H.R. 5500 — National Flood Insurance Program Administrative Reform Act of 2025

This section designates the Act as the “National Flood Insurance Program Administrative Reform Act of 2025” and sets forth the table of contents.

This section establishes a voluntary pilot program administered by the FEMA Administrator for Write Your Own (WYO) companies—private insurers authorized under the National Flood Insurance Program (NFIP) to issue and service federally backed flood policies—to investigate preexisting structural conditions in insured and potentially insured properties that could result in flood claim denials. Under the program, participating WYO companies must (1) offer policyholders, upon request, an initial investigation using common methods and, if needed, an on-site inspection; (2) report findings to the policyholder and Administrator; and (3) impose a surcharge on covered policies, as determined by the Administrator, to cover and reimburse investigation costs. The Administrator must submit an interim report on the program's operation to the House Financial Services Committee and Senate Banking Committee by December 31, 2027; no covered policies may be provided after December 31, 2028; and a final report with findings and recommendations is due by March 31, 2029. (Thus, the program enables upfront identification of coverage-risk conditions to potentially reduce future claim disputes.)

This section establishes prohibitions against knowingly making false, fictitious, or fraudulent statements or submissions in connection with claims under the National Flood Insurance Program (NFIP), including (1) forging engineering, claims adjustment, or technical assistance reports; (2) making materially false statements in such reports that result in wrongful denial or substantial payment error of flood insurance coverage; and (3) submitting fraudulent claims that result in wrongful payments. It defines "knowingly" as having actual awareness of the prohibitions and acting deliberately; requires exhaustion of administrative remedies prior to legal action; directs the Attorney General to refer violators to relevant state licensing agencies; and clarifies that the prohibitions neither limit federal actions under other statutes (e.g., False Claims Act) nor create new private rights of action.

This section establishes an appeals process for holders of flood insurance policies under the National Flood Insurance Program (NFIP) to challenge the disallowance, in whole or in part, of covered loss claims. (1) The Federal Emergency Management Agency (FEMA) Administrator must issue a written decision within 120 days of acknowledging an appeal request—explaining whether the initial decision is upheld, modified, or overturned and directing Write Your Own (WYO) companies, as appropriate, to re-inspect, re-adjust, or pay—with possible 30-day extensions for extraordinary circumstances established by regulation; (2) requires exhaustion of this administrative remedy before legal action, without making FEMA a party to the insurance contract or creating new rights or remedies; (3) tolls the one-year statute of limitations under NFIP section 1341 (42 U.S.C. 4072) from appeal acknowledgment to final decision; and (4) repeals the prior NFIP appeals process under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note).

This section establishes a 120-day deadline (extendable by successive 30-day periods for demonstrated extraordinary circumstances, with criteria to be set by regulation) for the FEMA Administrator to make an initial determination on approving or disapproving any claim for damage to or loss of property under the National Flood Insurance Program (NFIP), with notification to the insured and payment of approved claims as soon as possible thereafter. The requirement applies to NFIP claims pending on the date of enactment and any filed after that date. (It also makes a conforming change to subsection (a) subjecting claim adjustment regulations to other provisions of the section.)

This section establishes oversight of litigation arising from flood insurance policies sold by Write Your Own (WYO) companies under the National Flood Insurance Program (NFIP)—a program administered by the Federal Emergency Management Agency (FEMA) in which private insurers issue and service policies with FEMA reimbursing claims and expenses. Specifically, it requires the FEMA Administrator to (1) monitor WYO litigation to ensure expenses are reasonable, appropriate, and cost-effective and that WYOs comply with agency guidance; (2) deny reimbursement for unreasonable, excessive, or noncompliant expenses; and (3) authorize joint defense agreements permitting information sharing among WYOs, FEMA, the Department of Justice, and counsel to coordinate litigation and enable oversight (with such agreements includable in existing WYO arrangements and subject to agency rules). The FEMA Administrator must implement the joint defense provision within 12 months of enactment.

This section prohibits the Administrator from newly employing, in connection with the National Flood Insurance Program, any attorney who has been suspended or disbarred by any court, bar, or federal or state agency to which the individual was previously admitted to practice.

This section amends the National Flood Insurance Act of 1968 to regulate the use and disclosure of technical assistance reports (i.e., reports by engineers, surveyors, salvors, architects, or certified public accountants to assist NFIP claims adjusters) in adjusting claims under the National Flood Insurance Program (NFIP).(1) Limits the FEMA Administrator's reliance on such reports to those that are final and prepared in compliance with applicable state and federal professional licensure and conduct laws; and (2) requires the Administrator, upon policyholder request, to disclose any relied-upon technical assistance report in true, complete, and unredacted form (in addition to Privacy Act rights), with direct disclosure authority for Write Your Own (WYO) companies and direct servicing agents.

This section requires each standard flood insurance policy under the National Flood Insurance Program (NFIP) to include a FEMA-produced disclosure sheet in plain language detailing the definition of a "flood," covered flood forces (e.g., overflow of inland or tidal waters, unusual and rapid surface water accumulation or runoff, mudflow), exclusions (e.g., basement improvements such as finished walls, floors, and ceilings; personal property in basements unless optional coverage is purchased), other non-covered losses, the primacy of the policy and endorsements over the disclosure sheet, and contact information for questions. It further requires each NFIP policy application to include an acknowledgment sheet on which the policyholder affirms receipt of the disclosure sheet, accepts or declines personal property and other optional coverages, acknowledges the primacy of the policy and endorsements, and confirms review of a coverage and cost summary (e.g., declarations page). This section includes a rule of construction preserving underlying policy coverage terms and authorizing Write Your Own (WYO) companies to issue policies without the policyholder's affirmative acknowledgment; and repeals prior NFIP disclosure requirements enacted by sections 202 and 203 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004.

This section authorizes crediting to the National Flood Insurance Fund (NFIF) of amounts collected pursuant to the National Flood Insurance Reserve Fund provision (i.e., surcharges on National Flood Insurance Program policies), making such amounts available for the purpose described in NFIF statute subsection (d)(1). (As background, the NFIF finances claims payments, reinsurance, and operations of the National Flood Insurance Program administered by FEMA; the Reserve Fund builds financial reserves to support program obligations.)

This section requires the FEMA Administrator to ensure that the Flood Insurance Advocate—who advocates for fair treatment of National Flood Insurance Program (NFIP) policyholders and property owners on flood hazard mapping, risk identification, and mitigation—has sufficient staff to carry out all duties under the section. It further directs the Administrator to achieve full compliance within 180 days of enactment.

This section revises the flood insurance advisory committee—now designated the Federal Flood Insurance Advisory Committee—under the National Flood Insurance Program (NFIP; i.e., the federal program administered by the Federal Emergency Management Agency that enables property owners in participating communities to purchase flood insurance, including through private Write Your Own partners). (1) It specifies membership as the FEMA Administrator (or designee) plus 11 appointees, including three Write Your Own representatives, one state/territorial/tribal insurance regulator, one risk transfer specialist, one catastrophic risk actuary, two flood insurance agents or brokers (one with low-income community expertise), one claims specialist, one consumer advocate, and one insurance expert from academia (previously up to 15 members selected broadly from the insurance industry, state/local governments, lending institutions, homebuilding industry, and general public), with a requirement for geographic diversity from high-risk flood areas; (2) it directs the committee to review and recommend on specified NFIP insurance matters (e.g., ratemaking, risk assessment, claims practices, Write Your Own partnership) submitted by the Administrator; (3) it requires members to elect a chairperson, eliminates per diem compensation (previously up to $100 per day), and limits reimbursement to federal travel rates; (4) it establishes meeting requirements (at least twice annually), FEMA staff support, hearing powers, and exceptions to the Federal Advisory Committee Act to enable confidential discussions of non-public NFIP information (with public summaries); and (5) it requires the Administrator to report annually to specified congressional committees and the Office of Management and Budget on committee recommendations, agency actions, and any deferred recommendations. (Thus, the revised committee provides focused insurance expertise and greater congressional oversight of NFIP operations.)

This section directs the Federal entities for lending regulation (i.e., Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Comptroller of the Currency, National Credit Union Administration, and Farm Credit Administration), in consultation with the FEMA Administrator, to update and reissue the document entitled “Interagency Questions and Answers Regarding Flood Insurance” within 12 months of enactment and biennially thereafter. (The guidance assists regulated lenders in complying with flood insurance purchase requirements for properties in special flood hazard areas receiving federally regulated financial assistance.)

This section directs the Comptroller General of the United States to conduct a study of policies and practices for adjusting claims for losses under flood insurance coverage provided through the National Flood Insurance Program (NFIP), including (1) a comparison with claims adjustment under other insurance coverages, (2) an assessment of adjustment quality and the effects of such policies and practices on quality, (3) identification of incentives affecting adjustment speed, and (4) identification of effects on insureds submitting claims. The Comptroller General must submit a report on the study's findings and conclusions to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs within 18 months of enactment.

This section directs the Comptroller General of the United States to conduct a study of the treatment under the National Flood Insurance Program (NFIP) of earth movement and subsidence, including earth movement and subsidence caused by flooding. The study must (1) identify and analyze the effects of such treatment on the NFIP and its insureds; (2) assess the availability and affordability of private market coverage for earth movement and subsidence caused by flooding; (3) assess the effects on the NFIP of covering earth movement and subsidence caused by flooding; and (4) project the increased premiums required to make coverage for earth movement losses actuarially sound without fiscal detriment to the NFIP. The Comptroller General must submit a report on the study's findings to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs within 18 months of enactment.

This section adds definitions to section 1370(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4121(a)) for "(16) Write Your Own Program," meaning FEMA's arrangement with private property insurers to sell, under their own business lines, and service flood insurance contracts under the National Flood Insurance Program (NFIP), and "(17) Write Your Own company," meaning a participating private property insurer. It revises the definition in section 100202(a)(5) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004(a)(5)) to cross-reference those terms (previously, "Write Your Own" meant a cooperative undertaking between the insurance industry and the Federal Insurance Administration to write and service standard flood insurance policies).