As part of its recent letter to the Justice Department's Anticompetitive Regulations Task Force, NAR recommended several federal agency actions aimed at eliminating longstanding barriers that have impeded the development of a competitive private flood insurance market.
While the National Flood Insurance Program (NFIP) continues to provide essential coverage for the highest-risk properties, private insurers are unable to compete on a level playing field when outdated mapping, NFIP subsidies, and restrictive federal regulations effectively crowd out private market options. As a result, just 4% of U.S. homeowners currently carry flood insurance—far below the estimated 20 million homes at high flood risk.
To address these challenges, NAR recommends:
- Modernize FEMA's maps to cover the full U.S. and show all flood risks with property-level detail, so buyers can make informed decisions inside and outside high-risk zones.
- Continue implementing Risk Rating 2.0 to ensure accurate, property-specific rates as subsidies phase out under the congressionally mandated glidepath.
- Expand mitigation grant programs to help homeowners reduce both flood risk and insurance costs.
- Reform the Write-Your-Own program to allow more qualified private insurers to participate and compete.
- Clarify continuous coverage rules so consumers can switch to private policies without penalty.
NAR emphasizes that consumers deserve choice and access to the best available coverage—whether public or private—to protect against the nation's most costly natural disaster. We will continue advocating for federal solutions that support a more competitive private flood insurance market alongside the NFIP.