Rhode Island House Bill H5549

Rhode Island 2025 Regular Session

• Introduced: 2/26/25
• Refer: 2/26/25

Caption

Provides a framework through which the department of business regulation can seek grants to fund a home hardening program.

Impact

The implementation of H5549 is expected to create a significant impact on state laws regarding insurance and disaster recovery. By establishing a revolving fund specifically allocated for resilience projects, this will facilitate the availability of financial resources to homeowners, especially those in areas prone to catastrophic weather events. Additionally, it aims to encourage the adoption of higher construction and retrofitting standards to enhance property resilience, directly impacting homeowners' insurance policies by potentially lowering premiums for those who meet designated mitigation measures.

Summary

House Bill H5549 introduces the 'Strengthen Rhody Homes' program, designed to provide a framework whereby the Rhode Island Department of Business Regulation can apply for grants to fund initiatives aimed at home hardening against hurricanes and other catastrophic events. The bill amends existing laws concerning the Rhode Island Property and Casualty Insurance Guaranty Association, increasing the limits on claims for both personal and commercial properties up to one million dollars for certain losses. This legislation emphasizes the importance of ensuring that homes are better equipped to withstand severe weather through financial assistance for necessary home improvements.

Contention

Some potential points of contention around the bill include discussions on how grants will be allocated and administered, particularly concerning criteria for income levels and geographical risk factors. The bill states that priority will be given to lower-income families and those living in historically high-risk areas, which may raise questions about fairness and access to funds. Furthermore, as the program is dependent on federal grants and funds, the sustainability and reliability of funding sources could be contested among stakeholders. The limitation that it does not create an entitlement for property owners also raises concerns about the obligations of the state towards insurance and resilience funding.