Homeowners can now switch flood insurers without losing rate breaks
S. 2054 — Flood Insurance Consumer Choice Act of 2025 · Filed by Rick Scott (R-FL) · Introduced Jun 12, 2025 · Referred to committee
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What it does
This bill allows homeowners who left the National Flood Insurance Program (NFIP) to buy private flood insurance and then return to NFIP later without losing their continuous-coverage status or facing penalties. Currently, gaps in NFIP coverage can trigger rate increases or eligibility restrictions; this bill treats private insurance as a seamless continuation for those purposes.
Why we flagged it
The bill's operative mechanism is to remove a penalty (loss of continuous-coverage credit) that currently discourages NFIP policyholders from switching to private insurance. It is fundamentally a deregulatory measure that expands consumer optionality in the flood insurance market.
What the text implies
- Private insurers may cherry-pick lower-risk properties, leaving NFIP with a higher-risk pool and potentially raising rates for remaining NFIP customers who cannot access private market alternatives.
- Homeowners in high-risk flood zones may find private insurance unavailable or unaffordable, limiting the practical choice this bill creates for the most vulnerable populations.
The full analysis lists 3 implications of this text.
Who stands to gain
private flood insurance companies; homeowners in moderate-to-low flood-risk areas with access to private market alternatives