Sponsor
Richard Lynn Scott
Senator · R-FL
Senator · R-FL
The bill protects homeowners from losing grandfathered NFIP rates when using private flood insurance, at the cost of potential higher NFIP exposure and added administrative verification burdens that could shift costs or complexity onto taxpayers and FEMA.
Homeowners with private flood insurance keep their coverage treated as continuous when they buy or change policies, preserving eligibility for NFIP preferred (grandfathered) rates and avoiding sudden premium surges or surcharges.
Taxpayers (and the NFIP) could face higher costs or reduced premium revenue if recognizing private-policy continuity increases program exposure because private policies differ in coverage or claims handling.
FEMA and property owners may face added administrative burden, paperwork, and potential disputes from verifying private policies meet statutory requirements to count as continuous coverage.
Based on analysis of 2 sections of legislative text.
Requires NFIP to count qualifying private flood insurance periods as continuous coverage for continuous-coverage rules.
Official title: Allow National Flood Insurance Program policyholders who leave the program to purchase a private insurance flood policy to return to the National Flood Insurance Program without penalty, and for other purposes.
Introduced June 12, 2025 by Richard Lynn Scott · Last progress June 12, 2025
Treats time covered by qualifying private-market flood insurance the same as time covered by National Flood Insurance Program (NFIP) policies when applying continuous-coverage rules. The change ensures private flood policies that met the mandatory purchase requirement count toward preventing higher premiums or penalties that rely on a continuous-coverage history.