Sponsors (5)
The bill provides targeted federal buyout and relocation payments to NFIP-insured owners of imminently threatened shoreline homes to reduce imminent safety risks, while constraining future federal aid and placing caps and eligibility limits that may leave many owners undercompensated or uninsured for contents and rebuilding on the same parcel.
NFIP-insured homeowners with imminently unsafe shoreline properties can receive up to $250,000 toward demolition or relocation, reducing the risk of catastrophic loss and providing immediate financial relief.
NFIP-insured homeowners choosing relocation can receive up to 40% of a structure's pre-collapse value toward moving costs, lowering out-of-pocket relocation expenses.
Homeowners and local governments benefit from a predictable, time-limited payment schedule (40% up front, remainder after demolition within six months), which encourages timely hazard mitigation and reduces public-safety risks.
Homeowners still bear the loss of personal property because payments explicitly exclude contents, leaving them uncompensated for destroyed belongings.
Homeowners who accept buyout/relocation benefits are barred from future NFIP coverage or major Disaster Relief Act assistance for that parcel, significantly limiting federal options to rebuild or insure the same land going forward.
Owners of higher-value shoreline properties may be undercompensated because the $250,000 cap and conservative valuation rules (lowest of comparables, adjusted purchase price, or contract value) can fall short of actual loss.
Based on analysis of 2 sections of legislative text.
Establishes NFIP "erosion coverage" paying capped demolition or relocation benefits for shoreline structures condemned or imminently threatened by erosion, with valuation rules and limits on future federal aid.
Introduced May 1, 2025 by Gregory Francis Murphy · Last progress May 1, 2025
Creates a new "erosion coverage" under the National Flood Insurance Program (NFIP) that pays limited demolition or relocation benefits for shoreline structures condemned or deemed imminently unsafe because of shoreline erosion, subsidence, or placement over water. Payments are set by valuation rules, split-timed (an initial partial payment and a follow-up payment after demolition or relocation), capped at the lesser of the policy coverage or $250,000, and exclude personal contents. The change applies to existing and new NFIP policies subject to prior-coverage rules, bars a structure that receives benefits from receiving later NFIP or Disaster Relief Act assistance for that same structure or other structures on the parcel (with narrow emergency assistance exceptions), and requires the Administrator to issue regulations with a short interim rule for imminently threatened structures. The amendment takes effect on enactment.