H.R. 5961: Flood Insurance for Farmers Act of 2025

This bill, titled the "Flood Insurance for Farmers Act of 2025," aims to enhance the availability of flood insurance specifically for agricultural structures located in areas at high risk for flooding. Here are the key elements of the bill:

1. Variance for Agricultural Structures

The bill introduces provisions that allow local and state land use authorities to grant variances regarding flood management rules for certain agricultural buildings within designated flood-prone areas. Here are the conditions under which these variances can be applied:

• Local authorities can grant a variance from the requirement to elevate or floodproof agricultural structures if they deem that these steps are not practicable.
• Variances can be granted by qualified officials who take into account several considerations, such as the structure's location in relation to flood zones and prior flood insurance claims.
• A variance will not lead to increased flood heights or safety issues for the community.

Notably, if a variance is granted, it cannot lead to the community being suspended from participation in the National Flood Insurance Program.

2. Premium Rate Adjustments

The bill also proposes adjustments to premium rates under the National Flood Insurance Program. Specifically:

• For agricultural structures that have been granted a variance, the flood insurance premium would be calculated based on the same rates applicable to structures that have been dry floodproofed, or based on an actuarial rate considering the risks associated with that zone.

3. Optional Umbrella Coverage

The legislation introduces an option for umbrella policies that cover either commercial or residential properties, including agricultural properties. Here are the key points:

• Insured property owners can opt for one umbrella policy covering multiple structures on the same property.
• This umbrella coverage is optional, meaning customers can choose to add it to their policies.
• The rates for this umbrella coverage would be determined based on actuarial estimates for such coverage.

4. Reporting Requirements

The Federal Emergency Management Agency (FEMA) is mandated to report to Congress within five years after the enactment of this act, outlining the implementation and impact of the new provisions concerning umbrella policies.

Relevant Companies

• NDAQ - Nasdaq Inc.: This company operates financial markets that include insurance products and could be affected by changes in flood insurance offerings.
• ALL - Allstate Corporation: Being a major provider of insurance, changes to flood insurance regulations and rates could affect its offerings and pricing strategies.
• PRU - Prudential Financial: This company, which offers a variety of insurance products, may adjust its flood insurance policies based on the new variances and premium rate structures.