The bill S.F. No. 2205 establishes a Task Force on Homeowners and Commercial Property Insurance in Minnesota. The goal is to evaluate issues related to insurance affordability for single-family housing, multifamily rental housing, common interest communities, cooperatives, and small businesses, while also addressing development and long-term sustainability concerns.

Key Provisions:

1. Task Force Formation:

   • Composed of representatives from the Department of Commerce, the legislature (both majority and minority party members from the House and Senate), industry groups (Insurance Federation of Minnesota, Big I Minnesota, Minnesota Realtors), housing organizations, financial institutions, and a climate science expert.
   • Appointments must be made by July 15, 2025.

2. Responsibilities:

   • Develop recommendations to strengthen and stabilize the insurance industry.
   • Consult with various state agencies and stakeholders.
   • Review key insurance issues, including:
     • Risk mitigation methodologies.
     • Liability laws impacting costs.
     • Minimum notice for coverage changes and oversight.
     • Public reporting of aggregated insurance data.
     • The reinsurance market for homeowners and commercial insurance.
     • State-supported insurance programs, including a potential catastrophic reinsurance fund.
     • Factors increasing claim costs (e.g., fraudulent claims, inflation, climate risks).

3. Meetings:

   • First meeting must occur by August 15, 2025.
   • Meetings will follow Minnesota's open meeting laws.
   • The Legislative Coordinating Commission will facilitate meeting logistics.

4. Report Requirement:

   • The task force must submit a report by February 15, 2026 to the Department of Commerce, Minnesota Housing, and the Department of Employment and Economic Development, as well as key legislative committees.
   • The report will contain:
     • A summary of activities.
     • Findings and recommendations.
     • Suggested administrative changes.
     • Draft legislation for potential reforms.

5. Expiration:

   • The task force will dissolve upon submission of its final report.

Purpose:

This bill aims to address affordability and stability in the property insurance market, particularly given rising costs and systemic risks such as climate events and fraud.