Sponsors (5)
Adds NFIP "erosion coverage" to pay demolition or relocation costs for insured shoreline structures condemned or unsafe from erosion, capped at policy limit or $250,000.
Official title: To make protection against damage and loss resulting from the erosion and undermining of shorelines available under the National Flood Insurance Program, and for other purposes.
Introduced May 1, 2025 by Gregory Francis Murphy · Last progress May 1, 2025
The bill provides immediate, predictable federal payments to NFIP-insured homeowners to demolish or relocate imminently failing shoreline structures—reducing near-term financial shock and enabling relocation—but it limits future federal aid for the same property and leaves gaps (eligibility, contents, cap, and administrative costs) that may leave some owners exposed.
Homeowners with NFIP flood insurance facing imminently collapsing shoreline structures can get up to $250,000 toward demolition or relocation, with an initial payment (up to 40% of structure value) before collapse and the remainder (up to 60%) after proof of demolition—reducing out-of-pocket loss and helping preserve property value.
At-risk homeowners gain faster, interim federal relief and clearer payment rules (40% advance then 60% on demolition proof), allowing quicker access to assistance and more predictable recovery steps.
The advance payment option (40% before collapse) can enable timely relocation actions that help avoid catastrophic loss of the dwelling itself.
Homeowners who recently purchased a property or held only brief NFIP coverage may be ineligible for this assistance, leaving some at-risk owners without access to the program.
Recipients are barred from later NFIP or most Disaster Relief Act assistance for the same or a replacement structure on the parcel, meaning homeowners who accept this immediate help may lose access to substantial future federal aid for that property.
The $250,000 cap (or the policy limit) may be insufficient for demolition or relocation of high-value homes, leaving owners to cover significant remaining costs.
Based on analysis of 2 sections of legislative text.
Creates a new NFIP "erosion coverage" benefit requiring the NFIP Administrator to pay demolition or relocation costs for insured shoreline structures condemned or deemed unsafe because of imminent collapse, subsidence from shoreline erosion, or placement over water or below Mean Higher High Water. Payments are structured as up to 40% of structure value after final NFIP determination and the remaining 60% (or actual demolition cost, if less) after demolition within six months, or up to 40% (not exceeding actual cost) for relocation; coverage excludes contents and is capped at the lesser of the policy limit or $250,000. Applies to policies in force on or entered after enactment with prior continuous coverage requirements, bars later NFIP or most Disaster Relief Act aid for the same or replacement structure on the parcel, requires Administrator regulations (with interim rules for imminently threatened structures), and becomes effective on enactment.