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Treats time a property had private-market flood insurance that met the federal mandatory-purchase standard as "continuous coverage" for all federal flood-insurance continuous-coverage rules. This means private policies that satisfied the mandatory-purchase requirement will count the same as National Flood Insurance Program coverage when determining preferred rates, surcharges, or other benefits tied to continuous coverage.
The bill protects homeowners' access to preferred NFIP rates and smooths transitions between private and federal flood policies by treating private coverage as continuous, but it raises potential taxpayer-backed exposure, may weaken incentives for private policy quality, and requires FEMA implementation work.
Homeowners (and renters where applicable) who buy private flood insurance will be treated as having continuous flood coverage, preserving eligibility for preferred NFIP rates, avoiding surcharges, and reducing disruptions when switching between private and NFIP policies.
FEMA will be directed to uniformly recognize private-market coverage periods across statutes and rules, reducing administrative disputes and inconsistent treatment by federal officials.
Taxpayers could face greater NFIP financial exposure if private policies with weaker terms are treated the same as NFIP coverage and lead to more or larger claims backed by the federal program.
Private insurers and some homeowners may have weaker incentives to maintain NFIP-comparable policy standards, which could complicate post-loss claims coordination and reduce protection quality for affected property owners.
Implementing the change will likely require FEMA rulemaking and administrative adjustments, causing temporary confusion or delays for property owners, lenders, and federal staff.
Introduced June 12, 2025 by Richard Lynn Scott · Last progress June 12, 2025