National Flood Insurance Program Administrative Reform Act of 2025

The National Flood Insurance Program Administrative Reform Act of 2025 aims to implement significant administrative reforms to the National Flood Insurance Program (NFIP), primarily to increase fairness and accuracy for policyholders, enhance transparency, and protect taxpayers from program fraud and abuse. The bill addresses various aspects of the program, from claims processing and policy disclosures to oversight and advisory functions. Key provisions enhance policyholder protections by establishing a **pilot program** for Write Your Own (WYO) companies to voluntarily investigate **preexisting structural conditions** in insured properties, aiming to prevent claim denials. It also significantly enhances **policyholder appeals process rights**, requiring the Administrator to establish an appeals process for claim disallowances and issue decisions within 120 days, and sets a **120-day deadline for initial claim approvals** and notifications. To combat fraud and increase transparency, the bill introduces **penalties for knowingly making false statements** or submissions in connection with flood insurance claims, including forging reports or submitting fraudulent claims. It also improves **disclosure requirements for standard flood insurance policies**, mandating a plain-language disclosure sheet and an acknowledgment sheet for policyholders, and requires the disclosure of **unredacted technical assistance reports** to policyholders upon request. Regarding program administration and oversight, the bill mandates **oversight of litigation** conducted by WYO companies to ensure reasonable expenses and compliance, and prohibits the NFIP from newly employing **disbarred attorneys**. It further ensures **sufficient staffing for the Office of the Flood Insurance Advocate** and establishes a **Federal Flood Insurance Advisory Committee** with diverse membership to provide recommendations on various insurance aspects of the NFIP. Finally, the legislation directs the Comptroller General of the United States (GAO) to conduct two studies: one on **claims adjustment practices** within the NFIP compared to other insurance, and another on the **treatment of earth movement and subsidence** under flood insurance coverage. It also requires federal lending regulators to update and reissue **interagency guidance on flood insurance compliance** biennially.