Florida senators introduce Flood Insurance Relief Act

(The Center Square) – Florida U.S. Sens. Rick Scott and Ashley Moody introduced a bill on Thursday that would provide tax relief on flood insurance premiums.

The Flood Insurance Relief Act would provide a nonrefundable tax deduction on flood insurance premiums paid through the National Flood Insurance Program or through private insurers.

It's part of Scott's package to reform the flood insurance system, which includes a bill that would require the Federal Emergency Management Agency to make detailed historic claims, policy, and flood risk data available to the public and easily accessible without compromising private information.

He also sponsored a measure that would allow people leaving the federal program for a private policy to return to the program without penalty and another bill that would end the ban on write-your-own policy insurers from selling private flood insurance policies.

The final bill in Scott's flood insurance reform package would allow policyholders to establish a tax-free savings account for home mitigation and disaster recovery expenses.

"Floridians know well that flood insurance can be a crucial but costly asset, and it is unacceptable that many are left struggling to find flood insurance coverage they can afford" Scott said in a release. "Families shouldn't have to choose between protecting their homes and putting food on the table. I've been working on several bills to fix the broken NFIP system and encourage private-sector participation to allow for a more robust, affordable flood insurance market, but we must do more to help families ASAP.

"My Flood Insurance Relief Act offers a practical way to directly ease the financial burden of flood insurance for families by allowing a tax deduction on their premiums, whether through the NFIP or the private market."

Rep. Byron Donalds, R-Fla., running for governor in 2026 and representing the 19th Congressional District, is sponsoring the companion bill in the House of Representatives.

"For far too long, the rising cost of flood insurance has crushed hardworking Floridians," Donalds said in a release. "This is unacceptable, this must change, and this critical issue must be addressed to ensure our economy works for all Americans. The time for action is now, and I'm proud to join Senator Rick Scott in introducing the Flood Insurance Relief Act to provide this overdue relief to policyholders across our Southwest Florida community, the Sunshine State, and the nation."

Congress established the National Flood Insurance Program in 1968 and it serves more than 4.6 million active policies in 22,600 communities. The coverage limits are $250,000 for buildings and $100,000 for contents; $100,000 for contents for renters and $500,000 each for businesses. In 2023, the NFIP paid more than 21,000 claims with $1 billion in claim payments. These claims are paid regardless of a presidential disaster declaration.