Flood Insurance Consumer Choice Act of 2025

Flood Insurance Consumer Choice Act of 2025 (S. 2054) would allow National Flood Insurance Program (NFIP) policyholders who leave NFIP to buy private flood insurance and later return to NFIP without penalties. The key change is to treat periods of private-market flood coverage as continuous NFIP coverage for purposes of eligibility and continuity rules. Specifically, the bill adds a new provision to the NFIA that ensures any time a property is continuously covered by a private flood policy used to meet statutory continuous-coverage requirements counts toward maintaining continuity when applying NFIP rules. This aims to make it easier for homeowners to switch to private flood insurance temporarily and then re-enter NFIP without losing continuity-based benefits, such as favorable rates or grandfathering provisions. In short, the bill codifies that private flood insurance coverage can count toward the NFIP’s continuous-coverage requirements, reducing potential penalties or loss of benefits if a policyholder leaves NFIP and later returns.