Insurance department proposes $1 million Granite State resiliency fund to help homeowners cut premiums

The New Hampshire Insurance Department unveiled a proposal to create the Granite State Home Mitigation and Resiliency Program that would set aside the first $1 million of insurance premium tax receipts each year to fund homeowner grants aimed at reducing risk and lowering premiums.

The department’s proposal, offered as a non‑germane amendment attached to House Bill 2 97 at a public hearing, would provide grants of up to $10,000 on a first‑come, first‑served basis to fund property improvements such as roof fortification, exterior hardening, foundation flood protections and removal of hazardous trees. The program would target lower‑income homeowners with means testing aligned to the state’s weatherization eligibility rules, allow unspent funds to roll over for the first five years, and authorize the department to administer payouts in coordination with the Treasury.

Commissioner DJ Bettencourt, testifying for the Insurance Department, said the program is proactive and not a post‑disaster subsidy. “This is a proactive program,” he said, describing grants that can help homeowners both qualify for better underwriting and obtain insurer discounts. Bettencourt told the committee his office modeled the design on programs in other states — particularly Alabama, which has operated a similar program — and expects measurable premium savings where homes are fortified. He said eligible projects will range from full IBHS‑level retrofits to smaller, targeted actions such as removing a large hazardous tree that can cost several thousand dollars to remove but materially improve a home’s underwriting profile.

Bettencourt said the department would administer the program using a currently funded, repurposed staff position rather than adding headcount, and he described safeguards for grant payouts: contracts, itemized work invoices and a contractor affidavit to verify work was completed before final payment. He also said the department would allow limited upfront payments when contractors need funds to procure materials, with final payment following completion and final verification.

The proposed statute would require detailed eligibility and procedural language be included in statute rather than left to later rulemaking — a choice Bettencourt attributed to legislative leadership’s request that the program be described fully in statutory text for committee review. He said the program would use a means test identical to the state home heating/weatherization program to target limited dollars to households most in need.

Industry witnesses, including representatives of mutual and trade associations, expressed general support for the commissioner’s plan as a modest, testable approach to reduce the hard market’s effects on consumers. Chris Heckelopoulos of the National Association of Mutual Insurance Companies told the committee that other states’ pilots had demonstrated lower claim levels for fortified homes. The department also plans a public education effort and outreach with the New Hampshire Home Builders Association to engage contractors.

Committee members asked practical questions about administration, municipal impacts and whether the finance committee could alter funding or headcount; Bettencourt and staff said the single repurposed position is subject to Finance’s budget decisions and that unspent funds would roll back to the general fund after the five‑year rollover period. Several members pressed the department on how the amendment was attached to HB 2 97 as a non‑germane amendment; department staff explained the process and said leadership had asked the agency to take the proposal through policy committees.

The committee closed the public hearing on the non‑germane amendment and indicated the item would proceed to subcommittee and later to House Finance for further consideration.

Evidence from other states is limited but encouraging: Bettencourt cited Alabama’s multi‑state experience and told members that Alabama and other early adopters have shown a reduction in claims for fortified homes, while noting that Alabama’s program has been in operation only a couple of years and data are still accruing.

The department said the program is designed to scale if federal block grants or other funding become available, at which point scope and eligibility could be revisited by the Legislature.

What’s next: The amendment will be discussed in subcommittee next week; the department said it would invite Brian Powell — a former Alabama deputy insurance commissioner who helped design that state’s program — to the work session to answer technical questions.

— Reporting for the House Commerce and Consumer Affairs committee hearing on the HB 2 97 non‑germane amendment, testimony and public comment indicated support for a modest pilot fund that emphasizes means‑tested, proactive mitigation for homeowners to improve safety and reduce insurance costs.