"Families, homeowners, and small business owners across
"American consumers should have the right to decide what flood insurance policy best fits their specific needs, whether it be an NFIP or private sector policy. Penalizing policyholders who have maintained continuous flood coverage just because they explored options in the private market is nonsensical and only deters families from finding more affordable options," said
Many consumers are unable to take advantage of these potentially beneficial and cost-effective non-NFIP insurance policies. Currently, the NFIP requires continuous coverage to be eligible for grandfathered rates, but only counts the time in an NFIP policy. If a policyholder chooses to leave the program and return later, the NFIP will charge the full, non-grandfathered rate - even if the policyholder decides to obtain a non-NFIP insurance policy sanctioned by the new rule. The prospect of higher insurance rates is not only a deterrent to the marketplace but also a barrier to more affordable flood insurance.
Supporting organizations include:
Supporting quotes for the legislation can be found here: https://docs.google.com/document/d/1jKtKBrQHSp6DVypAthixTD76N1vEP-1UNfPKyFXIsL0/edit?usp=sharing