Bill to Ease Restrictions on Private Flood Carriers Introduced

August 2, 2021

Lawmakers have introduced bipartisan legislation to make it easier for private insurers to compete in the U.S. flood insurance market by allowing private flood insurance to satisfy the National Flood Insurance Program’s continuous coverage requirements. The Continuous Coverage for Flood Insurance Act (H.R. 4699) is sponsored by Reps. Kathy Castor (D-FL), and Blaine Luetkemeyer (R-MO).


The bill would address lapses in previous NFIP reform efforts that specifically required federal lending institutions to accept certain non-NFIP insurance policies to satisfy the NFIP’s mandatory purchase requirement. New rules regarding the acceptance of non-NFIP insurance took effect on July 1, 2019, the lawmakers said.

“American consumers should have the right to decide what flood insurance policy best fits their specific needs, whether it be an NFIP or private sector policy. Penalizing policyholders who have maintained continuous flood coverage just because they explored options in the private market is nonsensical,” said Luetkemeyer. Similar legislation to fix the continuous coverage problem has unsuccessfully been proposed in previous sessions of Congress.

A bill allowing private flood insurance to satisfy the National Flood Insurance Program’s continuous coverage requirements. has been introduced in the U.S. House. The Continuous Coverage for Flood Insurance Act (H.R. 4699) is sponsored by Reps. Kathy Castor (D-FL), and Blaine Luetkemeyer (R-MO). The bill would address lapses in previous NFIP reform efforts that specifically required federal lending institutions to accept certain non-NFIP insurance policies to satisfy the NFIP’s mandatory purchase requirement. New rules regarding the acceptance of non-NFIP insurance took effect on July 1, 2019, the lawmakers said. “American consumers should have the right to decide what flood insurance policy best fits their specific needs, whether it be an NFIP or private sector policy. Penalizing policyholders who have maintained continuous flood coverage just because they explored options in the private market is nonsensical,” said Luetkemeyer. Similar legislation to fix the continuous coverage problem has unsuccessfully been proposed in previous sessions of Congress.