Sponsors (5)
The bill makes it easier and cheaper for certain owners—especially farmers and owners of multiple structures—to avoid costly elevation/floodproofing and to buy consolidated flood coverage, while increasing potential flood exposure and fiscal risk to the NFIP and leaving some consumers with higher premiums or fewer private-market options.
Communities that grant targeted variances for agricultural structures will retain access to the National Flood Insurance Program (NFIP) and won’t be suspended or placed on probation solely for providing those variances, preserving flood insurance availability and federal disaster-assistance eligibility for affected communities.
Owners of multiple structures (including homeowners with more than one building), multifamily rental owners, small businesses, and agricultural property owners can optionally buy consolidated or umbrella flood policies that simplify coverage and improve insurance availability tailored to those property types.
Requiring optional umbrella policies to be priced at least at the NFIP estimated premium helps protect the program’s actuarial soundness and reduces the risk of underpriced coverage that could undermine NFIP finances.
Taxpayers and the NFIP could face greater claims exposure and higher program-level actuarial risk if more at‑risk structures remain unprotected due to variances, increasing the potential fiscal burden on the insurance pool.
Farmers and other owners of varianced agricultural structures will face higher flood risk and greater likelihood of property damage because those structures may not be elevated or dry‑floodproofed.
Some property owners (including farmers, homeowners, and small-business owners) may pay higher premiums or out-of-pocket costs either because varianced structures are rated on a risk‑based basis or because optional umbrella policies must be priced at or above NFIP estimated premiums.
Based on analysis of 3 sections of legislative text.
Allows limited local variances for certain agricultural structures to avoid elevation/dry‑floodproofing with conditions, aligns their NFIP premiums to actuarial rates, and permits an optional umbrella NFIP policy for multi‑structure properties.
Introduced November 7, 2025 by Doug Lamalfa · Last progress November 7, 2025
Creates a limited exception to National Flood Insurance Program (NFIP) community participation rules so local governments can approve variances that let certain agricultural structures in high‑risk flood areas avoid elevation or dry floodproofing when specific safety, fraud, and claims-history conditions are met, and requires FEMA to charge actuarially consistent rates for those structures. Also authorizes FEMA to offer an optional umbrella NFIP policy for properties with multiple structures (commercial, residential, multifamily rental, and agricultural) and requires a 5‑year implementation report to Congress.