The National Flood Insurance Program Administrative Reform Act of 2025 makes sweeping changes to improve fraud prevention, customer service, and transparency in the federal flood insurance system. The bill establishes new criminal penalties for fraudulent claims, creates a voluntary pilot program for insurers to investigate structural damage before paying claims, and strengthens policyholder protections through a formal appeals process with a 120-day decision deadline. The legislation also requires standardized disclosure sheets explaining coverage limits, prohibits hiring disbarred attorneys, mandates transparency in claims adjustments, and establishes a new advisory committee of industry experts and consumer advocates to meet at least twice yearly and recommend operational improvements. Additionally, the bill directs federal regulators to update flood insurance guidance every two years and requires the Government Accountability Office to study claims practices within 18 months. These reforms collectively aim to reduce fraud and taxpayer liability while ensuring customers understand their coverage and have meaningful recourse when claims are disputed.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.