Preventing Environmental Hazards Act of 2025

Financial assistance for demolition: If a structure is condemned or deemed unsafe due to erosion, the Administrator may pay 40 percent of the structure's value initially, and up to 60 percent after the demolition is completed, provided it happens within 6 months (Section 2(a)(1)(A)).

Financial assistance for relocation: For owners who choose to move their home rather than tear it down, the bill allows for payments of up to 40 percent of the structure's value to cover the cost of relocation, including the removal of septic systems (Section 2(a)(1)(B)).

Coverage for various erosion types: The protection applies whether the danger is caused by long-term, chronic erosion or by sudden waves and currents exceeding normal levels (Section 2(a)(1)).

Loss of coverage for contents: Even if a structure is covered for demolition or relocation, the insurance will not pay for any loss or damage to the items inside the home (Section 2(a)(4)(B)).

Limits on total payout: The amount paid for a claim is capped at the lesser of the amount of coverage in the original flood insurance contract or $250,000 (Section 2(a)(4)(A)).

Restriction on future assistance: Once an owner receives assistance for a structure, they can no longer get flood insurance or disaster relief for that structure or any other structure on that same piece of land (Section 2(a)(6)).

Reduced payments for delays: If an owner waits too long—more than six months—or if the structure collapses before they act, the Administrator may limit the payment to only the initial 40 percent (Section 2(a)(2)).

Strict valuation methods: The value of the structure for the purpose of these payments might be limited to the lowest of several different calculation methods, which could result in a lower payout than expected (Section 2(a)(3)).