National Flood Insurance Program Reauthorization and Reform Act of 2025

# Summary of National Flood Insurance Program Reform Bill This comprehensive legislation proposes significant reforms to the National Flood Insurance Program (NFIP) with a focus on policyholder protections, program transparency, financial solvency, and flood mitigation. ## Key Themes 1. **Policyholder Protections & Transparency** - Establishes an Independent Office for Policyholder Appeals with clear deadlines (90 days for final decisions) - Requires disclosure of all claim documents to policyholders within one week of request - Prohibits manipulation of engineer reports and requires final engineering reports to be transmitted directly to policyholders - Creates a "grace period" for policyholders renewing lapsed coverage (90 days) 2. **Transparency & Data Access** - Mandates public release of premium calculation formulas - Requires a public tool for estimating premium rates under Risk Rating 2.0 - Requires annual publication of premium rate distributions by state, county, and zip code - Studies feasibility of licensing historical claims data to third parties 3. **Mitigation Focus** - Requires consideration of mitigation projects (including Army Corps of Engineers projects) in premium calculations - Creates incentives for policyholders to accept mitigation offers (refusal increases premiums by 25% annually) - Provides clarification on coverage for pre-FIRM condominium basements - Establishes a "rebuttable presumption" for foundation/structural damage caused by flood 4. **Financial Solvency** - Provides 5-year forbearance on interest payments for NFIP debt - Caps Write Your Own company compensation at 22.46% of premiums - Requires transparency on third-party service provider costs - Creates a "National Flood Mitigation Fund" to use saved interest payments 5. **Claims Process Improvements** - Sets 60-day deadline for initial claim determination (with 30-day extension for extraordinary circumstances) - Requires clear documentation of foundation conditions before flood events - Establishes standards for engineering reports used in claims adjustment - Creates an Agent Advisory Council to provide recommendations on policyholder experience The bill aims to create a more sustainable, transparent, and fair flood insurance program while encouraging flood mitigation and improving the claims experience for policyholders.