Cassidy, Gillibrand Release National Flood Insurance Extension Draft Legislation for Comment | U.S. Senator Bill Cassidy of Louisiana

  • Facilitates Mitigation Credits that Reduce Premium Rates. FEMA will develop meaningful cost reductions, in excess of 10% of the current risk premium rate for a property, for flood mitigation activities undertaken on properties in all zones, including moderate risk zones. Flood mitigation activities shall be defined by the Administrator and include elevation of mechanical systems and recommendations identified in FEMA Mitigation Assessment Team reports.


  • Provides Affordability Vouchers to Offset the Cost of Flood Insurance. For certain policyholders, owner-occupied households for which flood insurance premiums and fees would result in housing costs exceeding 40 percent of household income, affordability vouchers shall be available to offset premium costs exceeding the 40% housing cost threshold.
  • Modernizes coverage limits to align with actual replacement costs of residential and non-residential structures. Increases coverage limits from $250,000 to $500,000 for residential structures and $500,000 to $1,000,000 for multifamily and businesses structures to mitigate financial loss and enhance coverage for the replacement value of structures in competitive property markets.    


  • Creates an Agreed Value Insurance Pilot option for insureds in addition to the traditional stochastic model used to quantify flood loss in monetary terms. Insurance contract prices based on exceedance probabilities of dollar loss levels with a parametric trigger (e.g., indexed to flood/water gauges) used as an alternative to direct loss measurement and site-by-site examination of actual loss could dramatically decrease the cost of flood insurance without jeopardizing the solvency of the National Flood Insurance Program. The Agreed Value Insurance Policy uses FEMA’s existing water depth probability that waters will reach or exceed a given depth of a structure relative to Base Flood Elevation. Savings to the policyholder is achieved by pre-determining the amount paid out in claims (avoiding costly overhead expenditures) according to the depth of water damage to a structure.


1 2 3 4 5 6