H.R. 9511: NFIP Premium Transparency Act

This bill would require FEMA to create an online flood insurance information tool for properties covered by the National Flood Insurance Program (NFIP), and to make more detailed flood insurance information available to policyholders and, in some cases, the public.

What would be included on flood insurance documents

Within 12 months of enactment, NFIP flood insurance declaration pages would have to include more information about a policy and the property it covers, such as:

• The current premium and any discounts being applied.
• Whether the property qualifies for special pricing rules, such as grandfathering, pre-FIRM status, newly mapped property discounts, or Community Rating System discounts.
• An estimate of how many years it may take before the premium reaches the full-risk rate, taking annual caps on premium increases into account.
• Mitigation options that could lower premiums.
• Claim history.
• Whether the property is classified as repetitive loss or severe repetitive loss.
• Any flood insurance requirement tied to prior federal disaster assistance.
• After 36 months, the web address for FEMA’s new information tool.

If any required item cannot be provided, the declaration page would have to explain why.

What the new online tool would do

Within 36 months, FEMA would have to develop an online flood insurance information tool for properties eligible for NFIP coverage. The tool would show, for each property:

• The current premium and why it may be below actuarial risk-based rates.
• Any limits on annual premium increases.
• The risk-based premium rate.
• The replacement cost value of the property and the date it was calculated.
• Rating factors used in pricing, to the extent they can be disclosed without violating privacy or other laws.
• Flood claim history and dates of claims.
• Special property classifications, such as repetitive loss or severe repetitive loss.
• The date of the most recent flood hazard determination and any planned future determination.
• Any flood insurance requirement linked to prior federal disaster assistance.
• Any other information FEMA decides is appropriate.

The tool would also have to explain why any required information cannot be shown if it is unavailable.

Who could access the tool

FEMA would be required to provide access to parts of the tool based on its judgment about the public interest and privacy concerns:

• Some information could be made available to the public.
• Other information could be limited to property owners whose homes or buildings are insured under NFIP.

Ability to test changes and mitigation

To the extent practical, the tool would let users adjust certain variables that affect flood risk and see how those changes might reduce flood risk and lower premiums. The bill specifically says this capability should support evaluating changes over time and mitigation measures.

Annual state, county, and ZIP code data

Starting one year after enactment, and every year after that, FEMA would have to publish online statistics for each state, county, and ZIP code showing the distribution of:

• Chargeable premium rates.
• Full-risk premium rates.

The data would include the median, mean, lower and upper quartiles, maximum, and minimum.

Additional reports required

The bill would also require the Government Accountability Office (GAO) to study the tool within two years after FEMA launches it and report on whether the tool could be expanded to include information such as:

• Property acquisition programs the property may qualify for.
• Nature-based solutions to reduce flood risk.
• Coastal restoration projects.
• Planned or existing flood defenses nearby.
• How future development could affect flood risk.
• Local repair or improvement standards that go beyond NFIP requirements.
• Community Rating System discounts.
• Whether prospective buyers could access the tool.
• Whether the tool could let users model more factors affecting flood risk, such as sea level rise, impervious cover, levee reliability, and coastal restoration.
• Whether the tool could be expanded further.
• Whether the information could be used in appeals processes.

Relevant Companies

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