Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Wildfire Mitigation topic
No spam. Unsubscribe anytime.
Insurance Commissioner and Local Officials Back Wildfire Retrofit Grants; Insurers Raise Underwriting, Funding Concerns
Summary
SB 6,079 would create a Strengthen Washington Homes pilot grant program using IBHS wildfire‑prepared standards and prohibit insurers from cancelling coverage for homes meeting those standards. Insurance Commissioner Patty Kreuter and local officials supported immediate action; insurer groups raised concerns about underwriting prohibitions and using the commissioner's regulatory account for funding.
Senate Bill 6,079 (briefed Jan. 22) would establish the Strengthen Washington Homes program to provide grants for retrofitting residential properties to wildfire‑prepared standards published by the Insurance Institute for Business & Home Safety (IBHS). The bill conditions grants on required permits, inspections and an IBHS designation, authorizes pilot projects, creates a program account in the State Treasury, and directs the Office of the Insurance Commissioner (OIC) to implement the program by rule. The bill also seeks to prohibit insurers from using wildfire risk as a disqualifying factor for coverage when the property has a current IBHS designation.
Washington State Insurance Commissioner Patty Kreuter testified pro, citing that homeowner policy nonrenewals have "doubled since 2021" in some communities and arguing the program will reduce losses and improve market conditions. Kreuter said initial setup and targeted grants would be supported by existing OIC funds and that rulemaking authorized by the bill would establish audit procedures and program safeguards.
Local officials described acute local impacts. Terry Cooper, mayor of Medical Lake, recounted the 2023 wildfire that destroyed roughly 240 homes in his small city and said insurers canceled coverage broadly in affected ZIP codes. Cooper supported the bill as a way to create community incentives for defensible space and hardening measures and to help keep insurance companies operating in Washington.
Insurance‑industry witnesses supported mitigation goals but identified two main concerns: (1) converting IBHS mitigation designations into mandatory underwriting eligibility could prevent insurers from considering residual, location‑specific risk factors (e.g., access and regional fire behavior), potentially prompting insurers to exit markets; and (2) section 10's proposal to fund the program using the commissioner's regulatory account (funded by premium taxes and regulatory surcharges) was characterized as an inappropriate use of a regulator's funding stream instead of a transparent, broader funding source. Representatives urged the committee to work with the commissioner on amendments addressing underwriting flexibility and funding mechanisms.
The committee closed public testimony after receiving recommendations and technical suggestions from Washington Community Wildfire Solutions, Washington Realtors, and climate and community groups; witnesses suggested grant coverage for IBHS application fees, equity provisions for low- and moderate-income homeowners, collaboration with local conservation districts and DNR, and flexible standards to reflect Washington's geographic diversity. No vote was taken at the hearing; staff and witnesses indicated further work with stakeholders would follow.
