, Maxine [D-CA-43]
Target Audience
Population: People in areas at risk of wildfires
Estimated Size: 3500000
- Wildfires are common in regions like California, Australia, and Southern Europe, affecting millions of people globally.
- Individuals living in areas prone to wildfires, particularly in the Wildland-Urban Interface (WUI), are most likely to be impacted by the insurance aspects.
- Globally, approximately 1 billion people live in forested areas or areas prone to wildfires, but not all are insured.
- This legislation specifically targets improving wildfire risk understanding, which indirectly impacts residents of at-risk areas through better insurance policies and mitigation strategies.
Reasoning
- The policy targets residents in wildfire-prone areas, estimated around 3.5 million in the US, particularly in fire-prone states like California, Oregon, and Washington.
- The $10M budget for year 1 and $43.5M over 10 years suggests a need for high-impact cost-effective studies, influencing homeowners, renters, and businesses.
- Insurance availability and cost adjustments may relieve financial stress on affected residents, improving long-term wellbeing.
- Not everyone will be aware or directly benefit immediately, as changes in insurance and mitigation practices take time to implement and trickle down.
Simulated Interviews
Secondary School Teacher (San Diego, California)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I worry about the increasing wildfire risk each year.
- Insurance is already costly, and I'm concerned it might become unaffordable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Retired Firefighter (Portland, Oregon)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I've seen how fires devastate properties in this area.
- Insurance developments could save our community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 9 | 3 |
Insurance Broker (Reno, Nevada)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Better data and maps will help set more accurate premiums.
- Clients often struggle with high costs due to fire risk.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Wildlife Ecologist (Santa Fe, New Mexico)
Age: 29 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Insurance isn't my main concern, but it's crucial for community planning.
- Mitigating wildfires protects biodiversity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Small Business Owner (Landscaping) (Spokane, Washington)
Age: 52 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- Better insurance could prevent financial ruin during fires.
- Current policies are expensive and restrictive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 2 |
Retired Homeowner (Flagstaff, Arizona)
Age: 65 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I'm on a tight budget; any insurance hike is troublesome.
- Improvements in insurance can ease financial pressure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Software Developer (Los Angeles, California)
Age: 34 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- Wildfire insurance isn't something I directly deal with.
- The policy sounds beneficial for risk-prone area strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Real Estate Agent (Colorado Springs, Colorado)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- The new data could stabilize the housing market in fire zones.
- Clients are deterred by unpredictable insurance costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Agricultural Scientist (Boise, Idaho)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Fire insurance influences agricultural investment decisions.
- Better policies can help protect farm assets.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Environmental Attorney (Las Vegas, Nevada)
Age: 37 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Enhanced insurance could support legal measures and client interests.
- Policy could guide nationwide fire risk strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $10000000 (Low: $7500000, High: $12000000)
Year 2: $8000000 (Low: $6000000, High: $10000000)
Year 3: $6000000 (Low: $5000000, High: $9000000)
Year 5: $3000000 (Low: $2000000, High: $8000000)
Year 10: $2000000 (Low: $1000000, High: $7000000)
Year 100: $1000000 (Low: $500000, High: $5000000)
Key Considerations
- The scalability of GIS technology for national mapping must be evaluated for long-term sustainability.
- Joint collaboration between state and federal agencies is necessary to harmonize reporting and align mitigation strategies.