Senators Ashley Moody (R-FL) and Rick Scott (R-FL) alongside Representatvive Byron Donalds (R-FL) introduced the bicameral Flood Insurance Relief Act (S.2313 and H.R.4494).  The bill would provide amend the Internal Revenue Code of 1986 to provide an above-the-line deduction for flood insurance premiums.  This would result in tax relief for Americans through a non-refundable tax deduction on flood insurance premiums, applying both to premiums paid to the National Flood Insurance Program (NFIP) or to private insurers.  Eligibility is limited to taxpayers with adjusted gross income for the taxable year below $200,000.

Senator Rick Scott said, “Floridians know well that flood insurance can be a crucial but costly asset, and it is unacceptable that many are left struggling to find flood insurance coverage they can afford.”  Senator Ashley Moody said, “As I travel around the Sunshine State, one thing folks continue to tell me is that they are worried about the rising cost of flood insurance.  Congressman Byron Donalds said, “For far too long, the rising cost of flood insurance has crushed hardworking Floridians. This is unacceptable, this must change, and this critical issue must be addressed to ensure our economy works for all Americans. The time for action is now.”

CSFI analysis has found that, since Risk Rating 2.0’s implementation in October 2021, Florida’s NFIP policies-in-force have grown by over 100,000 (or by more than 6%).   Meanwhile, nationally, NFIP has lost over 210,819 (or -4.3%) of policies-in-force in total.

 This differentiation is largely attributable to Senate Bill 2-A passed by the Florida State Legislature in 2022.  The law mandates phased flood coverage for certain properties under Citizens Property Insurance Corporations.  Starting in January 2024, properties with a replacement value of $600,000 or more must have flood insurance. This requirement will gradually extend to all Citizens-covered properties by 2027, regardless of value.