Section 1 Short title
This Act may be cited as the “Flood Insurance Flexibility Act of 2014”.
Flood Insurance Flexibility Act of 2014
A BILL
To amend the National Flood Insurance Act of 1968 to provide for flood insurance policies with higher deductibles and lower rates.
Sec. 2 Optional high-deductible policies for certain properties
Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the following new subsection:
“(d) Optional high-Deductible policies
“(1) Option—The Administrator shall make flood insurance coverage available for properties, at the option of the insured, having premiums and deductibles in the amounts provided under paragraph (2).
“(2) High-deductibles; risk premium rate—Flood insurance coverage made available pursuant to this subsection for a property shall—
“(A) have an annual loss-deductible for damage to the covered property in an amount not less than $10,000 (as such amount is adjusted for inflation to the nearest $1,000 by the Administrator, using such index as the Administrator determines is appropriate), and the Administrator may make coverage available having such higher loss-deductible amounts as the Administrator considers feasible and appropriate; and
“(B) subject to any other provision of this Act, have a chargeable risk premium rate that, as determined by the Administrator, accurately reflects the current risk of flood to such property and the deductible under such coverage pursuant to subparagraph (A).”