Preventing Environmental Hazards Act of 2025

This bill adds erosion protection to the National Flood Insurance Program for buildings on shorelines that are condemned or unsafe because they’re at immediate risk of collapse or sinking from shoreline erosion. It lets the program pay to demolish or relocate a building before it falls. For demolition, the owner could get 40% of the structure’s value after the claim is approved, and the rest (up to 60% or the actual demolition cost, whichever is less) after the building is torn down within six months. For relocation, the owner could get up to 40% of the structure’s value, capped at actual moving costs. The value used is the lowest of a comparable market value, the inflation-adjusted purchase price, or the value listed on the flood policy. Claims can’t exceed the policy limit or $250,000, and contents (personal belongings) are not covered.

To qualify, the building must already have flood insurance: either for 12 months by the law’s enactment date or for a continuous four years before the local certification that it’s at risk. The policy must be in effect or newly issued after enactment; buildings without coverage on the certification date don’t qualify. After a payout is approved, there can be no future NFIP coverage or most federal disaster aid for that same structure—or a new one on the same parcel—except emergency help to save lives and protect health and safety. The law takes effect on enactment, and the agency will issue rules; protections apply to imminently threatened shoreline structures even before those rules are finalized .

Key points

• Who is affected: Owners of insured buildings along lakes or other waters that are condemned or unsafe due to imminent collapse or subsidence from shoreline erosion, including structures partly or wholly over water, on a shoreline bluff or escarpment, or below Mean Higher High Water on tidal waters.
• What changes: NFIP may pay for demolition (40% upfront, remaining up to 60% after timely teardown) or relocation (up to 40%, capped at actual costs); max claim is the policy limit or $250,000; contents are excluded; value is based on the lowest of three measures .
• When: Effective on enactment; applies to policies in effect or issued after that date; requires prior coverage (12 months by enactment or 4 years before certification). After payout, no future NFIP coverage or most disaster aid for the same site, except emergency aid .