Federal law requires property owners with federally insured mortgages to buy and maintain a minimum amount of flood insurance coverage for properties located in Special Flood Hazard Areas. Today, property owners may not satisfy this “continuous coverage” requirement with some private market alternatives to the National Flood Insurance Program (NFIP). If a policyholder leaves the NFIP for one of these private market options, the owner could jeopardize their grandfathered status and face substantial rate increases should they later return to the NFIP.

Background

• H.R. 2901 clarifies that property owners may satisfy the mandatory purchase requirement with either an NFIP policy or private market coverage that meets state law. 
• The legislation ensures that consumers can move freely between the NFIP and private coverage without penalty.
• The legislation reserves the NFIP as a viable choice, keeping homeowners from becoming stranded should private insurance options change or become more expensive after major floods.

What's in play

H.R. 2901, the Flood Insurance Market Parity and Modernization Act, makes technical amendments to the Flood Disaster Protection Act of 1973.

Bill statu 

H.R. 2901 passed the House and is waiting for action in the Senate.

The WRA engages in advocacy on behalf of REALTORS^® and property owners through a variety of programs including the REALTORS^® Political Action Committee and the Wisconsin Homeowners Alliance.