Summary of HR 5608: Private Flood Insurance Competition

Bill Number: HR 5608

Title: To ensure that Write Your Own companies can sell private flood insurance products that compete with National Flood Insurance Program products.

Status: Introduced in House

Introduced Date: September 26, 2025

Classification: Bill

Purpose and Intent

The primary purpose of HR 5608 is to enhance competition in the flood insurance market by allowing companies participating in the Federal Emergency Management Agency's (FEMA) Write Your Own (WYO) Program to offer private flood insurance products. This legislation aims to provide consumers with more options and potentially lower costs for flood insurance coverage, thereby improving overall market efficiency.

Key Provisions

The bill proposes amendments to Section 1345 of the National Flood Insurance Act of 1968, specifically adding a new subsection (f) that includes the following provisions:

1. Definition of Write Your Own Program:

   • The WYO Program allows private insurance companies to sell flood insurance contracts under their own brand and manage claims associated with those contracts.

2. Removal of Restrictions:

   • The bill prohibits the FEMA Administrator from imposing any conditions that would restrict WYO companies from offering and selling private flood insurance. This includes any limitations on eligibility for participation in the WYO Program or other activities under the National Flood Insurance Program (NFIP).

3. Contractual Agreements:

   • After the enactment of this bill, any agreements made between the FEMA Administrator and insurers participating in the WYO Program cannot include provisions that violate the restrictions outlined in the bill.

Who Would Be Affected

• Insurance Companies: Private insurers participating in the WYO Program will gain the ability to sell private flood insurance products, increasing their market offerings.
• Consumers: Homeowners and property owners seeking flood insurance will have more options to choose from, potentially leading to better coverage and pricing.
• FEMA: The agency will need to adjust its regulatory framework to accommodate the changes in the flood insurance market.

Procedural Aspects

• Committee Referral: The bill was referred to the House Committee on Financial Services on the same day it was introduced.
• Next Steps: The bill will undergo review and discussion within the committee before potentially moving to the House floor for a vote.

Sponsors

• Primary Sponsor: W. Gregory Steube
• Cosponsors: Jimmy Patronis, Mike Ezell

This bill represents a significant shift in the flood insurance landscape, aiming to foster competition and improve consumer choice in the market.