To amend the National Flood Insurance Act of 1968 to allow for the consideration of private flood insurance for the purposes of applying continuous coverage requirements, and for other purposes.
- Bill Number
- H.R. 6620
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-12-11: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-01-08T19:43:39Z
AI-Generated Summary
Purpose
This bill, H.R. 6620, aims to update the National Flood Insurance Act of 1968 by allowing private flood insurance policies to count toward "continuous coverage requirements." These requirements ensure that properties in flood-prone areas maintain uninterrupted flood insurance to qualify for federal benefits, such as mortgages or disaster aid. The goal is to give property owners more flexibility in choosing insurance providers while still meeting federal mandates.
Key Provisions
- Amendment to Section 1308: Adds a new subsection (n) to the National Flood Insurance Act (42 U.S.C. 4015).
- Definition of Continuous Coverage: For any federal, state, or local rule requiring ongoing flood insurance (including under Section 1307(g)(1) of the Act), the Federal Emergency Management Agency (FEMA) Administrator must treat time periods where a property was covered by either a National Flood Insurance Program (NFIP) policy or a private flood insurance policy as "continuous coverage."
- Eligibility Criterion: The private policy must have met the standards of Section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(a)), which generally requires flood insurance for properties in designated flood zones to secure federally backed loans.
Significant Changes to Existing Law
- Inclusion of Private Insurance: Prior to this amendment, continuous coverage requirements under the National Flood Insurance Act primarily focused on policies from the NFIP (a government-run program). This bill expands the definition to explicitly include qualifying private market policies, reducing the exclusivity of NFIP coverage.
- Broad Application: The change applies to all statutory, regulatory, or administrative continuous coverage rules, not just specific NFIP provisions, making it a comprehensive update.
Potential Impacts
- On Government Agencies: FEMA (as the NFIP administrator) may see reduced administrative burden in verifying coverage, as it can now accept private policies. This could encourage more private sector involvement, potentially lowering the NFIP's financial load, which has faced deficits from claims.
- On Citizens: Property owners in high-risk flood areas gain more options for insurance, possibly leading to competitive pricing and broader availability. It simplifies compliance for homeowners with mortgages, avoiding lapses that could block federal aid or refinancing.
- On International Relations: No direct impacts, as this is a domestic insurance policy focused on U.S. flood risks and federal lending.
Main Stakeholders Affected
- Property Owners and Homebuyers: Especially those in FEMA-designated Special Flood Hazard Areas (high-risk zones), who must carry flood insurance for federally regulated mortgages.
- Insurance Providers: Private insurers benefit from expanded market access; NFIP (operated by FEMA) may face increased competition.
- Lenders and Financial Institutions: Banks and mortgage companies, which enforce flood insurance requirements to protect against loan defaults in flood events.
- Federal Government: Primarily FEMA, which oversees NFIP and could experience shifts in program enrollment and funding.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens the integration of private insurance into federal flood risk management, aligning with prior laws like the Flood Disaster Protection Act. It may reduce litigation over coverage gaps by clarifying what qualifies as continuous protection, but could require FEMA to update regulations for implementation.
- Constitutional Implications: None significant; the bill operates within Congress's authority over interstate commerce and federal spending (e.g., mortgage insurance), without infringing on states' rights or individual liberties.
- Political Implications: Promotes market-based solutions to flood insurance challenges, potentially appealing to those favoring reduced government involvement in insurance. Introduced by bipartisan sponsors (Democrat from Florida and Republican), it reflects regional priorities in flood-vulnerable states like Florida, amid ongoing debates over NFIP sustainability and rising climate-related flood risks.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Salazar, Maria Elvira [R-FL-27]
Recent Actions
- 2025-12-11: Referred to the House Committee on Financial Services.
- 2025-12-11: Introduced in House
- 2025-12-11: Introduced in House
Bill Versions
- To amend the National Flood Insurance Act of 1968 to allow for the consideration of private flood insurance for the purposes of applying continuous coverage requirements, and for other purposes. — issued 2025-12-11 — PDF (2 pages)