Senator Rick Scott unveiled a comprehensive legislative package this week aimed at reforming the National Flood Insurance Program (NFIP), promising to reduce costs for families, stimulate the private insurance market, and improve service for Floridians.
The announcement comes as hurricane season gets underway, putting flood insurance at the forefront of many residents’ minds.
Senator Scott’s package consists of three key bills: the Flood Insurance Transparency Act, the Flood Insurance Consumer Choice Act, and the Removing Barriers to Private Flood Insurance Act. This initiative directly addresses long-standing grievances, particularly in Florida, where policyholders have historically paid more in premiums than they have received in claims.
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“With hurricane season underway, families in Florida and across the nation have flood insurance top of mind and are seeking access to affordable, reliable coverage when they need it most,” said Senator Rick Scott. He criticized the NFIP as “wildly inefficient, buried in debt, and [pushing] unaffordable rate hikes that have been unfair to Florida’s taxpayers,” calling it a “textbook case of what happens when big government tries to take over an industry – complete failure.”
The Senator expressed optimism that his legislative proposals would inject much-needed reform into the system. “My legislative package works to reform the NFIP by increasing transparency in the system and encouraging more private-sector participation, allowing for a robust and affordable flood insurance market that gives homeowners in Florida choices and flexibility with their flood insurance plans,” Scott stated. “I look forward to working with my colleagues to pass these critical reforms to make government work better for families.”
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The Flood Insurance Transparency Act aims to increase accountability by mandating the Federal Emergency Management Agency (FEMA) to make detailed historic claims, policy, and flood risk data publicly and easily accessible. Crucially, this will be done while ensuring personal information remains protected.
The Flood Insurance Consumer Choice Act seeks to empower policyholders by amending the NFIP’s ‘Continuous Coverage’ requirement. This change would allow NFIP policyholders who opt for a private flood insurance policy to return to the NFIP without incurring any penalties, providing greater flexibility and encouraging competition.
Finally, the Removing Barriers to Private Flood Insurance Act directly tackles restrictions on private market participation. This bill proposes to permanently eliminate the NFIP’s “Write Your Own” (WYO) company non-compete clause. This clause currently prevents WYO companies, which administer NFIP policies, from also selling private flood insurance products that directly compete with NFIP offerings. Its removal is expected to foster a more competitive and diverse flood insurance market.
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These legislative proposals represent a significant effort to overhaul the NFIP, with a strong focus on addressing the concerns of Florida residents who have long felt the burden of a system they perceive as inequitable and inefficient. The Senator’s office hopes these reforms will lead to more affordable and accessible flood insurance options for families nationwide.
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