Flood Insurance Bill Aims to Provide More Transparency About Premium Rates
Sens. Bill Cassidy (R-La.) and Kirsten Gillibrand (D-N.Y.) today introduced the Flood Insurance Pricing Transparency Act, NAHB-supported legislation that requires the Federal Emergency Management Agency (FEMA) to publish the formulas used to calculate mitigation credits for policyholders under Risk Rating 2.0.
The bill also requires FEMA to release a toolkit that could be used to estimate the cost of insurance for new construction without compromising proprietary information. Sen. John Kennedy (R-La.) is a co-sponsor of the legislation.
FEMA is continuing its plans to allow Risk Rating 2.0 to go into full effect on April 1, 2022. The new flood insurance risk rating methodology will determine how the agency will apply the new rating factors and credit options when determining insurance premiums for policies issued under the National Flood Insurance Program (NFIP).
NAHB is concerned that FEMA will apply this new risk rating without sufficient transparency to allow policyholders to understand how their premiums will be affected and what steps they can take to mitigate flood risks and lower their premiums.
“With FEMA set to institute new National Flood Insurance Program premium rates on April 1 under its Risk Rating 2.0 program, NAHB commends Sens. Bill Cassidy and Kirsten Gillibrand for introducing bipartisan legislation to provide transparency to this process,” said NAHB Chairman Jerry Konter. “By allowing home owners to determine how FEMA sets premium rates for insured properties based on their location, elevation and other factors, this bill will enable consumers to estimate in advance any changes in their premium rates. It also provides property owners the ability to assess if and how much their insurance rates might decline if they take actions to reduce their homes ’risk of flooding.”
The National Flood Insurance Program (NFIP) provides flood insurance for over five million policyholders.
Learn more about NAHB’s advocacy efforts on nahb.org.
Latest from NAHBNow
IBS
Feb 19, 2026
NAHB Honors the Industry’s Top Achievements at The NationalsThe National Association of Home Builders (NAHB) honored top achievements in residential real estate sales, marketing, individual achievement and global excellence at The Nationals℠ Awards Gala (sponsored by Chase) during the NAHB International Builders’ Show in Orlando. Awards were also presented for the 55+ housing, NAHB Honors and Global Innovation award categories.
Economics
Feb 18, 2026
Impact of Affordability Challenges and Demographic Shifts on Housing Trends in 2026Housing affordability has declined significantly in recent years. The deterioration in price-to-income ratio has been a key factor, as home prices have risen 53% since 2019, while median household income has risen only 24%. This has notably decreased the share of first-time home buyers in the market, which dropped to 21% in 2025 from 44% in 1981. Over that same time frame, the median age for first-time buyers reached a record high of 40 in 2025 from 29 in 1981.
Latest Economic News
Economics
Feb 19, 2026
Delinquency Rates Normalize While Credit Card and Student Loan Stress WorsensDelinquent consumer loans have steadily increased as pandemic distortions fade, returning broadly to pre-pandemic levels. According to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York, 4.8% of outstanding household debt was delinquent at the end of 2025, 0.3 percentage points higher than the third quarter of 2025 and 1.2% higher from year-end 2024.
Economics
Feb 18, 2026
Overall Housing Starts Inch Lower in 2025Despite a strong finish in December, single-family home building dipped in 2025 as persistent affordability challenges continued to weigh on the market.
Economics
Feb 18, 2026
How Housing Affordability Conditions Vary Across States and Metro AreasThe NAHB 2026 priced-out estimates show that the housing affordability challenge is widespread across the country. In 39 states and the District of Columbia, over 65% of households are priced out of the median-priced new home market. This indicates a significant disconnect between higher new home prices, elevated mortgage rates, and household incomes.