Yuba-Sutter Times

Representatives Doug LaMalfa (R-CA) and Mike Thompson (D-CA) have introduced legislation aimed at providing homeowners in disaster-prone regions with tax credits to bolster their properties against wildfires and other risks. The bipartisan effort is a response to the escalating insurance crisis in California and other states, where insurers have been forced to increase rates or withdraw from certain markets due to the mounting frequency and severity of natural disasters.

LaMalfa emphasized the importance of empowering homeowners to protect their properties, particularly in the face of growing wildfire risks resulting from inadequate forest management. He stated, “Homeowners must be able to harden their property as they see fit... we’re bolstering resilience, but this will also hopefully reduce overall insurance rates and bring back suppliers that have left California entirely because of the risks.”

Thompson highlighted the pressing issue of property insurance affordability in his district, stating, “People can’t get covered... It’s an untenable situation – which is why this legislation is necessary.” He explained that by incentivizing homeowners to mitigate disaster risks on their properties, they aim to attract insurers back into the market and make insurance rates more accessible.

The proposed legislation comprises four key provisions, including a grant program to assist households in disaster-prone regions with up to $10,000 for disaster resiliency work on their homes. It also includes measures to ensure that payments from state and federal disaster resiliency programs do not count as income for federal tax purposes. Additionally, the legislation offers a 30 percent tax credit for qualified disaster risk mitigation activities to provide support to larger property owners for whom mitigation costs exceed the grant limit.

The comprehensive approach outlined in the legislation aims to address the current challenges faced by homeowners in securing affordable property insurance in high-risk areas. By incentivizing and supporting disaster mitigation efforts, the lawmakers hope to create a more resilient and sustainable insurance market in the face of increasing natural disasters.

In conclusion, the introduction of this legislation by Representatives LaMalfa and Thompson signals a proactive step towards mitigating the California insurance crisis and enhancing disaster resiliency among homeowners in vulnerable regions.