Two industry-supported bills that would provide federal financial incentives to strengthen homes against major storms were introduced in the House the first week of June.

The Natural Disaster Mitigation Act, H.R. 2099, provides a tax credit to low-income homeowners who take action to protect their properties to reduce vulnerability to damage from natural disasters, such as earthquakes and hurricanes. The bill was introduced by Reps. Thomas Rooney (R-Fla.) and Bennie Thompson (D-Miss.).

Another bill, the Safe Building Codes Incentive Act, H.R. 2069, would provide additional post-disaster relief in the aftermath of a severe storm for those states with strong statewide building codes. That bill was introduced by Reps. Mario Diaz-Balart (R-Fla.), Albio Sires (D-N.J.), and Richard Hanna (R-N.Y.).

The Rooney/Thompson bill is being strongly advocated by the Reinsurance Association of America, the Heartland Institute, the Association of Bermuda Insurers and Reinsurers, and the Smarter Safer Coalition. Officials of the Property Casualty Insurers Association of America (PCI) also voiced support.

Frank Nutter, president of the Reinsurance Association of America, calls the Rooney/Thompson bill “fiscally and socially responsible because it is focused on prevention in those regions of the country at greatest risk to catastrophic events.”

He adds that with the prediction of an active hurricane season, this legislation underscores the need for homeowners to mitigate their homes to withstand natural disasters.

As introduced, H.R. 2099 would provide a tax credit equal to 25 percent of mitigation expenditures up to $5,000 to low-income homeowners who take steps to protect their properties.

Brad Kading, president of the Association of Insurers and Reinsurers, said the “best role for the government is to encourage citizens to protect their property against damage from natural catastrophes. One dollar spent today will save four dollars in future repair costs.”

“The worst role for the government is to subsidize annual insurance costs, he added. “The one-time investment in mitigation protects both people and property and prevents unwise incentives that increase risk and put families in harm's way.”

The Diaz-Balart/Sires/Hanna bill would provide an additional 4 percent of funding available for post-disaster grants under a program administered by the Federal Emergency Management Agency (FEMA).

“The Safe Building Codes Incentive Act represents a major positive step toward the goal of properly preparing this country for major disasters through the construction of stronger buildings,” said Matt Gannon, assistant vice president of federal affairs for the National Association of Mutual Insurance Companies (NAMIC).