The INSURE Act creates a federal backup insurance system to help property insurers handle catastrophic disasters like hurricanes, wildfires, floods, and earthquakes. Here's what it does: The Treasury Department will establish a reinsurance program—essentially insurance for insurance companies—that kicks in when an insurer's losses from major disasters exceed a certain threshold. This helps insurers afford to offer comprehensive property coverage to homeowners and businesses, especially in disaster-prone areas.

The program rolls out gradually over several years, starting with wind and hurricane coverage, then adding severe storms and wildfires, then floods, and eventually earthquakes. Insurance companies that participate must offer comprehensive "all-perils" policies covering these disasters and work with customers on loss prevention (like helping them make properties more disaster-resistant). Participating insurers pay quarterly premiums to fund the program, with rates based on their expected losses and administrative costs. If the fund runs short during a major disaster, the federal government can issue bonds backed by the U.S. Treasury to cover claims.

The bill also creates an advisory committee with representatives from consumer groups, insurance companies, state regulators, and federal agencies to oversee the program. It requires insurers to share detailed claims data quarterly so the government can monitor whether the program is working and whether people in underserved areas can actually get affordable insurance. Additionally, the bill establishes a pilot program allowing insurers to offer multi-year policies (5+ years) where premiums can only increase based on construction costs and home values, not changing disaster risk assessments—giving customers more price stability.