National Flood Insurance Program Administrative Reform Act of 2025

Preexisting Condition Investigations: A voluntary pilot program would allow policyholders to request investigations or on-site inspections to determine if structural issues might cause future claim denials (Section 2).

Fraud Prevention: The bill establishes penalties for those who knowingly forge reports or submit fraudulent claims, which helps protect the integrity of the program (Section 3).

Enhanced Appeals Process: Policyholders gain the right to appeal decisions regarding the denial or amount of a claim through a formal process that requires a written explanation (Section 4).

Timely Claim Determinations: The bill mandates that the Administrator provide an initial determination on a claim within a 120-day period, ensuring people aren't left waiting indefinitely (Section 5).

Increased Transparency: Improved disclosure requirements ensure policyholders receive a standard disclosure sheet in plain language regarding what is and is not covered by their policy (Section 9).

Access to Information: Policyholders can request true, complete, and unredacted copies of technical assistance reports used to adjust their claims (Section 8).

Enhanced Advocacy: The bill ensures the Office of Flood Insurance Advocate has sufficient staff to perform its duties (Section 11).

Increased Costs for Investigations: Under the pilot program for investigating preexisting conditions, companies may impose a surcharge on policies to cover the costs of these investigations and inspections (Section 2).

Administrative Delays: While the bill sets deadlines for claim approvals, it allows for extensions of the 120-day period due to extraordinary circumstances (Section 5).

Requirement to Exhaust Remedies: Policyholders are required to exhaust all administrative appeal processes before they can take legal action regarding a disputed claim (Section 4).