Florida senators reintroduce 'Flood Insurance Relief Act' to combat skyrocketing costs

WASHINGTON, D.C. - Florida senators have reintroduced the "Flood Insurance Relief Act" to provide tax relief for Americans in the Sunshine State and beyond with a non-refundable tax deduction on flood insurance premiums paid through the National Flood Insurance Program (NFIP) or through private insurers.

What is the ‘Flood Insurance Relief Act?’

What we know:

On Thursday, Florida Sens. Rick Scott and Ashley Moody reintroduced the "Flood Insurance Relief Act." Congressman Byron Donalds is leading the companion legislation in the House of Representatives.

The act aims to provide tax relief for Americans with a non-refundable tax deduction on flood insurance premiums paid through the NFIP or through private insurers. Legislators said the bill will help ease the financial burden of rising flood insurance costs for Americans in Florida and across the nation. 

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This legislation builds on Scott’s legislative package to reform the NFIP, which he said will help lower the cost of flood insurance for families, foster a stronger private market and ensure the insurance system better serves Florida families. 

The package includes: 

• The Flood Insurance Transparency Act: Requires the Federal Emergency Management Agency to make detailed historic claims, policy and flood risk data available to the public and easily accessible, while protecting personal information as required by law.
• The Flood Insurance Consumer Choice Act: Amends the NFIP’s "Continuous Coverage" requirement and allows NFIP policyholders who leave the program to purchase a private policy to return to the NFIP without penalty.
• The Removing Barriers to Private Flood Insurance Act: Permanently eliminates the NFIP’s Write Your Own (WYO) company non-compete clause, which currently prohibits WYO companies from selling private flood insurance products that compete with NFIP products.
• The Residential Emergency Asset Accumulation Deferred Taxation Yield (READY) Account Act: Allows taxpayers to establish a tax-free savings account specifically for home mitigation and disaster recovery expenses.

An aerial view shows a police vehicle driving along a flooded street in New Port Richey, Florida, on August 30, 2023, after Hurricane Idalia made landfall. (MIGUEL J. RODRIGUEZ CARRILLO/AFP via Getty Images)

‘Families shouldn’t have to choose between protecting their homes and putting food on the table’

What they're saying:

Sen. Scott said Floridians know well that flood insurance can be a crucial but costly asset, and he believes it's unacceptable that many are left struggling to find flood insurance coverage they can afford. 

"Families shouldn’t have to choose between protecting their homes and putting food on the table," he said. "I’ve been working on several bills to fix the broken NFIP system and encourage private-sector participation to allow for a more robust, affordable flood insurance market, but we must do more to help families ASAP. My Flood Insurance Relief Act offers a practical way to directly ease the financial burden of flood insurance for families by allowing a tax deduction on their premiums, whether through the NFIP or the private market."

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Moody said many people continue to express their worries about the rising cost of flood insurance as she travels around Florida. She said the new bill is a "critical solution that will directly benefit Floridians."

"For far too long, the rising cost of flood insurance has crushed hardworking Floridians," Donalds said. "This is unacceptable, this must change, and this critical issue must be addressed to ensure our economy works for all Americans. The time for action is now, and I’m proud to join Sen. Rick Scott in introducing the Flood Insurance Relief Act to provide this overdue relief to policyholders across our Southwest Florida community, the Sunshine State and the nation."