HR5484-119

What This Bill Does

The National Flood Insurance Program Reauthorization and Reform Act of 2025 is a broad NFIP extension and overhaul. It extends NFIP authorities through September 30, 2030 and creates lapse-period funding continuity rules. It caps annual premium increases, creates targeted means-tested assistance for eligible policyholders with household income not more than 140 percent of area median income and high housing and insurance-cost burdens, allows optional monthly premium installments with a fee capped at $15, studies business interruption coverage, updates coverage limits, studies participation rates, and defines Write Your Own companies. The mitigation title sets aside Disaster Relief Fund money for high-risk property mitigation, revises increased-cost-of-compliance coverage, expands flood mitigation assistance grants, creates urban mitigation opportunities, requires Community Rating System regional coordinators, authorizes a mitigation loan pilot, and creates state or tribal revolving loan funds for flood mitigation. Mapping and rate provisions modernize flood maps, create premium-rate appeals, address levee-protected areas, require a premium calculator, and require premium-rate consideration of mitigation projects. Program finance and accountability provisions provide five years of Treasury interest forbearance on NFIP borrowing, cap WYO compensation, increase third-party service-provider transparency, study claims-data sales or licensing, address refusal of mitigation assistance, and treat multiple structures for mitigation surcharges. The claims title fixes earth-movement and engineer standards, covers some pre-FIRM condominium basements, requires remediation guidance, creates an Independent Office for Policyholder Appeals, audits underpayments and overpayments by WYO companies, gives policyholders access to claims documents and technical assistance reports, allows FEMA to terminate problematic WYO service-provider contracts, requires claim determinations within 60 days and payment within 30 days after approval, bars manipulation of engineering reports, trains floodplain managers, agents, and adjusters, requires flood insurance agents to complete three hours of continuing education every two years, reforms proof-of-loss forms, creates an Agent Advisory Council, requires property flood-hazard disclosures before new NFIP coverage, and gives policyholders a 90-day renewal grace period at the renewal offer rate.

Who Benefits and How

NFIP policyholder families benefit from the 2030 reauthorization, capped premium increases, monthly payment option, renewal grace period, claims-document access, appeal rights, and faster claim deadlines. Low-income flood insurance families benefit from means-tested assistance tied to area median income and housing-cost burdens. Flood-prone communities benefit from mitigation grants, state or tribal revolving loan funds, urban mitigation opportunities, and Community Rating System coordination. Homebuyer families benefit from flood-hazard disclosure requirements before new NFIP coverage can be issued for covered property transfers or leases.

Who Bears the Burden and How

FEMA NFIP administrators must implement affordability assistance, mapping modernization, mitigation programs, appeals, claims deadlines, agent training, advisory councils, and disclosure determinations. Write Your Own company claims managers face compensation caps, audits for underpayments or overpayments, third-party cost transparency, contract-termination risk, and claims-handling standards. Flood insurance training providers must support recurring three-hour NFIP continuing education courses for agents. Real estate compliance staff in participating jurisdictions must provide written flood-hazard disclosures before covered property transfers or leases.

Key Provisions

• Extends NFIP authorization through September 30, 2030 and creates lapse-period funding continuity.
• Caps annual premium increases and creates targeted means-tested flood insurance assistance.
• Funds mitigation through high-risk property measures, ICC coverage, grants, urban mitigation, loans, and revolving funds.
• Modernizes mapping, creates premium-rate appeals, addresses levee areas, and requires a premium calculator.
• Strengthens claims accountability through policyholder document rights, appeal offices, claim deadlines, engineer-report protections, WYO audits, agent training, and flood-risk disclosures.