H.R. 3161: Preventing Environmental Hazards Act of 2025

This bill, titled the Preventing Environmental Hazards Act of 2025, proposes changes to the National Flood Insurance Program (NFIP) to extend coverage for properties affected by shoreline erosion and situations leading to imminent structural collapse. Here are the key points of the bill:

Flood Insurance Coverage Expansion

The bill aims to modify the NFIP to allow for claims related to properties deemed unsafe due to:

• Imminent collapse or subsidence caused by shoreline erosion.
• Structures that are partially or wholly located over water or below a certain tidal water level.

Claim Procedures

When a property meets these criteria and is covered by flood insurance, the following actions may take place:

• If a property is condemned, the flood insurance administrator can provide financial assistance for:
• Demolition: Owners can receive up to 40% of the property value initially, and a further 60% after demolition is completed within a certain timeframe.
• Relocation: If the owner chooses to relocate the structure, they may receive up to 40% of the property's value before any collapse occurs.
• If a property collapses or is not demolished or relocated in time, payments may be limited.

Valuation of Structures

The bill outlines how the value of a structure will be determined for insurance claims, which could include:

• The fair market value of a similar, stable structure.
• The price paid for the structure adjusted for inflation.
• The value identified in the flood insurance contract.

Coverage Limits and Exclusions

The following provisions will apply to claims under this bill:

• The maximum insurance payout cannot exceed the lesser of the insurance policy coverage or $250,000.
• Coverage will not include any loss or damage to the contents within the structure.

Applicability of the Bill

The changes will apply to flood insurance policies that are active as of the date the bill becomes law or those issued thereafter. There are specific stipulations regarding the duration of coverage needed before becoming eligible for claims under this bill.

Termination of Coverage

If a claim is made under the new provisions, future flood insurance for that same structure may not be available, limiting assistance for subsequent disasters.

Implementation Regulations

The bill mandates that the flood insurance administrator develop necessary regulations to implement these changes.

Effective Date

These amendments will take effect upon the bill's enactment.

Relevant Companies

• FLOOD (Flood Insurance Corp.) - This company may see an increase in claims related to erosion as properties become eligible for more coverage under the new provisions.
• RECQR (Relocation and Erosion Coverage Services) - This company may experience growth due to potential demand for services related to the relocation of properties affected by shoreline erosion.