New Bill Seeks to Lower Flood Insurance Costs by Expanding Private Market Access

U.S. Representatives Maria Elvira Salazar and Kathy Castor reintroduced the Continuous Coverage for Flood Insurance Act aimed at reducing flood insurance costs by allowing homeowners to maintain coverage outside the National Flood Insurance Program (NFIP). This legislative effort responds to rising flood insurance premiums and limited affordable options for homeowners across the U.S., particularly in flood-prone areas like Florida. The bill promotes increased private-sector involvement in the flood insurance market, which could lower costs, expand the insurance pool, and alleviate taxpayer burdens. The NFIP currently requires continuous coverage within its program for eligibility to grandfathered, lower rates. However, if policyholders switch to non-NFIP flood insurance and then return, they lose their grandfathered rates and face higher premiums, creating a disincentive to explore potentially more affordable private insurance options. Originating from reforms under the 2012 Biggert-Waters Flood Insurance Reform Act, which allowed acceptance of certain non-NFIP policies for mandatory purchase requirements, this legislation seeks to close gaps in continuous coverage recognition and promote market competition. The bill underscores bipartisan efforts to boost consumer choice, financial stability, and competitive pricing in flood insurance, benefiting homeowners and businesses in coastal and flood-impacted communities.