Florida Senator Rick Scott rolled out a flood insurance legislative package to reduce costs and expand consumer options.
Senator Rick Scott announced the rollout of his legislative package to reform the National Flood Insurance Program (NFIP), which will help lower the cost of flood insurance for families, foster a stronger private market, and ensure the insurance system better serves Florida families.
The legislative package includes three bills: the Flood Insurance Transparency Act, the Flood Insurance Consumer Choice Act, and the Removing Barriers to Private Flood Insurance Act. The Republican Senator said that since its inception, the NFIP has been unfair to Florida policyholders who have historically paid more in premiums than in claims reimbursements.
The Flood Insurance Transparency Act requires the Federal Emergency Management Agency to make detailed historic claims, policy, and flood risk data available to the public and easily accessible, while protecting personal information as required by law.
The Flood Insurance Consumer Choice Act amends the NFIP’s ‘Continuous Coverage’ requirement and allows NFIP policyholders who leave the program to purchase a private policy to return to the NFIP without penalty.
The Removing Barriers to Private Flood Insurance Act will permanently eliminate the NFIP’s Write Your Own (WYO) company non-compete clause which currently prohibits WYO companies from selling private flood insurance products that compete with NFIP products.
“With hurricane season underway, families in Florida and across the nation have flood insurance top of mind and are seeking access to affordable, reliable coverage when they need it most,” Senator Rick Scott said. “The NFIP has historically been wildly inefficient, buried in debt, and pushes unaffordable rate hikes that have been unfair to Florida’s taxpayers. It’s a textbook case of what happens when big government tries to take over an industry – complete failure. My legislative package works to reform the NFIP by increasing transparency in the system and encouraging more private-sector participation, allowing for a robust and affordable flood insurance market that gives homeowners in Florida choices and flexibility with their flood insurance plans. I look forward to working with my colleagues to pass these critical reforms to make government work better for families.”
