Reps. Castor, Salazar Reintroduce Bipartisan Legislation To Lower Flood Insurance Costs

The following information was released by the office of Florida Rep. Kathy Castor:

Higher Costs of Flood Damage Due to Extreme Events like Hurricanes Helene and Milton Demand Solutions

Washington, December 11, 2025

Today, U.S. Reps. Kathy Castor (FL-14) and Maria Salazar (FL-27) reintroduced the Continuous Coverage for Flood Insurance Act, which would lower costs by ensuring that the Federal Emergency Management Agency (FEMA) allows consumers to exercise their right to maintain flood insurance outside of the National Flood Insurance Program (NFIP).

"Families, homeowners and small businesses across Florida including across the recovering Tampa Bay area deserve real financial stability, peace of mind and clarity when it comes to flood insurance," said Rep. Kathy Castor. "Our bipartisan legislation empowers consumers with more options by allowing access to private flood insurance, without penalty. For coastal communities like Tampa Bay, healthy competition can lower costs, expand the insurance pool and help bring down flood insurance rates. I'm pleased to work with my fellow Floridian, Rep. Maria Salazar, to ease cost burdens on hardworking Floridians and expand consumer choice in continuous flood insurance coverage."

"Now more than ever, Miami residents and Americans nationwide deserve real choice and affordable coverage in the flood-insurance market," said Rep. Maria Salazar. "By opening the door to greater private-sector involvement, the Continuous Coverage for Flood Insurance Act will lower the burden on U.S. taxpayers and provide stronger, more reliable protection."

In 2012, Congress enacted the Biggert-Waters Flood Insurance Reform Act to reform the NFIP. Among other reforms, the Biggert-Waters Act required federal lending institutions to accept certain non-NFIP insurance policies, reinforcing the fact that other non-NFIP insurance policies can be used to satisfy the NFIP's mandatory purchase requirement. As a result of this law, in February 2019, a final rule was issued regarding the acceptance of non-NFIP insurance, which took effect on July 1, 2019.

Many consumers are unable to take advantage of these potentially beneficial and cost-effective non-NFIP insurance policies.Currently, the NFIP requires continuous coverage to be eligible for grandfathered rates, but only counts the time in an NFIP policy. If a policyholder chooses to leave the program and return later, the NFIP will charge the full, non-grandfathered rate even if the policyholder decides to obtain a non-NFIP insurance policy that complies with the new rule.The prospect of higher insurance rates is not only a deterrent to the marketplace but also a barrier to more affordable flood insurance.

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