It is an experience that has become all too common—homeowners are seeing their insurance premiums rise by hundreds or even thousands of dollars. And this crisis is not just limited to a couple of states: consumers are grappling with premium hikes across America. Many people are struggling to afford coverage or even finding out their insurance companies are dropping them due to increased risk.

Congress can take action to combat this. The Disaster Resiliency and Coverage Act, H.R. 1105, would establish a federal grant program to help consumers reduce their insurance risk and lower their premium costs. And Congress should pass it without delay.

Insurance premiums are spiking for a number of reasons, but one of the most important is climate change. Climate change is contributing to stronger and more frequent natural disasters in the form of more powerful hurricanes, larger and more dangerous wildfires, more frequent hailstorms and intense thunderstorms, tornados, and other extreme weather. These disasters are frequently occurring in places where they used to be quite rare and inflicting more damage and destruction.

All these events are impacting homeowners insurance costs. An analysis by the Federal Insurance Office found that from 2018 to 2022, average homeowners insurance premiums increased by 8.7% faster than the rate of inflation. Homeowners in places affected by frequent extreme weather events and natural disasters are facing especially high rates. A recent report by the Consumer Federation of America found that from 2021 to 2024, average homeowners insurance premiums increased by $648, or 24%, again well above the rate of inflation. More and more homeowners are getting dropped by insurance companies, who are refusing to renew their policies and forcing them to scramble for coverage. Finally, rising premiums are starting to increase overall housing costs, as people attempt to buy homes but find it difficult to afford insurance.

But disaster resiliency work, in the form of mitigation efforts, can greatly reduce risk and lower insurance costs. Examples of these efforts include maintaining defensible spaces around homes, strengthening roofs against storms or wildfires, installing enclosed eaves and fire-resistant vents to reduce the risk of embers, and installing multi-pane windows. However, these mitigation efforts cost substantial amounts of money, making them difficult or even impossible for middle-class and working-class homeowners to afford.

The Disaster Resiliency and Coverage Act would fix this problem. It will help address the insurance crisis by helping homeowners harden their homes against wildfires and other risks. The bill establishes a grant program, administered through states and tribal governments, where homeowners in areas vulnerable to disasters can get grants of up to $10,000 to strengthen their homes. Any homeowner who earns an annual salary of $250,000 or less would be eligible.

States and tribes will submit plans with information about the efforts that will be eligible for these grants, and how they plan to evaluate homeowners who apply for them. The act includes extensive lists of mitigation efforts that will be covered by these grants. Under this program, a $10,000 grant could be used to remove or reduce vegetation, strengthen a roof against windstorms and hurricanes, or elevate a home so it is less vulnerable to flooding. The grant program is designed to help homeowners reduce their risk for a whole bunch of weather events and natural disasters.

Finally, the bill provides a 30% tax credit to homeowners for qualifying mitigation efforts, beyond the grants already offered. A lot of work to strengthen homes costs substantially more than $10,000, and so this tax credit is supposed to be complimentary to the grant program, providing helpful assistance to homeowners for whom the $10,000 grant is not enough.

The Disaster Resiliency and Coverage Act is based on several state grant programs that have helped strengthen homes and are showing significant progress. Yet states just don’t have enough resources on their own to lower insurance costs and deal with the insurance affordability crisis. The federal government must help out as well.

But despite this crisis, the bill has not been voted on by Congress, or been endorsed by congressional leaders, or even received a committee hearing! And meanwhile, insurance costs continue to go up.

The time to act is now. By passing the Disaster Resiliency and Coverage Act, Congress can help make communities safer, make homeowners insurance more affordable, and boost homeownership.