• Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • Legislative Updates / News / Podcasts
  • Contact
  • Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • Legislative Updates / News / Podcasts
  • Contact
  • MENU

Congress Takes Positive Step on Flood Insurance

SHARE THIS

New bill eases homeowners’ penalty

The U.S. House of Representatives is trying once again to fix a major roadblock that has prevented some homeowners from shopping around for private flood insurance as an alternative to their National Flood Insurance Program (NFIP) policies.  It allows private carriers to better compete by satisfying the NFIP’s continuous coverage requirements.

H.R. 4699, the Continuous Coverage for Flood Insurance Act, is sponsored by Rep. Kathy Castor (D-FL) and Blaine Luetkemeyer (R-MO).  It would prevent FEMA from penalizing homeowners who elect to purchase flood insurance outside of the NFIP. 

“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 Rep. Luetkemeyer, in a press release.

This bill would fix a long-standing problem that we’ve written about many times in the pages of this newsletter.  Currently, when a homeowner gives up their NFIP coverage for a private market policy and later may decide to switch-back to an NFIP policy, the NFIP penalizes them by re-setting their previously grandfathered rate to the full NFIP market rate.  The bill would preserve that grandfathered rate.  It specifically addresses lapses in new rules that took effect in July 2019 that allowed federal lending institutions to accept private insurance to satisfy NFIP mandatory purchase requirements for properties in high-risk flood zones.  As Rep. Luetkemeyer further commented, “Competition can bring lower prices and broaden the insurance pool to help reduce flood insurance rates that threaten hardworking families and small businesses.”  We say Bravo!

There are remaining obstacles in allowing transfer of needed flood protection from the NFIP to the private marketplace.  They include the current rule where homeowners do not get a refund of their unearned NFIP premium if they switch policies before the end of their annual term.  LMA will continue to advocate for elimination of this and other burdensome bureaucratic rules.

For more information and resources on Florida’s thriving private flood insurance market, check out our LMA Flood Insurance & Resilience webpage.  

LMA Newsletter of 8-9-21

SHARE THIS

Tags: Continuous Coverage for Flood Insurance Act, National Flood Insurance Program, Private flood insurance, Rep. Blaine Luetkemeyer, Rep. Kathy Castor

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“I have followed your weekly newsletter and podcasts and now have a full appreciation for what you bring to this industry.  You are an inspiring force, plain and simple.  I wanted you to know that you make a difference.  Thank you for all you do!”

Jeffrey Karam, CPCU
Bradenton, FL

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Just wanted to say that I thoroughly love your newsletter. It’s is always informative and insightful to the ins and outs of our industry.  You are an inspiration and an important asset in the insurance world.  Keep up the great work!” 

Cynthia Scott, President
University Insurance Group
Davie, FL

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

Jennifer Tedesco, Esq., Claims Director
Pharos Claims Services
Orlando, FL

“Just a quick note to let you know how much I have appreciated your newsletter over the years and the assistance they offer for those in the field of claims. We depend on the information more than you will ever know!”

Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

“Lisa Miller is a true champion for the insurance industry, with her regular updates! We appreciate all you do and keeping us up to date on priority issues!”

Gillian Lloyd, Account Executive
Zywave
Milwaukee, WI

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

“Your newsletter is fabulous!  I greatly appreciate the topics you expose, so that insurance professionals like myself can keep up with the latest events that affect the public we serve and ourselves.”

Cynthia Hoehn, Independent Property & Casualty Personal Lines insurance agent
Clermont, FL

GET THE LATEST UPDATES IN YOUR INBOX FOR FREE!

SUBSCRIBE NOW

READ THE LATEST LMA NEWSLETTER ONLINE NOW

READ NOW

331 N. Monroe Street
Tallahassee, FL 32301
(850) 222-1041
[email protected]

*DBE certified through affiliate Lisa Miller Consultants

© Copyright 2008 - 2025
Lisa Miller Associates
All Rights Reserved
Managed by SiteBolts