Insurance commissioner proposes $1 million Granite State home mitigation fund to help lower homeowners premiums

Insurance Commissioner D.J. Bettencourt told the House Commerce and Consumer Affairs Committee that the New Hampshire Insurance Department will seek a non‑germane amendment to House Bill 2 97 to create a Granite State Home Mitigation and Resiliency Program funded by the first $1 million of annual insurance premium‑tax revenue.

Bettencourt said the program would offer grants of up to $10,000 on a first‑come, first‑served basis to help homeowners undertake mitigation work such as roof fortification, exterior improvements, foundation work to reduce flood risk, or removal of large hazardous trees. “This is a proactive program. I wanna be very clear about that,” Bettencourt said, adding the intent is to reduce premiums and keep more homeowners in the admitted market.

The program design and legislative approach

Bettencourt told members the department chose to include the program in the House Bill 2 budget process because of the budgetary impact and to give legislators full statutory detail up front instead of relying primarily on later rulemaking. He said leadership advised the department to staff the proposal with as much specificity as possible and to take the proposal through committee vetting. The draft would put the first $1 million collected via the insurance premium tax into a dedicated fund each year, with the department proposing that unspent money roll over for the first five years so outreach and takeup can build.

Why department officials back the plan

Bettencourt described the program as modeled on schemes in other states (he cited Alabama, Louisiana and North Carolina) and said the department has consulted states with operating programs and with Brian Powell, the deputy insurance commissioner who helped Alabama set up its program. Bettencourt said some states have already seen fortified homes sustain fewer claims in catastrophic events and that the department is trying to maximize the number of households helped by allowing smaller projects as well as more ambitious IBHS gold‑star standard projects.

Program details and safeguards

Under the proposal, grants would be means‑tested using the same eligibility criteria as the state’s Home Weatherization/Heating Assistance program so dollars target lower‑income homeowners. The draft makes clear payments are primarily post‑completion: applicants must submit a signed contract, an itemized statement of work and a sworn affidavit from the contractor confirming completion before final payment. Bettencourt acknowledged some contractors will need an upfront draw to begin work; the draft allows an initial payment in those circumstances with the remainder released on completion. Emily Doherty, property & casualty counsel at the department, told the committee the draft’s page 4, line 17 provision (identified in testimony as proposed 407‑e:9) spells out the payment safeguards and documentation requirements.

Funding, scale and expectations

Bettencourt repeatedly described the program as intentionally modest at first — one million dollars per year — and as a vehicle to receive additional federal block grants if Congress creates a funding stream for resiliency programs. He said the department expects many grants to be well below the $10,000 cap and cited a household example of a $6,500 tree removal that would materially improve a home’s insurability. Staffing for program administration would be repurposed from an existing, currently funded position in the Insurance Department; the department said it would coordinate payments with the state Treasury.

Public and industry reaction

Industry testimony at the hearing included support from the National Association of Mutual Insurance Companies and representatives of multiple carriers who said they back the mitigation approach. Chris Heckelopoulos of NAMIC said states with similar programs have reported reduced claims for fortified homes. Bettencourt said the department expects to bring the proposal to committee work session and to invite technical witnesses to help members vet eligibility and scoring details.

What the committee did

The committee held a public hearing on the amendment; the item will return to a committee work session and to subcommittee process as part of the House Bill 2 budget deliberations. No formal vote on the amendment was recorded at the hearing.

Why it matters

Bettencourt told the committee the program aims to ease homeowners’ premiums, prevent placement in costly surplus lines markets, and increase home safety. Because the program uses premium‑tax revenue, it is not a general‑fund appropriation and is structured to roll unspent amounts into future years during early outreach. The department said it will monitor effect and would propose eligibility adjustments if additional federal funds become available.

Ending note

Bettencourt asked members to continue questions in subcommittee and work session, where the department plans to bring additional technical witnesses and the details of application, means testing, and coordination with Treasury.