Government flood data now for sale to private insurers—at your expense

What it does

This bill creates a data-sharing program allowing the National Flood Insurance Program (NFIP) to disclose flood claims and policy information to private insurance companies under signed agreements. Private insurers can use this data to set premiums and adjust claims, but not for marketing. The bill also requires NFIP to provide flood history information to property buyers, renters, and owners upon request, and allows NFIP to charge private insurers fees for access while providing the information free to property owners.

Why we flagged it

The bill's core mechanism is a two-way data exchange: NFIP discloses flood claims and policy data to private insurers (who pay fees), while also mandating disclosure of flood history to property owners (free). The private-insurer access is the operative beneficiary provision; the property-owner disclosure is a transparency mandate.

What the text implies

• Private insurers gain access to NFIP's complete flood claims database at subsidized rates, enabling them to identify and avoid high-risk properties—a form of adverse selection that could degrade NFIP's risk pool and increase premiums for remaining policyholders.
• The bill defines 'insurance company' by reference to section 102(7) of the Flood Disaster Protection Act of 1973, but that definition is not provided in the text; the actual scope of eligible private insurers is opaque.
• NFIP's authority to charge 'any other terms and conditions the Administrator determines are necessary and appropriate' is open-ended, creating regulatory discretion that could be used to favor certain insurers or impose minimal restrictions.
• Property owners requesting their own flood history receive it free, but the bill does not require NFIP to disclose to owners what data has been shared with private insurers or how that data is being used to set premiums against them.
• The 'routine use' privacy carve-out (treating data sharing as a routine use under the Privacy Act) may limit property owners' ability to challenge or control how their flood claims data is used by private insurers.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Property buyers and owners gain transparency about flood risk history—a genuine public benefit—but private insurers gain access to subsidized government flood data that may enable them to cherry-pick low-risk properties and raise premiums on high-risk ones, potentially leaving NFIP with a worse risk pool and higher costs for remaining policyholders.

Who stands to gain

• Private insurance companies (access to subsidized NFIP flood claims data for underwriting and premiu
• Insurance companies meeting Flood Disaster Protection Act section 102(7) criteria (eligible to parti

Named in the bill

National Flood Insurance Program (NFIP), National Flood Insurance Fund, NFIP Administrator, Private insurance companies, AIG, Fidelity & Deposit Co. of Maryland (FBK), Federated National Holding Company (FMAO), Principal Financial Group (PFG), Prudential Financial (PRU), Flood Disaster Protection Act of 1973, Privacy Act (5 U.S.C. § 552a)

Where it stands

1 cosponsor: 1 Republicans.

• Feb 4, 2026 — Introduced · Congress.gov: “Introduced in House”
• Feb 4, 2026 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.