Flood Insurance: Coverage for Homes at Risk of Shoreline Erosion Collapse
This Act expands the National Flood Insurance Program (NFIP) to cover structures along shorelines of lakes or other bodies of water that face imminent collapse or subsidence due to erosion. If a state or local authority deems the structure unsafe, owners can receive funds for proper demolition or relocation, providing financial relief against the inevitable loss of property. Payments are capped at $250,000 and require the structure to have been covered by flood insurance for a specified period.
Key points
New Coverage: NFIP now includes coverage for damage and loss resulting from shoreline erosion or undermining that causes imminent collapse or subsidence of insured structures.
Financial Aid for Demolition or Relocation: Owners can receive up to 40% of the structure's value upfront for demolition or relocation, with the remainder paid upon completion (within 6 months) and prior to collapse.
Payment Limits and Requirements: The maximum claim is $250,000, and the coverage does not include loss of contents. The structure must have been covered by NFIP for at least 12 months or 4 continuous years prior to the threat certification.
Future Assistance Ban: Once assistance is provided for demolition or relocation, the same structure or any new structure on the remaining land parcel will be ineligible for future NFIP coverage or other federal disaster assistance.
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