Federal flood insurance now covers shoreline erosion demolition and relocation
H.R. 3161 — Preventing Environmental Hazards Act of 2025 · Filed by Gregory Murphy (R-NC) · 4 cosponsors · Introduced May 1, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill expands the National Flood Insurance Program to cover demolition or relocation costs for homes on eroding shorelines that are condemned or deemed unsafe by state/local authorities. Homeowners can receive up to 40% of the structure's value upfront for demolition, or up to 40% for relocation costs; if demolition occurs within 6 months, they receive the remaining 60% (capped at actual demolition cost). Total payouts are capped at $250,000 per structure. After a payout, no further flood insurance or disaster relief is available for that property.
Why we flagged it
The bill's core mechanism is a straightforward expansion of federal flood insurance to cover demolition and relocation costs for structures threatened by shoreline erosion. It is a public-safety and property-protection measure, not a deregulation, tax carve-out, or commemorative provision.
What the text implies
- The $250,000 cap may be insufficient for relocation costs in high-value coastal markets, potentially leaving homeowners with significant out-of-pocket expenses despite federal assistance.
- The permanent termination of coverage and disaster relief for the property after payout may discourage claims, as homeowners lose all future protection; this could suppress uptake of the program.
The full analysis lists 5 implications of this text.
Who stands to gain
homeowners with flood-insured properties on eroding shorelines; demolition and relocation contractors; National Flood Insurance Program (federal budget impact)