1. U.S. Code
  2. title 42
  3. chapter 50
  4. subchapter I
  5. § 4013a

Collapse to view only § 4013a. Policy disclosures

§ 4011. Authorization to establish and carry out program
(a) Authorization and establishment
(b) Additional coverage for compliance with land use and control measuresThe national flood insurance program established pursuant to subsection (a) shall enable the purchase of insurance to cover the cost of implementing measures that are consistent with land use and control measures established by the community under section 4102 of this title for—
(1) properties that are repetitive loss structures;
(2) properties that are substantially damaged structures;
(3) properties that have sustained flood damage on multiple occasions, if the Administrator determines that it is cost-effective and in the best interests of the National Flood Insurance Fund to require the implementation of such measures; and
(4) properties for which an offer of mitigation assistance is made under—
(A)section 4104c of this title (Flood Mitigation Assistance Program);
(B) the Hazard Mitigation Grant Program authorized under section 5170c of this title;
(C) the Predisaster Hazard Mitigation Program under section 5133 of this title; and
(D) any programs authorized or for which funds are appropriated to address any unmet needs or for which supplemental funds are made available.
The Administrator shall impose a surcharge on each insured of not more than $75 per policy to provide cost of compliance coverage in accordance with the provisions of this subsection.
(c) Participation and risk sharing by insurersIn carrying out the flood insurance program the Administrator shall, to the maximum extent practicable, encourage and arrange for—
(1) appropriate financial participation and risk sharing in the program by insurance companies and other insurers, and
(2) other appropriate participation, on other than a risk-sharing basis, by insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations,
in accordance with the provisions of subchapter II.
(Pub. L. 90–448, title XIII, § 1304, Aug. 1, 1968, 82 Stat. 574; Pub. L. 98–181, title I [title IV, § 451(d)(1), (2)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title V, § 555(a), Sept. 23, 1994, 108 Stat. 2274; Pub. L. 108–264, title I, § 105(a), June 30, 2004, 118 Stat. 723; Pub. L. 112–141, div. F, title II, §§ 100225(f), 100238(b)(1), July 6, 2012, 126 Stat. 942, 958.)

CITE AS: 42 USC 4011

§ 4012. Scope of program and priorities
(a) Priority for insurance for certain residential and church properties and business concerns
(b) Availability of insurance for other properties
If on the basis of—
(1) studies and investigations undertaken and carried out and information received or exchanged under section 4014 of this title, and
(2) such other information as may be necessary,
the Administrator determines that it would be feasible to extend the flood insurance program to cover other properties, he may take such action under this chapter as from time to time may be necessary in order to make flood insurance available to cover, on such basis as may be feasible, any types and classes of—
(A) other residential properties not described in subsection (a) or (d),
(B) other business properties,
(C) agricultural properties,
(D) properties occupied by private nonprofit organizations, and
(E) properties owned by State and local governments and agencies thereof,
and any such extensions of the program to any types and classes of these properties shall from time to time be prescribed in regulations.
(c) Availability of insurance in States or areas evidencing positive interest in securing insurance and assuring adoption of adequate land use and control measures
The Administrator shall make flood insurance available in only those States or areas (or subdivisions thereof) which he has determined have—
(1) evidenced a positive interest in securing flood insurance coverage under the flood insurance program, and
(2) given satisfactory assurance that by December 31, 1971, adequate land use and control measures will have been adopted for the State or area (or subdivision) which are consistent with the comprehensive criteria for land management and use developed under section 4102 of this title, and that the application and enforcement of such measures will commence as soon as technical information on floodways and on controlling flood elevations is available.
(d) Availability of insurance for multifamily properties
(1) In general
(2) Rule of construction
(Pub. L. 90–448, title XIII, § 1305, Aug. 1, 1968, 82 Stat. 574; Pub. L. 91–152, title IV, § 410(a), Dec. 24, 1969, 83 Stat. 397; Pub. L. 92–213, § 2(c)(1), Dec. 22, 1971, 85 Stat. 775; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, §§ 100204, 100238(b)(1), July 6, 2012, 126 Stat. 916, 958.)

CITE AS: 42 USC 4012

§ 4012a. Flood insurance purchase and compliance requirements and escrow accounts
(a) Amount and term of coverage
(b) Requirement for mortgage loans
(1) Regulated lending institutionsEach Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council established under the Federal Financial Institutions Examination Council Act of 1974 [12 U.S.C. 3301 et seq.]) shall by regulation direct regulated lending institutions—
(A) not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in an amount at least equal to the outstanding principal balance of the loan or the maximum limit of coverage made available under the Act with respect to the particular type of property, whichever is less; and
(B) to accept private flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements for coverage under such subparagraph.
(2) Federal agency lenders
(3) Government-sponsored enterprises for housingThe Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall implement procedures reasonably designed to ensure that, for any loan that is—
(A) secured by improved real estate or a mobile home located in an area that has been identified, at the time of the origination of the loan or at any time during the term of the loan, by the Administrator as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968, and
(B) purchased by such entity,
the building or mobile home and any personal property securing the loan is covered for the term of the loan by flood insurance in the amount provided in paragraph (1)(A). The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under paragraph (1)(A) if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation will accept private flood insurance.
(4) Applicability
(A) Existing coverage
(B) New coverage
(C) Continued effect of regulations
(5) Rule of construction
(6) Notice
(A) In generalEach lender shall disclose to a borrower that is subject to this subsection that—
(i) flood insurance is available from private insurance companies that issue standard flood insurance policies on behalf of the national flood insurance program or directly from the national flood insurance program;
(ii) flood insurance that provides the same level of coverage as a standard flood insurance policy under the national flood insurance program may be available from a private insurance company that issues policies on behalf of the company; and
(iii) the borrower is encouraged to compare the flood insurance coverage, deductibles, exclusions, conditions and premiums associated with flood insurance policies issued on behalf of the national flood insurance program and policies issued on behalf of private insurance companies and to direct inquiries regarding the availability, cost, and comparisons of flood insurance coverage to an insurance agent.
(B) Rule of construction
(7) Private flood insurance definedIn this subsection, the term “private flood insurance” means an insurance policy that—
(A) is issued by an insurance company that is—
(i) licensed, admitted, or otherwise approved to engage in the business of insurance in the State or jurisdiction in which the insured building is located, by the insurance regulator of that State or jurisdiction; or
(ii) in the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage insuring nonresidential commercial property, is 1
1 So in original. The word “is” probably should not appear.
recognized, or not disapproved, as a surplus lines insurer by the insurance regulator of the State or jurisdiction where the property to be insured is located;
(B) provides flood insurance coverage which is at least as broad as the coverage provided under a standard flood insurance policy under the national flood insurance program, including when considering deductibles, exclusions, and conditions offered by the insurer;
(C) includes—
(i) a requirement for the insurer to give 45 days’ written notice of cancellation or non-renewal of flood insurance coverage to—(I) the insured; and(II) the regulated lending institution or Federal agency lender;
(ii) information about the availability of flood insurance coverage under the national flood insurance program;
(iii) a mortgage interest clause similar to the clause contained in a standard flood insurance policy under the national flood insurance program; and
(iv) a provision requiring an insured to file suit not later than 1 year after date of a written denial of all or part of a claim under the policy; and
(D) contains cancellation provisions that are as restrictive as the provisions contained in a standard flood insurance policy under the national flood insurance program.
(c) Exceptions to purchase requirements
(1) State-owned property
(2) Small loansNotwithstanding any other provision of this section, subsections (a) and (b) shall not apply to any loan having—
(A) an original outstanding principal balance of $5,000 or less; and
(B) a repayment term of 1 year or less.
(3) Detached structures
(d) Escrow of flood insurance payments
(1) Regulated lending institutions
(A) Federal entities responsible for lending regulations
(B) LimitationExcept as may be required under applicable State law, a Federal entity for lending regulation may not direct or require a regulated lending institution to deposit premiums or fees for flood insurance under the National Flood Insurance Act of 1968 in an escrow account on behalf of a borrower under subparagraph (A)—
(i) if—(I) the regulated lending institution has total assets of less than $1,000,000,000; and(II) on or before July 6, 2012, the regulated lending institution—(aa) in the case of a loan secured by residential improved real estate or a mobile home, was not required under Federal or State law to deposit taxes, insurance premiums, fees, or any other charges in an escrow account for the entire term of the loan; and(bb) did not have a policy of consistently and uniformly requiring the deposit of taxes, insurance premiums, fees, or any other charges in an escrow account for loans secured by residential improved real estate or a mobile home; or
(ii) in the case of a loan that—(I) is in a junior or subordinate position to a senior lien secured by the same residential improved real estate or mobile home for which flood insurance is being provided at the time of the origination of the loan;(II) is secured by residential improved real estate or a mobile home that is part of a condominium, cooperative, or other project development, if the residential improved real estate or mobile home is covered by a flood insurance policy that—(aa) meets the requirements that the regulated lending institution is required to enforce under subsection (b)(1);(bb) is provided by the condominium association, cooperative, homeowners association, or other applicable group; and(cc) the premium for which is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense;(III) is secured by residential improved real estate or a mobile home that is used as collateral for a business purpose;(IV) is a home equity line of credit;(V) is a nonperforming loan; or(VI) has a term of not longer than 12 months.
(2) Federal agency lenders
(3) Applicability of RESPA
(4) “Residential improved real estate” defined
(5) Applicability
(e) Placement of flood insurance by lender
(1) Notification to borrower of lack of coverage
(2) Purchase of coverage on behalf of borrower
(3) Termination of force-placed insuranceWithin 30 days of receipt by the lender or servicer of a confirmation of a borrower’s existing flood insurance coverage, the lender or servicer shall—
(A) terminate any insurance purchased by the lender or servicer under paragraph (2); and
(B) refund to the borrower all premiums paid by the borrower for any insurance purchased by the lender or servicer under paragraph (2) during any period during which the borrower’s flood insurance coverage and the insurance coverage purchased by the lender or servicer were each in effect, and any related fees charged to the borrower with respect to the insurance purchased by the lender or servicer during such period.
(4) Sufficiency of demonstration
(5) Review of determination regarding required purchase
(A) In general
(B) Effect of determination
(C) Effect of failure to respond
(6) Applicability
(f) Civil monetary penalties for failure to require flood insurance or notify
(1) Civil monetary penalties against regulated lenders
(2) Lender violationsThe violations referred to in paragraph (1) shall include—
(A) making, increasing, extending, or renewing loans in violation of—
(i) the regulations issued pursuant to subsection (b) of this section;
(ii) the escrow requirements under subsection (d) of this section; or
(iii) the notice requirements under section 1364 of the National Flood Insurance Act of 1968 [42 U.S.C. 4104a]; or
(B) failure to provide notice or purchase flood insurance coverage in violation of subsection (e) of this section.
(3) Civil monetary penalties against GSE’s
(A) In general
(B) “Enterprise” defined
(4) Notice and hearing
(5) Amount
(6) Lender compliance
(7) Effect of transfer on liability
(8) Deposit of penalties
(9) Additional penalties
(10) Statute of limitations
(g) Other actions to remedy pattern of noncompliance
(1) Authority of Federal entities for lending regulation
(2) Determination of violationsA determination under this paragraph shall be a finding that—
(A) the regulated lending institution has engaged in a pattern and practice of noncompliance in violation of the regulations issued pursuant to subsection (b), (d), or (e) or the notice requirements under section 1364 of the National Flood Insurance Act of 1968 [42 U.S.C. 4104a]; and
(B) the regulated lending institution has not demonstrated measurable improvement in compliance despite the assessment of civil monetary penalties under subsection (f).
(h) Fee for determining locationNotwithstanding any other Federal or State law, any person who makes a loan secured by improved real estate or a mobile home or any servicer for such a loan may charge a reasonable fee for the costs of determining whether the building or mobile home securing the loan is located in an area having special flood hazards, but only in accordance with the following requirements:
(1) Borrower feeThe borrower under such a loan may be charged the fee, but only if the determination—
(A) is made pursuant to the making, increasing, extending, or renewing of the loan that is initiated by the borrower;
(B) is made pursuant to a revision or updating under section 1360(f) 4
4 So in original. Probably should be followed by “of the National Flood Insurance Act of 1968”.
[42 U.S.C. 4101(f)] of the floodplain areas and flood-risk zones or publication of a notice or compendia under subsection (h) or (i) of section 1360 4 [42 U.S.C. 4101(h), (i)] that affects the area in which the improved real estate or mobile home securing the loan is located or that, in the determination of the Administrator, may reasonably be considered to require a determination under this subsection; or
(C) results in the purchase of flood insurance coverage pursuant to the requirement under subsection (e)(2).
(2) Purchaser or transferee fee
(Pub. L. 93–234, title I, § 102, Dec. 31, 1973, 87 Stat. 978; Pub. L. 98–181, title I [title IV, § 451(e)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title V, §§ 522–526, 531, 582(c), Sept. 23, 1994, 108 Stat. 2257–2262, 2267, 2287; Pub. L. 110–289, div. A, title I, § 1161(e), July 30, 2008, 122 Stat. 2780; Pub. L. 112–141, div. F, title II, §§ 100208, 100209(a), 100238(a)(1), 100239(a), 100244(a), July 6, 2012, 126 Stat. 919, 920, 958, 966; Pub. L. 112–281, § 1, Jan. 14, 2013, 126 Stat. 2485; Pub. L. 113–89, §§ 13(a), 25(a), Mar. 21, 2014, 128 Stat. 1026, 1030.)

CITE AS: 42 USC 4012a

§ 4013. Nature and limitation of insurance coverage
(a) Regulations respecting general terms and conditions of insurabilityThe Administrator shall from time to time, after consultation with the advisory committee authorized under section 4025 of this title, appropriate representatives of the pool formed or otherwise created under section 4051 of this title, and appropriate representatives of the insurance authorities of the respective States, provide by regulation for general terms and conditions of insurability which shall be applicable to properties eligible for flood insurance coverage under section 4012 of this title, including—
(1) the types, classes, and locations of any such properties which shall be eligible for flood insurance;
(2) the nature and limits of loss or damage in any areas (or subdivisions thereof) which may be covered by such insurance;
(3) the classification, limitation, and rejection of any risks which may be advisable;
(4) appropriate minimum premiums;
(5) appropriate loss-deductibles; and
(6) any other terms and conditions relating to insurance coverage or exclusion which may be necessary to carry out the purposes of this chapter.
(b) Regulations respecting amount of coverageIn addition to any other terms and conditions under subsection (a), such regulations shall provide that—
(1) any flood insurance coverage based on chargeable premium rates under section 4015 of this title which are less than the estimated premium rates under section 4014(a)(1) of this title shall not exceed—
(A) in the case of residential properties—
(i) $35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit,
(ii) $10,000 aggregate liability per dwelling unit for any contents related to such unit, and
(iii) in the States of Alaska and Hawaii, and in the Virgin Islands and Guam; the limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability for any single-family dwelling, and $150,000 for any residential structure containing more than one dwelling unit;
(B) in the case of business properties which are owned or leased and operated by small business concerns, an aggregate liability with respect to any single structure, including any contents thereof related to premises of small business occupants (as that term is defined by the Administrator), which shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by the number of such occupants and shall be allocated among such occupants (or among the occupant or occupants and the owner) under regulations prescribed by the Administrator; except that the aggregate liability for the structure itself may in no case exceed $100,000; and
(C) in the case of church properties and any other properties which may become eligible for flood insurance under section 4012 of this title—
(i) $100,000 aggregate liability for any single structure, and
(ii) $100,000 aggregate liability per unit for any contents related to such unit; and
(2) in the case of any residential building designed for the occupancy of from 1 to 4 families for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (i) of subparagraph (A) of paragraph (1) shall be made available, with respect to any single such building, up to an aggregate liability (including such limits specified in paragraph (1)(A)(i)) of $250,000;
(3) in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (ii) of subparagraph (A) of paragraph (1) shall be made available to every insured upon renewal and every applicant for insurance so as to enable any such insured or applicant to receive coverage up to a total amount (including such limits specified in paragraph (1)(A)(ii)) of $100,000;
(4) in the case of any nonresidential building, including a church, for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in subparagraphs (B) and (C) of paragraph (1) shall be made available with respect to any single such building, up to an aggregate liability (including such limits specified in subparagraph (B) or (C) of paragraph (1), as applicable) of $500,000, and coverage shall be made available up to a total of $500,000 aggregate liability for contents owned by the building owner and $500,000 aggregate liability for each unit within the building for contents owned by the tenant; and
(5) any flood insurance coverage which may be made available in excess of the limits specified in subparagraph (A), (B), or (C) of paragraph (1), shall be based only on chargeable premium rates under section 4015 of this title, which are not less than the estimated premium rates under section 4014(a)(1) of this title, and the amount of such excess coverage shall not in any case exceed an amount equal to the applicable limit so specified (or allocated) under paragraph (1)(C), (2), (3), or (4), as applicable.
(c) Effective date of policies
(1) Waiting period
(2) ExceptionThe provisions of paragraph (1) shall not apply to—
(A) the initial purchase of flood insurance coverage under this chapter when the purchase of insurance is in connection with the making, increasing, extension, or renewal of a loan;
(B) the initial purchase of flood insurance coverage pursuant to a revision or updating of floodplain areas or flood-risk zones under section 4101(f) of this title, if such purchase occurs during the 1-year period beginning upon publication of notice of the revision or updating under section 4101(h) of this title; or
(C) the initial purchase of flood insurance coverage for private property if—
(i) the Administrator determines that the property is affected by flooding on Federal land that is a result of, or is exacerbated by, post-wildfire conditions, after consultation with an authorized employee of the Federal agency that has jurisdiction of the land on which the wildfire that caused the post-wildfire conditions occurred; and
(ii) the flood insurance coverage was purchased not later than 60 days after the fire containment date, as determined by the appropriate Federal employee, relating to the wildfire that caused the post-wildfire conditions described in clause (i).
(d) Optional high-deductible policies for residential properties
(1) Availability
(2) Disclosure
(A) Form
(B) InformationThe information described in this subparagraph is—
(i) information sufficient to inform the applicant of the availability of the coverage option required by paragraph (1) to applicants for flood insurance coverage; and
(ii) a statement explaining the effect of a loss-deductible and that, in the event of an insured loss, the insured is responsible out-of-pocket for losses to the extent of the deductible selected.
(Pub. L. 90–448, title XIII, § 1306, Aug. 1, 1968, 82 Stat. 575; Pub. L. 92–213, § 2(c)(2), Dec. 22, 1971, 85 Stat. 775; Pub. L. 93–234, title I, § 101, Dec. 31, 1973, 87 Stat. 977; Pub. L. 95–128, title VII, § 704(a), Oct. 12, 1977, 91 Stat. 1145; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 100–242, title V, § 544(a), Feb. 5, 1988, 101 Stat. 1940; Pub. L. 100–628, title X, § 1086(a), Nov. 7, 1988, 102 Stat. 3278; Pub. L. 100–707, title I, § 109(o), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 101–137, § 1(c), Nov. 3, 1989, 103 Stat. 824; Pub. L. 101–508, title II, § 2302(d), Nov. 5, 1990, 104 Stat. 1388–23; Pub. L. 103–325, title V, §§ 552(a), 573, 579(a), Sept. 23, 1994, 108 Stat. 2269, 2278, 2284; Pub. L. 112–141, div. F, title II, §§ 100228, 100238(b)(1), 100241, July 6, 2012, 126 Stat. 944, 958, 962; Pub. L. 113–89, § 12, Mar. 21, 2014, 128 Stat. 1025.)

CITE AS: 42 USC 4013

§ 4013a. Policy disclosures
(a) In general
(b) Violations
(Pub. L. 112–141, div. F, title II, § 100234, July 6, 2012, 126 Stat. 956.)

CITE AS: 42 USC 4013a

§ 4014. Estimates of premium rates
(a) Studies and investigationsThe Administrator is authorized to undertake and carry out such studies and investigations and receive or exchange such information as may be necessary to estimate, and shall from time to time estimate, on an area, subdivision, or other appropriate basis—
(1) the risk premium rates for flood insurance which—
(A) based on consideration of—
(i) the risk involved and accepted actuarial principles; and
(ii) the flood mitigation activities that an owner or lessee has undertaken on a property, including differences in the risk involved due to land use measures, floodproofing, flood forecasting, and similar measures, and
(B) including—
(i) the applicable operating costs and allowances set forth in the schedules prescribed under section 4018 of this title and reflected in such rates,
(ii) any administrative expenses (or portion of such expenses) of carrying out the flood insurance program which, in his discretion, should properly be reflected in such rates,
(iii) any remaining administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title) not included under clause (ii), which shall be recovered by a fee charged to policyholders and such fee shall not be subject to any agents’ commissions, company expense allowances, or State or local premium taxes, and
(iv) all costs, as prescribed by principles and standards of practice in ratemaking adopted by the American Academy of Actuaries and the Casualty Actuarial Society, including—(I) an estimate of the expected value of future costs,(II) all costs associated with the transfer of risk, and(III) the costs associated with an individual risk transfer with respect to risk classes, as defined by the Administrator,
would be required in order to make such insurance available on an actuarial basis for any types and classes of properties for which insurance coverage is available under section 4012(a) of this title (or is recommended to the Congress under section 4012(b) of this title);
(2) the rates, if less than the rates estimated under paragraph (1), which would be reasonable, would encourage prospective insureds to purchase flood insurance, and would be consistent with the purposes of this chapter, and which, together with a fee charged to policyholders that shall not be not subject to any agents’ commission, company expenses allowances, or State or local premium taxes, shall include any administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title), except that the Administrator shall not estimate rates under this paragraph for—
(A) any residential property which is not the primary residence of an individual;
(B) any severe repetitive loss property;
(C) any property that has incurred flood-related damage in which the cumulative amounts of payments under this chapter equaled or exceeded the fair market value of such property;
(D) any business property; or
(E) any property which on or after July 6, 2012, has experienced or sustained—
(i) substantial damage exceeding 50 percent of the fair market value of such property; or
(ii) substantial improvement exceeding 50 percent of the fair market value of such property; and
(3) the extent, if any, to which federally assisted or other flood protection measures initiated after August 1, 1968, affect such rates.
(b) Utilization of services of other Departments and agencies
(c) Priority to studies and investigations in States or areas evidencing positive interest in securing insurance under program
(d) Parishes of Louisiana; premium rates
(e) Eligibility of community making adequate progress on construction of flood protection system for rates not exceeding those applicable to completed flood protection system; determination of adequate progress
(f) Availability of flood insurance in communities restoring disaccredited flood protection systems; criteria; ratesNotwithstanding any other provision of law, this subsection shall apply to riverine and coastal levees that are located in a community which has been determined by the Administrator of the Federal Emergency Management Agency to be in the process of restoring flood protection afforded by a flood protection system that had been previously accredited on a Flood Insurance Rate Map as providing 100-year frequency flood protection but no longer does so, and shall apply without regard to the level of Federal funding of or participation in the construction, reconstruction, or improvement of the flood protection system. Except as provided in this subsection, in such a community, flood insurance shall be made available to those properties impacted by the disaccreditation of the flood protection system at premium rates that do not exceed those which would be applicable to any property located in an area of special flood hazard, the construction of which was started prior to the effective date of the initial Flood Insurance Rate Map published by the Administrator for the community in which such property is located. A revised Flood Insurance Rate Map shall be prepared for the community to delineate as Zone AR the areas of special flood hazard that result from the disaccreditation of the flood protection system. A community will be considered to be in the process of restoration if—
(1) the flood protection system has been deemed restorable by a Federal agency in consultation with the local project sponsor;
(2) a minimum level of flood protection is still provided to the community by the disaccredited system; and
(3) restoration of the flood protection system is scheduled to occur within a designated time period and in accordance with a progress plan negotiated between the community and the Federal Emergency Management Agency.
Communities that the Administrator of the Federal Emergency Management Agency determines to meet the criteria set forth in paragraphs (1) and (2) as of January 1, 1992, shall not be subject to revised Flood Insurance Rate Maps that contravene the intent of this subsection. Such communities shall remain eligible for C zone rates for properties located in zone AR for any policy written prior to promulgation of final regulations for this section. Floodplain management criteria for such communities shall not require the elevation of improvements to existing structures and shall not exceed 3 feet above existing grade for new construction, provided the base flood elevation based on the disaccredited flood control system does not exceed five feet above existing grade, or the remaining new construction in such communities is limited to infill sites, rehabilitation of existing structures, or redevelopment of previously developed areas.
The Administrator of the Federal Emergency Management Agency shall develop and promulgate regulations to implement this subsection, including minimum floodplain management criteria, within 24 months after October 28, 1992.
(g) No extension of subsidy to new policies or lapsed policiesThe Administrator shall not provide flood insurance to prospective insureds at rates less than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for—
(1) any policy under the flood insurance program that has lapsed in coverage,,1
1 So in original.
unless the decision of the policy holder to permit a lapse in flood insurance coverage was as a result of the property covered by the policy no longer being required to retain such coverage; or
(2) any prospective insured who refuses to accept any offer for mitigation assistance by the Administrator (including an offer to relocate), including an offer of mitigation assistance—
(A) following a major disaster, as defined in section 5122 of this title; or
(B) in connection with—
(i) a repetitive loss property; or
(ii) a severe repetitive loss property.
(h) DefinitionIn this section, the term “severe repetitive loss property” has the following meaning:
(1) Single-family propertiesIn the case of a property consisting of 1 to 4 residences, such term means a property that—
(A) is covered under a contract for flood insurance made available under this chapter; and
(B) has incurred flood-related damage—
(i) for which 4 or more separate claims payments have been made under flood insurance coverage under this subchapter, with the amount of each such claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; or
(ii) for which at least 2 separate claims payments have been made under such coverage, with the cumulative amount of such claims exceeding the value of the property.
(2) Multifamily properties
(Pub. L. 90–448, title XIII, § 1307, Aug. 1, 1968, 82 Stat. 576; Pub. L. 93–234, title I, § 109, Dec. 31, 1973, 87 Stat. 980; Pub. L. 93–383, title VIII, § 816(b), Aug. 22, 1974, 88 Stat. 739; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 101–508, title II, § 2302(e)(1), Nov. 5, 1990, 104 Stat. 1388–24; Pub. L. 102–550, title IX, § 928, Oct. 28, 1992, 106 Stat. 3886; Pub. L. 112–123, § 2(a), May 31, 2012, 126 Stat. 365; Pub. L. 112–141, div. F, title II, §§ 100205(a)(1), (b), 100238(b)(1), July 6, 2012, 126 Stat. 917, 918, 958; Pub. L. 113–89, §§ 3(a)(1), 14, 15, 19, Mar. 21, 2014, 128 Stat. 1021, 1026, 1027.)

CITE AS: 42 USC 4014

§ 4015. Chargeable premium rates
(a) Establishment; terms and conditionsOn the basis of estimates made under section 4014 of this title, and such other information as may be necessary, the Administrator shall from time to time prescribe, after providing notice—
(1) chargeable premium rates for any types and classes of properties for which insurance coverage shall be available under section 4012 of this title (at less than the estimated risk premium rates under section 4014(a)(1) of this title, where necessary), and
(2) the terms and conditions under which, and the areas (including subdivisions thereof) within which, such rates shall apply.
(b) Considerations for ratesSuch rates shall, insofar as practicable, be—
(1) based on a consideration of the respective risks involved, including differences in risks due to land use measures, flood-proofing, flood forecasting, and similar measures;
(2) adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses, or, if less than such amount, consistent with the objective of making flood insurance available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with the purposes of this chapter;
(3) adequate, together with the fee under paragraph (1)(B)(iii) or (2) of section 4014(a) of this title, to provide for any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title);
(4) stated so as to reflect the basis for such rates, including the differences (if any) between the estimated risk premium rates under section 4014(a)(1) of this title and the estimated rates under section 4014(a)(2) of this title; and
(5) adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.
(c) Actuarial rate propertiesSubject only to the limitations provided under paragraphs (1) and (2), the chargeable rate shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under section 4014(a)(1) of this title with respect to the following properties:
(1) Post-firm properties
(2) Certain leased coastal and river properties
(d) Payment of certain sums to Administrator; deposits in Fund
(e) Annual limitation on premium increasesExcept with respect to properties described under paragraph (2) of subsection (c), and notwithstanding any other provision of this chapter—
(1) the chargeable risk premium rate for flood insurance under this chapter for any property may not be increased by more than 18 percent each year, except—
(A) as provided in paragraph (4);
(B) in the case of property identified under section 4014(g) of this title; or
(C) in the case of a property that—
(i) is located in a community that has experienced a rating downgrade under the community rating system program carried out under section 4022(b) of this title;
(ii) is covered by a policy with respect to which the policyholder has—(I) decreased the amount of the deductible; or(II) increased the amount of coverage; or
(iii) was misrated;
(2) the chargeable risk premium rates for flood insurance under this chapter for any properties initially rated under section 4014(a)(2) of this title within any single risk classification, excluding properties for which the chargeable risk premium rate is not less than the applicable estimated risk premium rate under section 4014(a)(1) of this title, shall be increased by an amount that results in an average of such rate increases for properties within the risk classification during any 12-month period of not less than 5 percent of the average of the risk premium rates for such properties within the risk classification upon the commencement of such 12-month period;
(3) the chargeable risk premium rates for flood insurance under this chapter for any properties within any single risk classification may not be increased by an amount that would result in the average of such rate increases for properties within the risk classification during any 12-month period exceeding 15 percent of the average of the risk premium rates for properties within the risk classification upon the commencement of such 12-month period; and
(4) the chargeable risk premium rates for flood insurance under this chapter for any properties described in subparagraphs (A) through (E) of section 4014(a)(2) of this title shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under paragraph (3).
(f) Adjustment of premium
(g) Frequency of premium collection
(h) Rule of constructionFor purposes of this section, the calculation of an “average historical loss year”—
(1) includes catastrophic loss years; and
(2) shall be computed in accordance with generally accepted actuarial principles.
(i) Rates for properties newly mapped into areas with special flood hazardsNotwithstanding subsection (f), the premium rate for flood insurance under this chapter that is purchased on or after March 21, 2014—
(1) on a property located in an area not previously designated as having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood insurance map, becomes designated as such an area; and
(2) where such flood insurance premium rate is calculated under subsection (a)(1) of section 4014 of this title,
shall for the first policy year be the preferred risk premium for the property and upon renewal shall be calculated in accordance with subsection (e) of this section until the rate reaches the rate calculated under subsection (a)(1) of section 4014 of this title.
(j) Premiums and reports
(k) Consideration of mitigation methods
(l) Clear communications
(m) Protection of small businesses, non-profits, houses of worship, and residences
(1) ReportNot later than 18 months after March 21, 2014,1
1 See References in Text note below.
and semiannually thereafter, the Administrator shall monitor and report to Committee on Financial Services of the House Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, the Administrator’s assessment of the impact, if any, of the rate increases required under subparagraphs (A) and (D) of section 4014(a)(2) of this title and the surcharges required under section 4015a of this title on the affordability of flood insurance for—
(A) small businesses with less than 100 employees;
(B) non-profit entities;
(C) houses of worship; and
(D) residences with a value equal to or less than 25 percent of the median home value of properties in the State in which the property is located.
(2) Recommendations
(Pub. L. 90–448, title XIII, § 1308, Aug. 1, 1968, 82 Stat. 576; Pub. L. 93–234, title I, § 103, Dec. 31, 1973, 87 Stat. 978; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 101–508, title II, § 2302(e)(2), Nov. 5, 1990, 104 Stat. 1388–24; Pub. L. 103–325, title V, § 572(a), Sept. 23, 1994, 108 Stat. 2277; Pub. L. 108–264, title I, § 106, title II, § 209, June 30, 2004, 118 Stat. 724, 727; Pub. L. 112–123, § 2(b), May 31, 2012, 126 Stat. 365; Pub. L. 112–141, div. F, title II, §§ 100205(c), (d), 100207, 100211, 100238(b)(1), July 6, 2012, 126 Stat. 918, 919, 921, 958; Pub. L. 113–89, §§ 4(a), 5–7, 11(a), 26(b), 28, 29, Mar. 21, 2014, 128 Stat. 1022, 1023, 1025, 1033.)

CITE AS: 42 USC 4015

§ 4015a. Premium surcharge
(a) Imposition and collection
(b) AmountThe amount of the surcharge under subsection (a) shall be—
(1) $25, except as provided in paragraph (2); and
(2) $250, in the case of a policy for any property that is—
(A) a non-residential property; or
(B) a residential property that is not the primary residence of an individual.
(c) Termination
(Pub. L. 90–448, title XIII, § 1308A, as added Pub. L. 113–89, § 8(a), Mar. 21, 2014, 128 Stat. 1023.)

CITE AS: 42 USC 4015a

§ 4016. Financing
(a) Authority to issue notes and other obligations
(b) Deposit of borrowed funds
(c) Schedule of repayments
Upon the exercise of the authority established under subsection (a), the Administrator shall transmit a schedule for repayment of such amounts to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(3) the Committee on Financial Services of the House of Representatives.
(d) Reports on repayment
In connection with any funds borrowed by the Administrator under the authority established in subsection (a), the Administrator, beginning 6 months after the date on which such funds are borrowed, and continuing every 6 months thereafter until such borrowed funds are fully repaid, shall submit a report on the progress of such repayment to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(3) the Committee on Financial Services of the House of Representatives.
(Pub. L. 90–448, title XIII, § 1309, Aug. 1, 1968, 82 Stat. 577; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669; Pub. L. 93–234, title I, § 104, Dec. 31, 1973, 87 Stat. 979; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 98–479, title II, § 204(g), Oct. 17, 1984, 98 Stat. 2233; Pub. L. 104–208, div. A, title V, Sept. 30, 1996, 110 Stat. 3009–521; Pub. L. 105–65, title III, Oct. 27, 1997, 111 Stat. 1377; Pub. L. 105–276, title III, Oct. 21, 1998, 112 Stat. 2502; Pub. L. 106–74, title III, Oct. 20, 1999, 113 Stat. 1088; Pub. L. 106–377, § 1(a)(1) [title III], Oct. 27, 2000, 114 Stat. 1441, 1441A–47; Pub. L. 107–73, title III, Nov. 26, 2001, 115 Stat. 689; Pub. L. 108–3, § 2(a)(1), Jan. 13, 2003, 117 Stat. 7; Pub. L. 108–171, § 2(a)(2), Dec. 6, 2003, 117 Stat. 2064; Pub. L. 108–199, div. H, § 136(a)(2), Jan. 23, 2004, 118 Stat. 442; Pub. L. 108–264, title I, § 101(a), June 30, 2004, 118 Stat. 714; Pub. L. 109–65, § 2, Sept. 20, 2005, 119 Stat. 1998; Pub. L. 109–106, § 2, Nov. 21, 2005, 119 Stat. 2288; Pub. L. 109–208, § 2, Mar. 23, 2006, 120 Stat. 317; Pub. L. 111–196, § 2(b), July 2, 2010, 124 Stat. 1352; Pub. L. 111–250, § 2(b), Sept. 30, 2010, 124 Stat. 2630; Pub. L. 112–74, div. D, title V, § 573, Dec. 23, 2011, 125 Stat. 985; Pub. L. 112–123, § 1(b), May 31, 2012, 126 Stat. 365; Pub. L. 112–141, div. F, title II, §§ 100203(a), 100213(a), 100238(b)(1), July 6, 2012, 126 Stat. 916, 923, 958; Pub. L. 113–1, § 1(a), Jan. 6, 2013, 127 Stat. 3; Pub. L. 115–225, § 2(a), July 31, 2018, 132 Stat. 1624; Pub. L. 115–281, § 2(a), Dec. 1, 2018, 132 Stat. 4191; Pub. L. 115–396, § 2(a), Dec. 21, 2018, 132 Stat. 5296; Pub. L. 116–19, § 2(a), May 31, 2019, 133 Stat. 870; Pub. L. 116–20, title XII, § 1207(a), June 6, 2019, 133 Stat. 901; Pub. L. 116–159, div. A, § 146(a), Oct. 1, 2020, 134 Stat. 718; Pub. L. 117–103, div. O, title I, § 101(a), Mar. 15, 2022, 136 Stat. 787; Pub. L. 117–328, div. AA, title IX, § 901(a), Dec. 29, 2022, 136 Stat. 5551.)

CITE AS: 42 USC 4016

§ 4017. National Flood Insurance Fund
(a) Establishment; availability
To carry out the flood insurance program authorized by this chapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Fund (hereinafter referred to as the “fund”) which shall be an account separate from any other accounts or funds available to the Administrator and shall be available as described in subsection (f), without fiscal year limitation (except as otherwise provided in this section)—
(1) for making such payments as may, from time to time, be required under section 4054 of this title;
(2) to pay reinsurance claims under the excess loss reinsurance coverage provided under section 4055 of this title;
(3) to repay to the Secretary of the Treasury such sums as may be borrowed from him (together with interest) in accordance with the authority provided in section 4016 of this title; and
(4) to the extent approved in appropriations Acts, to pay any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title);
(5) for the purposes specified in subsection (d) under the conditions provided therein;
(6) for carrying out the program under section 4022(b) of this title;
(7) for transfers to the National Flood Mitigation Fund, but only to the extent provided in section 4104d(b)(1) of this title; and
(8) for carrying out section 4104(f) of this title.
(b) Credits to Fund
The fund shall be credited with—
(1) such funds borrowed in accordance with the authority provided in section 4016 of this title as may from time to time be deposited in the fund;
(2) premiums, fees, or other charges which may be paid or collected in connection with the excess loss reinsurance coverage provided under section 4055 of this title;
(3) such amounts as may be advanced to the fund from appropriations in order to maintain the fund in an operative condition adequate to meet its liabilities;
(4) interest which may be earned on investments of the fund pursuant to subsection (c);
(5) such sums as are required to be paid to the Administrator under section 4015(d) of this title; and
(6) receipts from any other operations under this chapter (including premiums under the conditions specified in subsection (d), and salvage proceeds, if any, resulting from reinsurance coverage).
(c) Investment of moneys in obligations issued or guaranteed by United States
If, after—
(1) all outstanding obligations of the fund have been liquidated, and
(2) any outstanding amounts which may have been advanced to the fund from appropriations authorized under section 4127(a)(2)(B) of this title have been credited to the appropriation from which advanced, with interest accrued at the rate prescribed under section 2414(e) of this title, as in effect immediately prior to August 1, 1968,
the Administrator determines that the moneys of the fund are in excess of current needs, he may request the investment of such amounts as he deems advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States.
(d) Availability of Fund if operation of program is carried out through facilities of Federal Government
In the event the Administrator makes a determination in accordance with the provisions of section 4071 of this title that operation of the flood insurance program, in whole or in part, should be carried out through the facilities of the Federal Government, the fund shall be available for all purposes incident thereto, including—
(1) cost incurred in the adjustment and payment of any claims for losses, and
(2) payment of applicable operating costs set forth in the schedules prescribed under section 4018 of this title,
for so long as the program is so carried out, and in such event any premiums paid shall be deposited by the Administrator to the credit of the fund.
(e) Annual budget
(f) Availability of funds dependent on future appropriations acts
(Pub. L. 90–448, title XIII, § 1310, Aug. 1, 1968, 82 Stat. 577; Pub. L. 97–35, title III, § 341(c), Aug. 13, 1981, 95 Stat. 419; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 98–479, title II, § 203(j)(1), Oct. 17, 1984, 98 Stat. 2231; Pub. L. 100–242, title V, § 545(d), Feb. 5, 1988, 101 Stat. 1942; Pub. L. 101–508, title II, § 2302(e)(3), Nov. 5, 1990, 104 Stat. 1388–24; Pub. L. 103–325, title V, §§ 542, 554(b), 577(h), Sept. 23, 1994, 108 Stat. 2269, 2274, 2283; Pub. L. 108–264, title I, §§ 102(b), 104(b), June 30, 2004, 118 Stat. 721, 723; Pub. L. 112–141, div. F, title II, §§ 100225(d), 100238(b)(1), July 6, 2012, 126 Stat. 941, 958; Pub. L. 113–89, § 18(b), Mar. 21, 2014, 128 Stat. 1027.)

CITE AS: 42 USC 4017

§ 4017a. Reserve Fund
(a) Establishment of Reserve FundIn carrying out the flood insurance program authorized by this subchapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Reserve Fund (in this section referred to as the “Reserve Fund”) which shall—
(1) be an account separate from any other accounts or funds available to the Administrator; and
(2) be available for meeting the expected future obligations of the flood insurance program, including—
(A) the payment of claims;
(B) claims adjustment expenses; and
(C) the repayment of amounts outstanding under any note or other obligation issued by the Administrator under section 4016(a) of this title.
(b) Reserve ratioSubject to the phase-in requirements under subsection (d), the Reserve Fund shall maintain a balance equal to—
(1) 1 percent of the sum of the total potential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year; or
(2) such higher percentage as the Administrator determines to be appropriate, taking into consideration any circumstance that may raise a significant risk of substantial future losses to the Reserve Fund.
(c) Maintenance of reserve ratio
(1) In generalThe Administrator shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal year necessary—
(A) to maintain the reserve ratio required under subsection (b); and
(B) to achieve such reserve ratio, if the actual balance of such reserve is below the amount required under subsection (b).
(2) ConsiderationsIn exercising the authority granted under paragraph (1), the Administrator shall consider—
(A) the expected operating expenses of the Reserve Fund;
(B) the insurance loss expenditures under the flood insurance program;
(C) any investment income generated under the flood insurance program; and
(D) any other factor that the Administrator determines appropriate.
(3) Limitations
(A) Rates
(B) Use of additional annual insurance premiums
(4) Deposit of premium surcharges
(d) Phase-in requirementsThe phase-in requirements under this subsection are as follows:
(1) In general
(2) Amount satisfied
(3) Exception
(e) Limitation on reserve ratioIn any given fiscal year, if the Administrator determines that the reserve ratio required under subsection (b) cannot be achieved, the Administrator shall submit, on a calendar quarterly basis, a report to Congress that—
(1) describes and details the specific concerns of the Administrator regarding the consequences of the reserve ratio not being achieved;
(2) demonstrates how such consequences would harm the long-term financial soundness of the flood insurance program; and
(3) indicates the maximum attainable reserve ratio for that particular fiscal year.
(f) Investment
(Pub. L. 90–448, title XIII, § 1310A, as added Pub. L. 112–141, div. F, title II, § 100212, July 6, 2012, 126 Stat. 922; amended Pub. L. 113–89, §§ 8(b), 20, Mar. 21, 2014, 128 Stat. 1024, 1028.)

CITE AS: 42 USC 4017a

§ 4018. Operating costs and allowances; definitions
(a) The Administrator shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of establishing—
(1) a current schedule of operating costs applicable both to risk-sharing insurance companies and other insurers and to insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations participating on other than a risk-sharing basis, and
(2) a current schedule of operating allowances applicable to risk-sharing insurance companies and other insurers,
which may be payable in accordance with the provisions of subchapter II, and such schedules shall from time to time be prescribed in regulations.
(b) For purposes of subsection (a)—
(1) the term “operating costs” shall (without limiting such term) include—
(A) expense reimbursements covering the direct, actual, and necessary expenses incurred in connection with selling and servicing flood insurance coverage;
(B) reasonable compensation payable for selling and servicing flood insurance coverage, or commissions or service fees paid to producers;
(C) loss adjustment expenses; and
(D) other direct, actual, and necessary expenses which the Administrator finds are incurred in connection with selling or servicing flood insurance coverage; and
(2) the term “operating allowances” shall (without limiting such term) include amounts for profit and contingencies which the Administrator finds reasonable and necessary to carry out the purposes of this chapter.
(Pub. L. 90–448, title XIII, § 1311, Aug. 1, 1968, 82 Stat. 579; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.)

CITE AS: 42 USC 4018

§ 4019. Payment of claims
(a) In general
(b) Minimum annual deductible
(1) Pre-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Administrator under section 4101 of this title for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be—
(A) $1,500, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B) $2,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(2) Post-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate map published by the Administrator under section 4101 of this title for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be—
(A) $1,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B) $1,250, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(c) Payment of claims to condominium owners
(Pub. L. 90–448, title XIII, § 1312, Aug. 1, 1968, 82 Stat. 579; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, §§ 100210, 100214, July 6, 2012, 126 Stat. 920, 924.)

CITE AS: 42 USC 4019

§ 4020. Dissemination of flood insurance information
The Administrator shall from time to time take such action as may be necessary in order to make information and data available to the public, and to any State or local agency or official, with regard to—
(1) the flood insurance program, its coverage and objectives, and
(2) estimated and chargeable flood insurance premium rates, including the basis for and differences between such rates in accordance with the provisions of section 4015 of this title.
(Pub. L. 90–448, title XIII, § 1313, Aug. 1, 1968, 82 Stat. 579; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.)

CITE AS: 42 USC 4020

§ 4021. Participation in State disaster claims mediation programs
(a) Requirement to participate
(b) Extent of participationIn satisfying the requirements of subsection (a), the Administrator shall require that each representative of the Administrator—
(1) be certified for purposes of the national flood insurance program to settle claims against such program resulting from such disaster in amounts up to the limits of policies under such program;
(2) attend State-sponsored mediation meetings regarding flood insurance claims resulting from such disaster at such times and places as may be arranged by the State;
(3) participate in good-faith negotiations toward the settlement of such claims with policyholders of coverage made available under the national flood insurance program; and
(4) finalize the settlement of such claims on behalf of the national flood insurance program with such policyholders.
(c) Coordination
(d) Qualifications of mediatorsEach State mediator participating in State-sponsored mediation under this section shall be—
(1)
(A) a member in good standing of the State bar in the State in which the mediation is to occur with at least 2 years of practical experience; and
(B) an active member of such bar for at least 1 year prior to the year in which such mediator’s participation is sought; or
(2) a retired trial judge from any United States jurisdiction who was a member in good standing of the bar in the State in which the judge presided for at least 5 years prior to the year in which such mediator’s participation is sought.
(e) Mediation proceedings and documents privileged
(f) Liability, rights, or obligations not affectedParticipation in State-sponsored mediation, as described in this section does not—
(1) affect or expand the liability of any party in contract or in tort; or
(2) affect the rights or obligations of the parties, as established—
(A) in any regulation issued by the Administrator, including any regulation relating to a standard flood insurance policy;
(B) under this chapter; and
(C) under any other provision of Federal law.
(g) Exclusive Federal jurisdiction
(h) Cost limitation
(i) ExceptionIn the case of the occurrence of a major disaster that results in flood damage claims under the national flood insurance program and that does not result in any loss covered by a personal lines residential property insurance policy—
(1) this section shall not apply; and
(2) the provisions of the standard flood insurance policy under the national flood insurance program and the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) and the regulations issued pursuant to such section shall apply exclusively.
(j) Representatives of the Administrator
(Pub. L. 90–448, title XIII, § 1314, as added Pub. L. 112–141, div. F, title II, § 100223, July 6, 2012, 126 Stat. 934.)

CITE AS: 42 USC 4021

§ 4022. State and local land use controls
(a) Requirement for participation in flood insurance program
(1) In general
(2) Agricultural structures
(A) Activity restrictions
Notwithstanding any other provision of law, the adequate land use and control measures required to be adopted in an area (or subdivision thereof) pursuant to paragraph (1) may provide, at the discretion of the appropriate State or local authority, for the repair and restoration to predamaged conditions of an agricultural structure that—
(i) is a repetitive loss structure; or
(ii) has incurred flood-related damage to the extent that the cost of restoring the structure to its predamaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.
(B) Premium rates and coverage
(C) Prohibition on disaster relief
(D) Definitions
For purposes of this paragraph—
(i) the term “agricultural structure” means any structure used exclusively in connection with the production, harvesting, storage, raising, or drying of agricultural commodities; and
(ii) the term “agricultural commodities” means agricultural commodities and livestock.
(b) Community rating system and incentives for community floodplain management
(1) Authority and goals
The Administrator shall carry out a community rating system program, under which communities participate voluntarily—
(A) to provide incentives for measures that reduce the risk of flood or erosion damage that exceed the criteria set forth in section 4102 of this title and evaluate such measures;
(B) to encourage adoption of more effective measures that protect natural and beneficial floodplain functions;
(C) to encourage floodplain and erosion management; and
(D) to promote the reduction of Federal flood insurance losses.
(2) Incentives
(3) Credits
(4) Reports
(c) Replacement of mobile homes on original sites
(1) Community participation
The placement of any mobile home on any site shall not affect the eligibility of any community to participate in the flood insurance program under this chapter and the Flood Disaster Protection Act of 1973 (notwithstanding that such placement may fail to comply with any elevation or flood damage mitigation requirements), if—
(A) such mobile home was previously located on such site;
(B) such mobile home was relocated from such site because of flooding that threatened or affected such site; and
(C) such replacement is conducted not later than the expiration of the 180-day period that begins upon the subsidence (in the area of such site) of the body of water that flooded to a level considered lower than flood levels.
(2) Definition
(Pub. L. 90–448, title XIII, § 1315, Aug. 1, 1968, 82 Stat. 580; Pub. L. 91–152, title IV, § 410(b), Dec. 24, 1969, 83 Stat. 397; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title V, §§ 541, 580, Sept. 23, 1994, 108 Stat. 2268, 2285; Pub. L. 108–264, title I, § 108, June 30, 2004, 118 Stat. 724; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.)

CITE AS: 42 USC 4022

§ 4023. Properties in violation of State and local law

No new flood insurance coverage shall be provided under this chapter for any property which the Administrator finds has been declared by a duly constituted State or local zoning authority, or other authorized public body, to be in violation of State or local laws, regulations, or ordinances which are intended to discourage or otherwise restrict land development or occupancy in flood-prone areas.

(Pub. L. 90–448, title XIII, § 1316, Aug. 1, 1968, 82 Stat. 580; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.)

CITE AS: 42 USC 4023

§ 4024. Coordination with other programs

In carrying out this chapter, the Administrator shall consult with other departments and agencies of the Federal Government, and with interstate, State, and local agencies having responsibilities for flood control, flood forecasting, or flood damage prevention, in order to assure that the programs of such agencies and the flood insurance program authorized under this chapter are mutually consistent.

(Pub. L. 90–448, title XIII, § 1317, Aug. 1, 1968, 82 Stat. 581; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.)

CITE AS: 42 USC 4024

§ 4025. Flood insurance advisory committee
(a) Appointment; duties
(b) Membership
Such committee shall consist of not more than fifteen persons and such persons shall be selected from among representatives of—
(1) the insurance industry,
(2) State and local governments,
(3) lending institutions,
(4) the homebuilding industry, and
(5) the general public.
(c) Compensation and travel expenses
(Pub. L. 90–448, title XIII, § 1318, Aug. 1, 1968, 82 Stat. 581; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.)

CITE AS: 42 USC 4025

§ 4026. Expiration of program

No new contract for flood insurance under this chapter shall be entered into after September 30, 2023.1

1 See Extension of Program note below.

(Pub. L. 90–448, title XIII, § 1319, Aug. 1, 1968, 82 Stat. 581; Pub. L. 93–4, Feb. 2, 1973, 87 Stat. 4; Pub. L. 93–38, June 5, 1973, 87 Stat. 73; Pub. L. 93–234, title I, § 105, Dec. 31, 1973, 87 Stat. 979; Pub. L. 95–60, § 3, June 30, 1977, 91 Stat. 257; Pub. L. 95–80, § 3, July 31, 1977, 91 Stat. 339; Pub. L. 95–128, title VII, § 701(a), Oct. 12, 1977, 91 Stat. 1144; Pub. L. 95–406, § 6(a), Sept. 30, 1978, 92 Stat. 880; Pub. L. 95–557, title III, § 308(a), Oct. 31, 1978, 92 Stat. 2098; Pub. L. 96–153, title VI, § 602(a), Dec. 21, 1979, 93 Stat. 1137; Pub. L. 97–35, title III, § 341(b)(1), Aug. 13, 1981, 95 Stat. 418; Pub. L. 97–289, § 4(a), Oct. 6, 1982, 96 Stat. 1231; Pub. L. 98–35, § 4(a), May 26, 1983, 97 Stat. 198; Pub. L. 98–109, § 5(a), Oct. 1, 1983, 97 Stat. 746; Pub. L. 98–181, title I [title IV, § 451(a)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 99–120, § 4(a)(1), Oct. 8, 1985, 99 Stat. 503; Pub. L. 99–156, § 4(a)(1), Nov. 15, 1985, 99 Stat. 816; Pub. L. 99–219, § 4(a)(1), Dec. 26, 1985, 99 Stat. 1731; Pub. L. 99–267, § 4(a)(1), Mar. 27, 1986, 100 Stat. 74; Pub. L. 99–272, title III, § 3010(a)(1), Apr. 7, 1986, 100 Stat. 106; Pub. L. 99–289, § 1(b), May 2, 1986, 100 Stat. 412; Pub. L. 99–345, § 1, June 24, 1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30, 1986, 100 Stat. 986; Pub. L. 100–122, § 1, Sept. 30, 1987, 101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987, 101 Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327; Pub. L. 100–242, title V, § 541(a), Feb. 5, 1988, 101 Stat. 1939; Pub. L. 101–137, § 1(a), Nov. 3, 1989, 103 Stat. 824; Pub. L. 101–508, title II, § 2302(a), Nov. 5, 1990, 104 Stat. 1388–23; Pub. L. 103–325, title V, § 571(a), Sept. 23, 1994, 108 Stat. 2277; Pub. L. 104–204, title III, Sept. 26, 1996, 110 Stat. 2915; Pub. L. 105–46, § 118, Sept. 30, 1997, 111 Stat. 1157; Pub. L. 105–65, title III, Oct. 27, 1997, 111 Stat. 1377; Pub. L. 105–276, title III, title V, § 599D(a), Oct. 21, 1998, 112 Stat. 2502, 2663; Pub. L. 107–73, title III, Nov. 26, 2001, 115 Stat. 689; Pub. L. 108–3, § 2(a)(2), Jan. 13, 2003, 117 Stat. 7; Pub. L. 108–171, § 2(a)(1), Dec. 6, 2003, 117 Stat. 2064; Pub. L. 108–199, div. H, § 136(a)(1), Jan. 23, 2004, 118 Stat. 442; Pub. L. 108–264, title I, § 101(b), June 30, 2004, 118 Stat. 714; Pub. L. 111–196, § 2(a), July 2, 2010, 124 Stat. 1352; Pub. L. 111–250, § 2(a), Sept. 30, 2010, 124 Stat. 2630; Pub. L. 112–74, div. D, title V, § 573, Dec. 23, 2011, 125 Stat. 985; Pub. L. 112–123, § 1(a), May 31, 2012, 126 Stat. 365; Pub. L. 112–141, div. F, title II, § 100203(b), July 6, 2012, 126 Stat. 916; Pub. L. 115–225, § 2(b), July 31, 2018, 132 Stat. 1624; Pub. L. 115–281, § 2(b), Dec. 1, 2018, 132 Stat. 4191; Pub. L. 115–396, § 2(b), Dec. 21, 2018, 132 Stat. 5296; Pub. L. 116–19, § 2(b), May 31, 2019, 133 Stat. 870; Pub. L. 116–20, title XII, § 1207(b), June 6, 2019, 133 Stat. 901; Pub. L. 116–159, div. A, § 146(b), Oct. 1, 2020, 134 Stat. 718; Pub. L. 117–103, div. O, title I, § 101(b), Mar. 15, 2022, 136 Stat. 787; Pub. L. 117–328, div. AA, title IX, § 901(b), Dec. 29, 2022, 136 Stat. 5551.)

CITE AS: 42 USC 4026

§ 4027. Biennial report to President
(a) In general
(b) Effects of flood insurance program
(Pub. L. 90–448, title XIII, § 1320, Aug. 1, 1968, 82 Stat. 581; Pub. L. 96–470, title II, § 205(b), Oct. 19, 1980, 94 Stat. 2244; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title V, § 581, Sept. 23, 1994, 108 Stat. 2286; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.)

CITE AS: 42 USC 4027

§ 4027a. Report of the Administrator on activities under the National Flood Insurance Program
(1) In general
(2) Timing
(3) ContentsEach report required under paragraph (1) shall include—
(A) the current financial condition and income statement of the National Flood Insurance Fund established under section 4017 of this title, including—
(i) premiums paid into such Fund;
(ii) policy claims against such Fund; and
(iii) expenses in administering such Fund;
(B) the number and face value of all policies issued under the National Flood Insurance Program that are in force;
(C) a description and summary of the losses attributable to repetitive loss structures;
(D) a description and summary of all losses incurred by the National Flood Insurance Program due to—
(i) hurricane related damage; and
(ii) nonhurricane related damage;
(E) the amounts made available by the Administrator for mitigation assistance under section 4104c(c)(4) of this title, as so redesignated by this Act, for the purchase of properties substantially damaged by flood for that fiscal year, and the actual number of flood damaged properties purchased and the total cost expended to purchase such properties;
(F) the estimate of the Administrator as to the average historical loss year, and the basis for that estimate;
(G) the estimate of the Administrator as to the maximum amount of claims that the National Flood Insurance Program would have to expend in the event of a catastrophic year;
(H) the average—
(i) amount of insurance carried per flood insurance policy;
(ii) premium per flood insurance policy; and
(iii) loss per flood insurance policy; and
(I) the number of claims involving damages in excess of the maximum amount of flood insurance available under the National Flood Insurance Program and the sum of the amount of all damages in excess of such amount.
(Pub. L. 112–141, div. F, title II, § 100231(b), July 6, 2012, 126 Stat. 950.)

CITE AS: 42 USC 4027a

§ 4027b. Assessment of claims-paying ability
(1) Assessment
(A) Assessment required
(i) In general
(ii) Private market reinsurance
(iii) First assessment
(B) Considerations
(2) Annual report of the Administrator of activities under the National Flood Insurance Program
The Administrator shall—
(A) include the results of each assessment in the report required under section 4027a of this title; and
(B) not later than 30 days after the date on which the Administrator completes an assessment required under paragraph (1), make the results of the assessment available to the public.
(Pub. L. 112–141, div. F, title II, § 100232(e), July 6, 2012, 126 Stat. 955.)

CITE AS: 42 USC 4027b

§ 4028. John H. Chafee Coastal Barrier Resources System
(a) No new flood insurance coverage may be provided under this chapter on or after October 1, 1983, for any new construction or substantial improvements of structures located on any coastal barrier within the John H. Chafee Coastal Barrier Resources System established by section 3503 of title 16. A federally insured financial institution may make loans secured by structures which are not eligible for flood insurance by reason of this section.
(b) No new flood insurance coverage may be provided under this chapter after the expiration of the 1-year period beginning on November 16, 1990, for any new construction or substantial improvements of structures located in any area identified and depicted on the maps referred to in section 3503(a) of title 16 as an area that is (1) not within the John H. Chafee Coastal Barrier Resources System and (2) is in an otherwise protected area. Notwithstanding the preceding sentence, new flood insurance coverage may be provided for structures in such protected areas that are used in a manner consistent with the purpose for which the area is protected.
(Pub. L. 90–448, title XIII, § 1321, as added Pub. L. 97–35, title III, § 341(d)(1), Aug. 13, 1981, 95 Stat. 419; amended Pub. L. 97–348, § 11(a), Oct. 18, 1982, 96 Stat. 1658; Pub. L. 101–591, § 9, Nov. 16, 1990, 104 Stat. 2938; Pub. L. 106–167, § 3(c)(7), Dec. 9, 1999, 113 Stat. 1804.)

CITE AS: 42 USC 4028

§ 4029. Colorado River Floodway
(a) Renewal and transfer of policies; acquisition of policies after filing of maps
(b) New coverage for new construction or substantial improvements
(c) Establishment of temporary boundaries
(d) Loans by federally supervised, approved, regulated, or insured financial institutions
(Pub. L. 90–448, title XIII, § 1322, as added Pub. L. 99–450, § 12, Oct. 8, 1986, 100 Stat. 1135; amended Pub. L. 100–242, title V, § 545(e), Feb. 5, 1988, 101 Stat. 1942; Pub. L. 103–325, title V, § 512(b), Sept. 23, 1994, 108 Stat. 2257.)

CITE AS: 42 USC 4029

§ 4030. Repealed. Pub. L. 112–141, div. F, title II, § 100225(b), July 6, 2012, 126 Stat. 941

CITE AS: 42 USC 4030

§ 4031. Treatment of certain payments

Assistance provided under a program under this chapter for flood mitigation activities (including any assistance provided under the mitigation pilot program under section 4102a 1

1 See References in Text note below.
of this title, any assistance provided under the mitigation assistance program under section 4104c of this title, and any funding provided under section 4030 1 of this title) with respect to a property shall not be considered income or a resource of the owner of the property when determining eligibility for or benefit levels under any income assistance or resource-tested program that is funded in whole or in part by an agency of the United States or by appropriated funds of the United States.

(Pub. L. 90–448, title XIII, § 1324, as added Pub. L. 109–64, § 1, Sept. 20, 2005, 119 Stat. 1997.)

CITE AS: 42 USC 4031

§ 4032. Treatment of swimming pool enclosures outside of hurricane season
(a) In general
Notwithstanding any other provision of law, including the adequate land use and control measures developed pursuant to section 4102 of this title and applicable to non-one- and two-family structures located within coastal areas, as identified by the Administrator, the following may be permitted:
(1) Nonsupporting breakaway walls in the space below the lowest elevated floor of a building, if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone V on a flood insurance rate map.
(2) Openings in walls in the space below the lowest elevated floor of a building, if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone A on a flood insurance rate map.
(b) Rule of construction
(Pub. L. 90–448, title XIII, § 1325, as added Pub. L. 112–141, div. F, title II, § 100242, July 6, 2012, 126 Stat. 962.)

CITE AS: 42 USC 4032

§ 4033. Designation of Flood Insurance Advocate
(a) In general
(b) Duties and responsibilitiesThe duties and responsibilities of the Flood Insurance Advocate designated under subsection (a) shall be to—
(1) educate property owners and policyholders under the National Flood Insurance Program on—
(A) individual flood risks;
(B) flood mitigation;
(C) measures to reduce flood insurance rates through effective mitigation;
(D) the flood insurance rate map review and amendment process; and
(E) any changes in the flood insurance program as a result of any newly enacted laws (including this Act);
(2) assist policy holders under the National Flood Insurance Program and property owners to understand the procedural requirements related to appealing preliminary flood insurance rate maps and implementing measures to mitigate evolving flood risks;
(3) assist in the development of regional capacity to respond to individual constituent concerns about flood insurance rate map amendments and revisions;
(4) coordinate outreach and education with local officials and community leaders in areas impacted by proposed flood insurance rate map amendments and revisions; and
(5) aid potential policy holders under the National Flood Insurance Program in obtaining and verifying accurate and reliable flood insurance rate information when purchasing or renewing a flood insurance policy.
(Pub. L. 113–89, § 24, Mar. 21, 2014, 128 Stat. 1030.)

CITE AS: 42 USC 4033