U.S. Representatives Maria Elvira Salazar (FL-27) and Kathy Castor (FL-14) have reintroduced the Continuous Coverage for Flood Insurance Act, a bipartisan bill aimed at reducing flood insurance costs by allowing homeowners to maintain coverage outside of the National Flood Insurance Program (NFIP).
The legislation comes as many homeowners are experiencing higher premiums and fewer affordable options for flood insurance.
“Now more than ever, Miami residents and Americans nationwide deserve real choice and affordable coverage in the flood-insurance market,” said Rep. Maria Salazar. “By opening the door to greater private-sector involvement, the Continuous Coverage for Flood Insurance Act will lower the burden on U.S. taxpayers and provide stronger, more reliable protection.”
Rep. Kathy Castor also commented on the bill’s potential impact: “Families, homeowners and small businesses across Florida – including across the recovering Tampa Bay area – deserve real financial stability, peace of mind and clarity when it comes to flood insurance. Our bipartisan legislation empowers consumers with more options by allowing access to private flood insurance, without penalty. For coastal communities like Tampa Bay, healthy competition can lower costs, expand the insurance pool and help bring down flood insurance rates. I’m pleased to work with my fellow Floridian, Rep. Maria Salazar, to ease cost burdens on hardworking Floridians and expand consumer choice in continuous flood insurance coverage.”
In 2012, Congress passed the Biggert-Waters Flood Insurance Reform Act to update NFIP policies. This law required federal lenders to accept certain non-NFIP policies that meet specific standards as valid alternatives for mandatory purchase requirements under NFIP guidelines. A final rule implementing these changes took effect in July 2019.
Despite these reforms, many policyholders still face obstacles in accessing non-NFIP policies that could be less expensive or better suited to their needs. The current system only counts time spent in an NFIP policy toward eligibility for grandfathered rates; if a homeowner switches from an NFIP policy to a compliant private one but later returns to NFIP coverage, they lose access to those preferred rates and must pay higher premiums.
Supporters of the new bill argue that this restriction discourages participation in alternative markets and keeps prices high for consumers seeking affordable flood protection.
A full text of the proposed legislation is available online.