Increased Cost of Compliance Modernization Act of 2023
Impact
If enacted, the bill would establish a new coverage limit specifically designated for compliance costs related to flood mitigation. This coverage could be up to 40 percent of the maximum flood insurance coverage allowable, thereby providing homeowners with a crucial safety net when faced with immediate compliance needs. Additionally, the bill would explicitly exclude such compliance-related coverage amounts from being considered toward the limits on insurance claims or multiple loss claims, effectively enabling policyholders to seek further assistance without penalties on their existing claims status.
Summary
House Bill 6304, titled the 'Increased Cost of Compliance Modernization Act of 2023,' aims to enhance the coverage available under the National Flood Insurance Program (NFIP) specifically to address costs related to compliance with land use and control measures following flood damage. The bill proposes significant amendments to the existing structure of flood insurance coverage, allowing for better financial support for policyholders who may need to comply with updated or new regulatory requirements after flooding. By doing this, the bill seeks to make it easier for property owners to rebuild and recover from flood damage, thereby promoting overall resilience within flood-prone areas.
Contention
While the bill's objectives focus on providing necessary support for flood recovery, it may also lead to discussions and debates regarding funding mechanisms and the implications for the NFIP's financial viability. Stakeholders concerned with fiscal responsibility may question whether increasing the coverage amounts necessitates additional funding or adjustments in premiums, potentially leading to increased costs for policyholders overall. Moreover, there could be tensions around how the definition and enforcement of compliance requirements might vary across different states, affecting how effectively the bill's provisions are implemented at the local level.