Grant program seeks to lower home insurance bills, boost climate resilience. Who will fund it?

Severe weather events are becoming increasingly common due to climate change, and the cost of home insurance is rising across the country as a result. On Wednesday, the House Committee on Commerce and Consumer Affairs voted unanimously in favor of a bill that would create a release valve for certain homeowners facing high premiums, though the funding channel for the program is still unclear. 

Senate Bill 562, from prime sponsor and Salem Republican Sen. Daryl Abbas, would create the Granite State Home Mitigation and Resiliency Program. As requested by the New Hampshire Insurance Department, the program would create grants of up to $9,500 for home improvement projects to make structures more resilient to the effects of severe weather. 

This could help lower the cost of insuring the homes, New Hampshire Insurance Department Commissioner D.J. Bettencourt said at an April 16 hearing. But the bill does not call for any funding to be appropriated.

Severe weather creates barriers to home ownership

The increase in severe weather associated with climate change has created a spike in insurance premiums in recent years in many states.

New Hampshire remains one of the more affordable states in the nation for home insurance, Bettencourt said at the April 16 hearing. But nonetheless, he said, costs can be a burden on homeowners.

“It’s a great place to be when compared with other states, but of course it does not mean that it’s affordable or not a challenge for individual homeowners,” he said. 

Many banks require proof of home insurance in order to secure a mortgage, meaning that high premiums can be a barrier to home ownership. Inflation and the rising cost of living are added pressures on homeowners. And the risk of damage from severe weather, he said, is on the rise.

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In New Hampshire, events like flooding, heavy snowfall in winter that can bring trees or roofs down, or microbursts of high winds that can accompany severe storms are of particular concern, Bettencourt said. 

The increase in severe weather events is associated with climate change caused by greenhouse gas emissions. Scientists say consequences like severe storms are arriving faster than originally predicted and will continue to worsen.

Providing grants that could finance mitigation measures against severe weather events — such as the fortification of a roof or the timely removal of a threatening tree — could help residents shore up their homes, Bettencourt said. 

Other states have implemented similar programs. The first to do so was Alabama, which established the Strengthen Alabama Homes act in 2011. Maine is preparing to launch a grant program this summer that will provide up to $15,000 for roof fortification projects in certain counties. 

Maine’s program was funded with an allocation from the state, Bettencourt said. But New Hampshire’s program, as proposed, will not receive state funding.

That was a sticking point in debate when the idea was first raised last year, and led to the idea being shelved until this session, Bettencourt said. 

He said that the state insurance department would pursue contributions from national philanthropic groups and climate-minded nonprofits to potentially fund the program. But until funds are secured, the program would remain dormant. 

The bill will be voted on by the full House later this year.