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The bill increases access to and competition in the private flood-insurance market (potentially reducing taxpayer exposure), but raises risks of consumer confusion, adverse selection into NFIP, and competitive pressure on smaller market participants.
Homeowners gain broader access to private flood insurance and more policy choices because private insurers and agents can sell private policies while participating in the NFIP Write Your Own program.
Taxpayers and the federal budget could face lower long-term exposure to flood losses if the bill encourages a shift from NFIP to a larger private flood insurance market.
Private insurers and agents can market and sell private flood policies while still participating in NFIP, likely increasing competition, product innovation, and distribution options in the flood-insurance market.
Homeowners may face confusion when comparing private policies and NFIP coverage, increasing the risk that some consumers buy unsuitable policies and end up with coverage gaps.
If private insurers cherry-pick lower-risk properties, the NFIP could be left with a higher concentration of high-risk policies, raising NFIP premiums or fiscal pressure on taxpayers.
Smaller agents or adjustment organizations could face competitive pressure from larger insurers offering bundled private/NFIP products, potentially reducing market diversity and harming small businesses.
Based on analysis of 2 sections of legislative text.
Prohibits FEMA from requiring WYO-participating insurers, agents, brokers, or adjusters to refrain from offering private flood insurance as a condition of NFIP participation or related access.
Introduced June 12, 2025 by Richard Lynn Scott · Last progress June 12, 2025
Prohibits FEMA from forcing participating companies, insurers, agents, brokers, or adjustment organizations in the National Flood Insurance Program’s Write Your Own (WYO) arrangement to refrain from offering or selling private flood insurance as a condition of participation, use of insurer facilities/services, or eligibility for other NFIP activities. It also forbids FEMA from adding such non-compete restrictions to any new WYO agreements after the law takes effect.