H.R. 5484 — National Flood Insurance Program Reauthorization and Reform Act of 2025

This section reauthorizes the National Flood Insurance Program (NFIP)—which enables property owners in participating communities to purchase federally backed flood insurance policies—through September 30, 2030 (from September 30, 2023) by (1) extending the period for the Federal Emergency Management Agency's (FEMA's) elevated borrowing authority under section 1309(a) (42 U.S.C. 4016(a)) to $30.425 billion with presidential approval (from $1.5 billion) through that date; and (2) extending the program's expiration date under section 1319 (42 U.S.C. 4026) to that date. The amendments apply retroactively as of September 30, 2025, if enacted after that date. This section further amends section 1310(f) of the National Flood Insurance Act (42 U.S.C. 4017(f)) to authorize continued NFIP operations during lapses in appropriations from the National Flood Insurance Fund by making available unappropriated Fund amounts up to the rate provided in the prior fiscal year's appropriation Act, with such expenditures charged to subsequent appropriations.

This section limits annual increases in National Flood Insurance Program (NFIP) covered costs—including premiums, certain surcharges (e.g., under NFIP Act §1308A(a)), and fees (e.g., under §1307(a)) but excluding compliance coverage surcharges under NFIP Act §1304(b) (42 U.S.C. 4011(b))—to 9% (from 18% for most policies or 25% for others under prior NFIP Act §1308(e)) for five years from enactment, notwithstanding §1308(e); the cap applies until full actuarial rates under Risk Rating 2.0 (or similar methodology) and transfers to new owners upon property sale. (Thus, the Federal Emergency Management Agency must establish proportional increase processes for policyholders decreasing deductibles or increasing coverage.) This section also (1) permits reductions in covered costs; (2) amends NFIP Act §1308(h) to require average historical loss year calculations using generally accepted actuarial principles; and (3) amends NFIP Act §1308(j) to require affordability standard exception reports to Congress to include exception counts and policyholder locations by county and state.

This section establishes a means-tested flood insurance assistance program under the National Flood Insurance Program (NFIP), authorizing the FEMA Administrator to provide graduated discounts on insurance costs (i.e., risk premiums and fees under NFIP sections 1307 and 1308, surcharges under sections 1304 and 1308A, and amounts under section 1310A(c)) for 1-4 family dwellings and related personal property owned by eligible policyholders with household income not exceeding 140% of area median income (AMI) for the property location, subject to appropriations. (As background: The NFIP enables property owners and tenants in participating communities to purchase federally backed flood insurance to cover flood damage not typically insured privately.) Eligibility may be determined via income verification from the National Directory of New Hires, self-certification under penalty of perjury pursuant to 28 U.S.C. 1746, or other Administrator-specified methods; discounts are graduated based on (1) household income as a percentage of 120% AMI, (2) housing expenses (i.e., mortgage or rent, property taxes, homeowners insurance, and NFIP premiums), (3) program participation levels, (4) funding availability, and (5) other relevant factors. The Administrator must issue interim guidance within one year of enactment (expiring after 84 months or upon final rules) describing eligibility, assistance levels, methodology, and policyholder requirements; submit biennial reports to Congress starting two years after enactment on program implementation, effectiveness, costs, participant numbers and average assistance (disaggregated by income and demographics including race and ethnicity), and income distribution relative to AMI; collect related demographic data; and provide recipients with full flood risk determinations under NFIP section 1308(l).

This section authorizes optional monthly installment payments for National Flood Insurance Program (NFIP) premiums—previously available only on an annual basis—and permits the FEMA Administrator to charge policyholders electing monthly payments an annual fee of up to $15. It exempts implementation from notice-and-comment rulemaking and other regulatory analyses until final regulations are promulgated, allowing the Administrator instead to adopt interim policies and procedures or conduct a pilot program.

This section directs the FEMA Administrator to conduct a study on the feasibility and soundness of offering business interruption coverage (i.e., for flood-related business losses) under the National Flood Insurance Program (NFIP). The study must, at a minimum, (1) evaluate insurance industry best practices for such coverage, including types and utilization rates; (2) estimate potential risk premium rates based on flood risk metrics; (3) analyze operational and administrative expenses for providing coverage and adjusting claims; (4) identify potential obstacles to offering such coverage; (5) evaluate benefits; (6) analyze impacts on the NFIP's financial position; and (7) develop a feasibility implementation plan and projected timelines. The Administrator must complete the study by September 30 of the second full fiscal year after enactment and may use personnel from other federal agencies and employ experts without certain civil service restrictions.

This section establishes eligibility for owners of shares in cooperative buildings (i.e., as defined in section 1312(d) of the National Flood Insurance Act of 1968) to purchase flood insurance under the National Flood Insurance Program on the same terms as condominium owners. It further revises claims payment procedures under such section 1312 to extend condominium association treatment to cooperative associations and their share owners (i.e., inserting references to cooperatives in subsection (c) and adding definitions in new subsection (k)).

This section revises maximum flood insurance coverage limits under the National Flood Insurance Program (NFIP)—which provides standardized flood insurance policies to property owners in participating communities—by (1) changing from mandatory ("shall be made") to permissive ("may be made") for coverage above the standard amount; (2) replacing the fixed building coverage limit of $250,000 with the baseline amount; (3) replacing the fixed contents coverage limit of $100,000 with 50% of the baseline amount; and (4) replacing the fixed higher building coverage limit of $500,000 with 200% of the baseline amount. It defines the baseline amount as the maximum original principal obligation of a conventional mortgage secured by a single-family residence that may be purchased by the Federal National Mortgage Association (Fannie Mae), as established under 12 U.S.C. 1717(b)(2), which the FEMA Administrator may not increase more than once every five years, increase for any particular property pursuant to specified charter provisions, or decrease. This section further authorizes the FEMA Administrator to sell NFIP policies providing coverage at the levels in paragraphs (2), (3), and (4) of revised section 1306(b) without regard to 44 C.F.R. §61.6 or other law.

This section directs the Comptroller General of the United States to conduct a study proposing programmatic and regulatory changes to increase rates of flood insurance coverage for properties nationwide, including properties with federally backed mortgages (i.e., improved real estate or mobile homes securing loans made or purchased by regulated lending institutions, Federal agency lenders, Fannie Mae, or Freddie Mac, as defined in 42 U.S.C. 4003(a)). In conducting the study, the Comptroller General must (1) consider expanding the National Flood Insurance Program (NFIP) to moderate- and minimum-risk flood areas, automatically enrolling consumers with an opt-out option, and bundling flood insurance with multi-peril coverage; (2) determine the percentages of such properties in special flood hazard areas and the 500-year floodplain (as defined in 40 U.S.C. 4004(a)) covered by NFIP-compliant insurance; and (3) assess economic and social impacts of Risk Rating 2.0 over the next 20 years on NFIP affordability and availability, property values, federal disaster aid for uninsured properties, and non-federal revenues. The Comptroller General must submit a report on the study to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services within 18 months of enactment.

This section adds to the definitions in the National Flood Insurance Act of 1968 (1) "Write Your Own Program," meaning the Federal Emergency Management Agency program under which private property insurance companies sell contracts for federal flood insurance under their own business lines and adjust and pay related claims; and (2) "Write Your Own Company," meaning a private property insurance company participating in that program.

This section amends sec. 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) to require the President to set aside from the Disaster Relief Fund, for flood mitigation assistance under the Flood Mitigation Assistance program (42 U.S.C. 4104c), an amount equal to 10% of the average amount appropriated to the fund during the preceding 10 fiscal years. (As background, the Flood Mitigation Assistance program provides grants to states, communities, and property owners for planning and implementing activities to reduce flood damage to structures insured under the National Flood Insurance Program.) The set-aside targets (1) severe repetitive loss structures and (2) National Flood Insurance Program-insured properties with the largest increases in actuarial risk compared to the prior fiscal year due to Risk Rating 2.0 (as in effect on October 1, 2021); the requirement applies to funds appropriated on or after enactment. Effective October 5, 2025, the new subsection (n) added by this section is redesignated as subsection (m).

This section expands eligibility for increased cost of compliance (ICC) coverage under the National Flood Insurance Program (NFIP)—which reimburses policyholders for costs to elevate, floodproof, demolish, or relocate flood-damaged structures to comply with community floodplain management regulations—by adding as eligible properties (1) those identified by the FEMA Administrator as mitigation priorities before flood damage and (2) those outside special flood hazard areas in communities with land use controls under NFIP standards (42 U.S.C. 4102). It further (1) establishes a $120,000 aggregate coverage limit per property; (2) specifies eligible mitigation activities, including alternative methods in FEMA guidelines, pre-disaster projects for eligible structures (i.e., those built to code without prior ICC assistance), and acquisition/relocation projects requiring perpetual dedication to compatible open-space uses, prohibition on further federal disaster aid, and lifelong flood insurance maintenance with transferor notification duties and penalties for noncompliance; and (3) provides that ICC coverage does not count toward other NFIP coverage limits or repetitive loss claims. (Thus, ICC claims cannot trigger surcharges or loss ratio restrictions under NFIP.) The provision retains the existing policy surcharge of up to $75 and authorizes FEMA to implement via Federal Register notices.

This section revises the Flood Mitigation Assistance (FMA) grant program—under which the FEMA Administrator provides grants to states, communities, and certain property owners from the National Flood Mitigation Fund for planning and activities to reduce flood damage to structures insured under the National Flood Insurance Program (NFIP)—to require, in addition to existing grant mechanisms, priority for repetitive loss structures that have unaffordable NFIP premiums (defined as causing housing expenses to exceed 30% of adjusted gross income) or premiums soon to become unaffordable due to Risk Rating 2.0, and for which aggregate losses exceed replacement value. It also authorizes appropriations of $1 billion annually from the general fund of the Treasury for each of the first five full fiscal years after enactment to the National Flood Mitigation Fund for such assistance (not from the National Flood Insurance Fund).

This section amends the National Flood Insurance Act of 1968 to expand the list of community floodplain management mitigation strategies to include (1) methods deployable on a block or neighborhood scale for buildings in dense urban environments and (2) elevation of mechanical systems. It further amends NFIP premium rate standards (42 U.S.C. 4015(k)) to require the FEMA Administrator to offer policyholders a risk premium rate reduction of not less than 10% for implementing any such mitigation method (in addition to the prior requirement to take mitigation activities into account).

This section directs the FEMA Administrator to appoint a regional coordinator in each region served by a Department of Homeland Security Regional Office to provide technical assistance to small communities for effective participation in and benefits from the Community Rating System program under the National Flood Insurance Program (i.e., a voluntary incentive program offering flood insurance premium discounts—up to 45%—to participating communities that exceed minimum floodplain management standards). It authorizes appropriations of such sums as necessary to carry out this requirement, to remain available until expended.

This section establishes a pilot program authorizing the FEMA Administrator to provide low-interest loans to National Flood Insurance Program (NFIP) policyholders for mitigation measures (i.e., actions to reduce flood damage risk to structures) that cost less than the estimated NFIP premiums the property would incur over 50 years without such measures. If the property is sold, the outstanding loan balance must be repaid from sale proceeds or, with purchaser consent prior to sale, carried over to the new owner.

This section establishes a new section 1326 in chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) authorizing the FEMA Administrator to provide capitalization grants to participating States or Tribal governments for revolving loan funds that offer assistance to homeowners (including low-income owners of primary residences), businesses, nonprofits, and communities for flood mitigation measures (e.g., for pre-FIRM buildings) to reduce loss of life and property damage, flood insurance costs, and federal disaster payments. Participating entities must deposit grants in the revolving fund by the end of the fiscal year after receipt and enter binding agreements to distribute funds such that 75% of an initial grant is obligated within two years and 90% of subsequent grants within one year, with noncompliance triggering reallocation to other entities (except those that previously failed in the same fiscal year). Grant allocations are divided as follows: (1) 50% pro rata based on each participating entity's share of total National Flood Insurance Program (NFIP)-insured properties in the prior fiscal year; and (2) 50% pro rata based on each entity's share of average NFIP premiums per insured property in the prior fiscal year, as determined by dividing entity-specific premiums by insured properties, summing quotients across entities, and apportioning accordingly.

This section amends provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 governing the Technical Mapping Advisory Council (TMAC) for the National Flood Insurance Program (NFIP) and the NFIP flood mapping program as follows: (1) revises TMAC membership by adding the Director of the U.S. Geological Survey and an expert in catastrophic risk modeling, increasing total members to 17 (from 16), and prohibiting conflicts of interest related to recent FEMA contractors, consultants, or grantees; (2) directs TMAC to establish standards within one year for state and local governments and certain planning organizations to develop alternative flood maps, which the FEMA Administrator must certify within 90 days for use as official NFIP flood insurance rate maps if the existing map has not been updated in the prior three years (with certified maps protected from revision for three years and initial implementation exempt from Administrative Procedure Act rulemaking); and (3) for the NFIP mapping program, expands priority areas to all U.S. regions, requires partnerships with federal agencies, states, and private entities as appropriate, mandates consultations with specified agencies for up-to-date data on topography and related factors, and broadens required mapping needs assessments to include such data and cadastral features with parcel identification and address information.

This section directs the Administrator, not later than 180 days after the date of enactment, to establish a fair, transparent, and streamlined process to manage disputes regarding chargeable premium rates under section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015). Such disputes concern, with respect to a property, (1) the distance from an ocean, coastline, lake, or river; (2) the elevation of the property; (3) the ground elevation of the property; (4) the first floor height of the property; (5) the type of foundation with respect to the property; or (6) the quality of any levee on the property.

This section adds requirements to FEMA's ongoing program for reviewing, updating, and maintaining National Flood Insurance Program (NFIP) rate maps with respect to areas protected by levee systems. Specifically, for communities where FEMA establishes NFIP flood insurance rates in such areas, the section— (1) requires FEMA, within one year of enactment, to issue rules, guidance, or use existing procedures (working with Local Levee Partnership Teams) to assess the protection level provided by non-accredited levee systems (i.e., those failing to meet NFIP minimum standards in 44 CFR 65.10 or successor under Risk Rating 2.0) and to set rates for those areas; (2) prohibits FEMA from increasing rates for structures in such areas lacking sufficient risk data until completing the assessment and sharing the underlying data; (3) prohibits FEMA from designating areas protected by accredited levee systems (meeting 44 CFR 65.10 standards) as special flood hazard areas (SFHAs) or imposing mandatory flood insurance purchase requirements; and (4) requires FEMA, within one year of enactment, to establish an appeals process for communities disputing levee protection assessments or associated residual risk, with specified definitions of "levee" and "residual risk." (Thus, the changes address rate impacts and mapping designations for levee-protected communities under NFIP's Risk Rating 2.0, which bases premiums on individual flood risk rather than prior zone-based averages.)

This section expresses the sense of Congress that the Administrator should consider flood mitigation activities that (1) provide benefits to an entire floodplain or community, or a portion thereof; (2) consider all available and practicable approaches; and (3) the Administrator determines are technically feasible, have the highest net benefits, and are consistent with mitigation plans approved by the Administrator.

This section directs the FEMA Administrator, with respect to properties insured under the National Flood Insurance Program (NFIP), to (1) not later than 60 days after enactment, publicly disclose formulas for calculating mitigation credits (including for flood openings, elevation on posts/piles/piers, and elevating machinery/equipment above the lowest floor); (2) not later than 90 days after enactment, establish a public online tool to estimate chargeable premium rates under Risk Rating 2.0 (or successor methodology) based on user inputs, including projected rate changes from mitigation measures; and (3) not later than 1 year after enactment and annually thereafter, publish online by state, county, and ZIP code the median, mean, lower/upper quartiles, maximum, and minimum chargeable premium rates and full-risk premium rates. (Thus, the tool enables prospective policyholders to assess NFIP affordability and mitigation incentives under individualized Risk Rating 2.0 premiums, which replaced prior community-wide rates.)

This section expands the flood mitigation activities considered in calculating estimated risk premium rates under section 1307(a)(1)(A)(ii) of the National Flood Insurance Act of 1968 and chargeable premium rates under section 1308(b)(1) to include projects carried out by the Army Corps of Engineers; under the community development block grant (CDBG) program for disaster recovery or mitigation; sections 203 or 205 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or the Federal Emergency Management Agency's Building Resilient Infrastructure and Communities (BRIC) program. (Thus, properties implementing these projects may qualify for lower National Flood Insurance Program premiums reflecting reduced flood risk.)

This section prohibits the Secretary of the Treasury from charging the FEMA Administrator interest, for the five-year period beginning on the date of enactment, on amounts borrowed under the National Flood Insurance Program (NFIP) borrowing authority (42 U.S.C. 4016(a)) that are outstanding as of enactment—including post-enactment borrowings that refinance such pre-enactment debts. It requires deposit into the National Flood Mitigation Fund of an amount equal to the forgone interest, for use in the Flood Mitigation Assistance program (42 U.S.C. 4104c) (i.e., grants to reduce flood damages through property elevation, acquisition, or relocation). It further permanently forgives such interest, prohibiting any repayment requirement after the five-year period.

This section limits reimbursements to Write Your Own (WYO) property and casualty insurance companies under the National Flood Insurance Program (NFIP)—which allows private insurers to sell and service federally backed flood insurance policies—to no more than 22.46% of aggregate premiums charged for selling, writing, and servicing such policies (previously determined through negotiated schedules of operating costs and allowances without a specific cap). It further requires WYO companies to pay their agents a commission of at least 15% of premiums sold by the agent.

This section amends sec. 100224(d) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4081 note)—which requires a FEMA rule on Write Your Own (WYO) program costs, under which private insurers sell and service National Flood Insurance Program (NFIP) policies and are reimbursed by FEMA—to add requirements that, in issuing the rule, FEMA must (1) develop a schedule to determine actual costs of WYO third-party service providers, including claims adjusters and engineering companies; (2) reimburse WYO companies only for actual vendor costs when requested; and (3) publicly disclose all such reimbursements, including descriptions of the products or services provided. The section further directs FEMA to issue the revised rule within 90 days of enactment.

This section directs the FEMA Administrator to study the feasibility of selling or licensing historical structure-specific National Flood Insurance Program (NFIP) claims data to nongovernmental entities, including at minimum (1) methods to provide the most specific data possible while protecting policyholder privacy; (2) review of existing federal and nongovernmental data leasing or licensing practices; (3) identification of potential uses and risks, including private insurers using the data to issue policies only for low-flood-risk properties and leaving higher-risk properties to the NFIP; (4) mechanisms to determine market value for data access; (5) compliance with the Privacy Act of 1974 (5 U.S.C. §552a); (6) review of costs and benefits of prior NFIP data releases; and (7) recommendations to prevent unintended consequences. Not later than one year after enactment, the Administrator must submit a report on the study, including its results, conclusions, and analysis of recommendations, to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services.

This section amends the Flood Mitigation Assistance program (42 U.S.C. 4104c)—which provides grants to states, communities, and certain property owners to plan and implement measures reducing flood damage to structures insured under the National Flood Insurance Program—(1) to authorize financial assistance for severe repetitive loss structures using amounts from the Disaster Relief Fund, in addition to the National Flood Mitigation Fund; and (2) to impose a 25% annual increase in the chargeable risk premium rate for flood insurance on any policyholder who, after enactment of the National Flood Insurance Program Reauthorization and Reform Act of 2025, refuses a bona fide offer of assistance. A bona fide offer covers 100% of mitigation costs for the insured structure under an approved mitigation plan while permitting the policyholder to continue residing there. (Thus, premium increases continue yearly until the offer is accepted or the rate reaches actuarial soundness.)

This section establishes an exception to multiple-structure surcharges under the National Flood Insurance Program (NFIP)—which apply to properties with more than one insured building to reflect elevated flood risk—for covered small businesses or nonprofits. A covered entity is defined as a small business concern (as defined in 15 U.S.C. 632) or 501(c)(3) tax-exempt organization owning at least three structures on a single property. The Federal Emergency Management Agency (FEMA) Administrator may not impose surcharges on NFIP policies for more than two detached units or buildings on such a property if the owner certifies that forgone surcharge savings will fund flood mitigation on the property; the Administrator must issue rules for the certification process within one year of enactment.

This section amends the National Flood Insurance Act of 1968 (42 U.S.C. 4019) to establish a rebuttable presumption, for claims under the National Flood Insurance Program (NFIP) standard flood insurance policy, that physical damage to an insured structure's foundation or structural damage was not caused by earth movement if (1) the flood caused direct physical change to the structure and (2) the damage was not present before the flood, as certified by the policyholder. An insurer may rebut the presumption only with an engineering report, meeting standards issued by the FEMA Administrator, that demonstrates the damage was caused directly by earth movement unrelated to flood (i.e., not hydrostatic pressure, buoyancy, hydrodynamic force, scouring, or other flood causation). The Administrator must issue minimum standards for such reports (requiring state-licensed engineer signature and seal, and consistency with forensic engineering and insurance practices) within 90 days of enactment; require Write Your Own companies and the Administrator to retain and use policyholder-submitted pre-flood foundation documentation (e.g., photos, videos) in claims adjustment; and notify policyholders of this documentation option upon policy purchase or renewal. The presumption applies to claims with a loss date on or after 90 days following enactment and does not modify standard policy terms.

This section amends the National Flood Insurance Act of 1968 (42 U.S.C. 4012) to require the FEMA Administrator to offer an optional rider for flood insurance covering basements in pre-FIRM condominium buildings (i.e., those not constructed or substantially improved after the later of December 31, 1974, or the area's initial flood insurance rate map effective date) that serve as separate residential units; directs necessary regulatory amendments within 180 days of enactment; and requires a study and report to Congress within one year on flood insurance coverage consequences, including cost implications for property owners, of street-raising that converts at-grade areas to basements.

This section directs the FEMA Administrator to issue guidance, not later than one year after enactment, on reasonable actions flood insurance policyholders may take after a flood recedes to inspect and maintain their property and prevent damage from mold, mildew, moisture, or water, considering applicable laws, policy terms, best practices, remediation costs relative to property condition, and policyholder challenges; to regularly review and revise the guidance; and to distribute it annually at policy purchase or renewal. The section further limits exclusions from standard flood insurance policy coverage for such damage to only the degree that could have been avoided through inspection and maintenance, provided the property condition (including any failure to inspect or maintain) is not attributable to the policyholder due to denied access from government orders or unsafe conditions, circumstances where a reasonable person could not be expected to act, or particular challenges such as financial difficulties, health priorities, displacement, or contractor unavailability.

This section establishes an Independent Office for Policyholder Appeals within FEMA, to be created not later than 180 days after enactment, to provide non-adversarial review of National Flood Insurance Program (NFIP) claim denials submitted in writing within one year of denial. (As background, the NFIP enables purchase of flood insurance against losses from floods occurring in the U.S.) It requires exhaustion of this appeals process—including Office issuance of final decisions within 90 days of receiving all necessary information (with interest at the 3-year Treasury bill rate on successful claims delayed beyond that period)—before a policyholder may file a civil action in U.S. district court; directs the Office to publish final decisions online and share aggregated data with the Office of the Flood Insurance Advocate; and authorizes FEMA to implement via existing or new regulations. The section repeals the prior NFIP appeals process under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (effective 180 days after enactment, with pending appeals transferred to the new Office), makes conforming amendments to that Act's table of contents and section 204(a)(3), and revises the NFIP judicial review provision (42 U.S.C. 4072) to designate its existing text as subsection (a) and reference disallowances by the Administrator or fiscal agent.

This section establishes uniform penalty requirements for the National Flood Insurance Program's (NFIP) flood insurance pool and Write Your Own (WYO) companies—private insurers authorized to sell and service NFIP policies—upon an audit determination of failure to adjust claims per applicable standards. It (1) mandates that penalties for overpayments be no less severe than for underpayments; (2) prohibits penalties for overpayments that are not in bad faith and do not exceed 4% of the policy's coverage limit; and (3) requires the Government Accountability Office to report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services, not later than two years after enactment and triennially thereafter, on any penalties imposed under these provisions.

This section establishes requirements for the use and disclosure of technical assistance reports and claim documents under the National Flood Insurance Program (NFIP), which provides flood insurance administered by FEMA primarily through private Write Your Own (WYO) companies. Specifically, the section— (1) limits the NFIP Administrator's reliance, when adjusting claims, to final technical assistance reports (i.e., those prepared by engineers, surveyors, salvors, architects, or certified public accountants for claims adjusters) that comply with applicable state and federal professional licensure and conduct laws (new 42 U.S.C. 4019(g)); (2) requires the Administrator to provide policyholders, within one week of a written or online request, unredacted copies of claim files, adjuster documents (e.g., measurements, photos, notes), damage estimates, technical reports, proofs of loss, and denial documents (new 42 U.S.C. 4012A); requires WYO companies and servicing entities to notify claimants within 30 days that such documents are available upon request; and authorizes WYO companies and direct servicing agents to disclose technical assistance reports without further FEMA review; and (3) authorizes WYO companies and NFIP direct servicers to transmit final engineering reports (i.e., those based on on-site inspections, containing signed final conclusions) to policyholders without FEMA review or approval.

This section establishes authority for the FEMA Administrator to terminate, with 14 days' notice, any contract between a Write Your Own (WYO) company and a covered entity (i.e., attorney, law firm, consultant, or third-party company providing services to a WYO)—which participates in the National Flood Insurance Program (NFIP) cooperative to write and service standard flood insurance policies—if the covered entity engages in conduct detrimental to the NFIP. It requires an appeal process for terminated entities and prohibits early termination payouts, with the authority effective on enactment and applicable to contracts entered into on or after that date.

This section establishes deadlines for processing claims under policies for flood insurance made available through the National Flood Insurance Program (NFIP). It requires the FEMA Administrator to (1) make an initial determination on claim approval or disapproval, and notify the policyholder, not later than 60 days after receiving a proof of loss or comparable submission (extendable by 30 days under extraordinary circumstances, with criteria to be established by regulation); (2) pay approved claims as soon as possible after approval; and (3) toll the deadline during any period of communication with the policyholder to obtain additional information or develop the claim. If the deadline is not met, even after extension, the claim amount increases with interest accruing from the initial claim filing date. The requirements apply to NFIP claims made after the date of enactment.

This section establishes requirements for final engineering reports (i.e., engineering reports, surveys, or documents based on on-site inspections of insured property, containing final conclusions on engineering issues for flood insurance claims under the National Flood Insurance Program, and signed or sealed by the responsible engineer) prepared in connection with covered claims (i.e., claims for losses under NFIP policies). The section directs the FEMA Administrator to require that such reports (1) may not include alterations by, or at the request of, anyone other than the responsible person or be transmitted to any third party before delivery to the policyholder; and (2) must include a certification by the responsible person affirming no such alterations.

This section requires each Federal Emergency Management Agency (FEMA) regional office to (1) provide training to local floodplain managers, agents, and claim adjusters on responsibilities and procedures for substantial damage and substantial improvement determinations (i.e., assessments to determine if flood-damaged structures require elevated rebuilding under federal flood standards); (2) work with applicable state agencies to provide such training; and (3) verify that those individuals complete the training. The section further requires the FEMA Administrator, after a presidential major disaster declaration for a flood under the Stafford Act (42 U.S.C. 5170), to provide—if determined appropriate—refresher training for insurance claims adjusters on the disaster's unique circumstances and briefings for floodplain managers, agents, and claim adjusters on any atypical issues.

This section makes technical amendments to the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 by (1) updating a reference from "Director of the" to "Administrator of the" Federal Emergency Management Agency (FEMA) and inserting "4001" into a statutory citation in section 201, and (2) revising the table of contents. The section replaces section 207 with new continuing education requirements for insurance agents selling policies under the National Flood Insurance Program (NFIP, which enables purchase of flood insurance coverage against property damage from floods). Under the new requirements, each agent must complete a 3-hour course every two years—approved (subject to subsection (c)) by the insurance commissioner (or equivalent) of the agent's state of residence and focused on NFIP issues—or be prohibited from selling flood insurance policies or performing related duties until completion; multi-state agents must submit proof of completion to each licensing state's commissioner, which may reject an out-of-state course and require satisfaction of its standards.

This section deems a Write Your Own (WYO) company—private insurers authorized to issue and service National Flood Insurance Program (NFIP) policies—against which an action is brought under this provision to be an agency of the United States solely for purposes of attorney fee and expense awards to prevailing parties under the Equal Access to Justice Act (28 U.S.C. § 2412(d)). (Thus, NFIP claimants who prevail against WYOs in federal court may recover such fees and expenses from the United States.)

This section requires the FEMA Administrator, upon a flood insurance claimant's lawsuit under the National Flood Insurance Program (NFIP), to refer the matter to the Attorney General for representation by the Department of Justice (DOJ) of the Administrator or Write Your Own (WYO) company (i.e., private insurer participating in the NFIP). It further prohibits DOJ from seeking court dismissal of potentially meritorious claims based on the claimant's good faith errors or omissions in the proof of loss.

This section amends the National Flood Insurance Act of 1968 by (1) prohibiting the FEMA Administrator from conditioning payment of an undisputed claim under the National Flood Insurance Program (NFIP) on submission of a proof of loss form and instead authorizing acceptance of a signed report from an Administrator-hired insurance adjuster (unless signature is impracticable), with proof of loss required only if the policyholder refuses the paid amount; and (2) directing the Administrator to issue guidance on best practices for attorneys defending NFIP-related lawsuits in responding to unintentional errors in a policyholder's proof of loss. (Thus, the changes expedite payments for agreed-upon claims while preserving formal processes for disputes.)

This section establishes the Agent Advisory Council within the National Flood Insurance Program (NFIP)—administered by the Federal Emergency Management Agency (FEMA) to provide flood insurance to property owners in participating communities—to advise the FEMA Administrator on (1) improving policyholder customer experience, (2) training insurance agents who issue flood insurance policies, and (3) processing and handling claims for flood-damaged property. The Council comprises the Administrator or designee plus 11 appointed members representing specified entities (i.e., National Association of Insurance Commissioners, Independent Insurance Agents and Brokers of America, United Policyholders, FEMA's Emergency Management Institute and Flood Insurance Advocate, National Association of Professional Insurance Agents, homebuilders or land developers, real estate industry, and consumer protection groups), who must have relevant experience with policyholder contact, flood insurance applications, claims, and riverine or coastal policies; requires the Administrator to submit annual reports to designated congressional committees and the Office of Management and Budget summarizing Council recommendations and any deferred or unacted-upon items; and exempts the Council from the Federal Advisory Committee Act's two-year termination requirement (5 U.S.C. 1013).

This section establishes requirements for property flood hazard disclosures by sellers and lessors of improved real estate (i.e., written notices of the seller's or lessor's actual knowledge of prior flood damage or claims, repetitive or severe repetitive loss status, federal flood insurance obligations, wetland location, elevation certificates, disaster assistance, relative flood risk, and approximate flood insurance costs or contents coverage availability) as a condition for new National Flood Insurance Program (NFIP) coverage after September 30, 2024. It further amends the NFIP availability criteria (42 U.S.C. 4012(c)) by adding a third requirement—in addition to evidencing positive interest in flood insurance and adopting land use controls by December 31, 1971—that states or areas provide satisfactory assurance of adopting compliant disclosure requirements by October 1, 2024. (As background, the NFIP, administered by FEMA, offers flood insurance only in participating communities meeting federal standards; thus, this links continued program access to enhanced buyer and renter awareness of flood risks.)

This section establishes a 90-day grace period for National Flood Insurance Program (NFIP) policyholders to renew lapsed flood coverage at the same rate that would have applied had the policy been renewed prior to lapse, notwithstanding statutory lapse penalties. (Thus, policyholders avoid rate increases for renewals within 90 days of lapse.)