To amend the National Flood Insurance Act of 1968 to allow for the consideration of private flood insurance for the purposes of applying continuous coverage requirements, and for other purposes.
- Sponsor
- Rep. Castor, Kathy [D-FL-14]
- Committees
- Financial Services Committee (primary)
- Last action
- Dec 11, 2025
Bottom line
H.R. 6620 aims to remove a disincentive for property owners to utilize private flood insurance by ensuring continuous coverage is recognized regardless of whether the policy is from the NFIP or the private market.
What it actually does
This bill amends the National Flood Insurance Act of 1968 to ensure that periods of private flood insurance coverage are recognized as "continuous coverage" for the purposes of federal flood insurance requirements. Specifically, it mandates that the Administrator of the Federal Emergency Management Agency (FEMA) consider any period a property was continuously covered by a private flood insurance policy, used to satisfy mandatory purchase requirements, as a period of continuous coverage. This prevents property owners from losing benefits or facing higher premiums when transitioning between private and National Flood Insurance Program (NFIP) policies.
Proponents argue
Supporters argue that this bill will provide much-needed flexibility and fairness for property owners in flood-prone areas. By recognizing private flood insurance as continuous coverage, it encourages a more robust private market, potentially leading to more competitive rates and tailored coverage options. It removes a significant barrier that currently discourages homeowners from exploring private alternatives, ultimately strengthening the overall flood insurance ecosystem and reducing reliance on the NFIP.
Opponents contend
Critics might argue that while seemingly beneficial, this change could inadvertently weaken the NFIP by encouraging more policyholders, especially those with lower-risk properties, to leave the program for private options. This could leave the NFIP with a disproportionate share of high-risk properties, further exacerbating its financial challenges. Some may also raise concerns about the consistency and oversight of private policies compared to the standardized NFIP, potentially leading to consumer confusion or inadequate coverage in some cases.
The bill text is extremely short and straightforward, allowing for quick comprehension. The time given for analysis is more than sufficient to understand its implications.
Section 1
Recognition of Private Flood Insurance for Continuous Coverage
This provision amends Section 1308 of the National Flood Insurance Act of 1968. It explicitly directs the Administrator of FEMA to count any period during which a property was continuously covered by a private flood insurance policy, which satisfied federal mandatory flood insurance purchase requirements, as a period of continuous coverage. This ensures that homeowners who switch between the federal NFIP and private flood insurance do not lose their continuous coverage status, which is crucial for maintaining eligibility for certain rates or benefits.
Supporters argue
Supporters argue this provision is a common-sense reform that empowers consumers by giving them more choices in flood insurance without penalty. It fosters a healthier, more competitive insurance market, which can lead to better products and pricing. It also aligns federal policy with the growing availability and acceptance of private flood insurance.
Critics contend
Critics might contend that while promoting private markets, this provision could inadvertently destabilize the NFIP by encouraging healthier, lower-risk policies to migrate to the private sector. This could leave the NFIP with a more concentrated pool of high-risk properties, exacerbating its existing financial challenges and potentially requiring more taxpayer bailouts in the future.
Tradeoffs
The bill balances the desire to foster a competitive private flood insurance market and offer consumer choice against concerns about the financial stability and risk profile of the National Flood Insurance Program. It aims to provide flexibility for policyholders but could shift the burden of high-risk properties more heavily onto the federal program.