Sens. Menendez, Kennedy Introduce Bipartisan Bill to Protect Homeowners From Flood Insurance Fraud

WASHINGTON, June 22 -- Sen. Robert Menendez, D-New Jersey, issued the following news release:

U.S. Senators Bob Menendez (D-N.J.) and John Kennedy (R-La.) today introduced the National Flood Insurance Program Consultant Accountability Act of 2021. The bill would enhance the Federal Emergency Management Agency's (FEMA) ability to protect homeowners from parties found guilty of fraud that involved in National Flood Insurance Program (NFIP) property damage assessments.

"It's absolutely unacceptable that many of the same bad actors who preyed on Sandy survivors after the storm devastated New Jersey continue to work with the National Flood Insurance Program," said Sen. Menendez. "The current system makes it nearly impossible for the NFIP to fire engineering firms, lawyers, consultants and contractors who mishandle claims and defraud flood victims. I'm happy to work with Sen. Kennedy to right this wrong and increase accountability in the NFIP."

"Vultures who prey on suffering Louisianians after a natural disaster have no business working with the National Flood Insurance Program or receiving taxpayer money. I'm proud to work with Sen. Menendez to protect Louisiana families from falling victim to fraudsters in the wake of hard-hitting storms," said Sen. Kennedy.

The National Flood Insurance Program Consultant Accountability Act of 2021 would allow FEMA to terminate consultants, contractors, law firms, engineering firms and other third-parties involved in NFIP contracts if those parties deliberately mishandle claims in order to lower insurance reimbursements to homeowners following a disaster. Currently, FEMA can only fire individuals or entities that have a criminal conviction.

The text of the bill can be found here: https://menendez.senate.gov/imo/media/doc/national_flood_insurance_program_consultant_accountability_act_of_2021.pdf