Sponsors
The bill protects homeowners from losing NFIP preferred-rate status when they have private flood coverage, but it shifts potential fiscal risk to taxpayers and adds verification burdens for FEMA and property owners.
Homeowners with private flood insurance keep months of coverage counted as continuous, preserving eligibility for NFIP preferred (grandfathered) rates and avoiding sudden rate surcharges when they buy or switch policies.
Taxpayers could face higher NFIP costs or lower NFIP premium revenue if recognizing private-policy continuity increases program exposure or the private policies differ in coverage or claims handling.
Homeowners and FEMA may face added paperwork, verification burdens, and dispute risk because the NFIP would need to verify that private flood policies meet statutory requirements to count as continuous coverage.
Based on analysis of 2 sections of legislative text.
Requires that periods covered by qualifying private flood insurance count as continuous coverage under federal continuous-coverage rules.
Introduced June 12, 2025 by Richard Lynn Scott · Last progress June 12, 2025
Treats time covered by qualifying private flood insurance as continuous coverage for federal continuous-coverage rules. In practice, if a property owner had uninterrupted private-market flood insurance that met the federal mandatory-purchase standard, that period must count the same as continuous coverage under federal flood-insurance rules. The change affects how continuous-coverage determinations are made for flood insurance — for example, when assessing premium changes or penalties tied to lapses — by explicitly recognizing private-market policies as equivalent to National Flood Insurance Program coverage for continuity purposes.