Credit: Yurii Kibalnik/Adobe Stock
A new bill would allow homeowners to move more easily between private flood insurance coverage and National Flood Insurance Program policies, without enduring sticker shock.
Introduced by U.S. Reps. Kathy Castor (D-Fla.) and Maria Salazar (R-Fla.), the Continuous Coverage for Flood Insurance Act would allow policyholders to choose a qualifying private flood insurance plan without losing grandfathered rates under NFIP should they return to the federal program down the road.
The bill targets the NFIP’s continuous coverage requirement, which stipulates that homeowners must maintain uninterrupted flood insurance coverage in order to keep lower, subsidized rates.
Currently, only NFIP policies count as continuous coverage. If homeowners leave the program for private coverage and then come back, they might see a jump in premium.
Allowing more policies to count toward continuous coverage would give households more options when it comes to flood insurance.
The bill “empowers consumers with more options by allowing access to private flood insurance, without penalty,” Castor said in a statement. In coastal communities, “healthy competition can lower costs, expand the insurance pool and help bring down flood insurance rates.”
Salazar said changing the requirement could also lower the government’s risk exposure.
“By opening the door to greater private-sector involvement, the Continuous Coverage for Flood Insurance Act will lower the burden on US taxpayers and provide stronger, more reliable protection,” she said in a statement.
Photo credit: Yurii Kibalnik/Adobe Stock
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