Wildfire Insurance Coverage Study Act of 2025

This bill directs the Government Accountability Office (GAO) to conduct a comprehensive study on insurance coverage for damages from wildfires across the United States. The study aims to analyze the evolving landscape of wildfire risk and its impact on the insurance market, with the Comptroller General consulting relevant federal and state insurance officials. This research will inform Congress on the availability, affordability, and sustainability of wildfire insurance. The GAO study will encompass several critical areas, starting with an assessment of the extent and nature of wildfire risk in the U.S. This includes identifying trends in disaster declarations, effective mitigation practices, and the need for a national wildfire risk map. It will also examine the existing state of homeowners and commercial property insurance coverage , analyzing how private insurers have adjusted rates, cost-sharing, or declined renewals over the past decade, and the economic factors driving these changes. Furthermore, the study will investigate regulatory responses by State insurance agencies to increased premiums or coverage exclusions, including their use of rate regulation and the establishment of State residual market entities. Finally, it will delve into the challenges faced by private insurers in underwriting wildfire risk , such as difficulties in estimating future damages and the impact of housing development in high-risk areas. The report will also consider the effects of potential insurer exits from the market and the availability and affordability of coverage for vulnerable communities, with findings submitted to Congress within 12 months.