I 

118TH CONGRESS 

1ST SESSION H. R. 1309 

To require the use of replacement cost value in determining the premium 

rates for flood insurance coverage under the National Flood Insurance 

Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 1, 2023 

Mr. LUETKEMEYER introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To require the use of replacement cost value in determining 

the premium rates for flood insurance coverage under 

the National Flood Insurance Act, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. USE OF REPLACEMENT COST IN DETERMINING 

4 PREMIUM RATES. 

5 (a) STUDY OF RISK RATING REDESIGN FLOOD IN6 SURANCE PREMIUM RATING OPTIONS.— 


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1 (1) STUDY.—The Administrator of the Federal 

2 Emergency Management Agency shall conduct a 

3 study to— 

4 (A) evaluate insurance industry best prac5 tices for risk rating and classification, including 

6 practices related to replacement cost value in 

7 premium rate estimations; 

8 (B) assess options, methods, and strategies 

9 for including replacement cost value in the Ad10 ministrator’s estimates under section 

11 1307(a)(1) of the National Flood Insurance Act 

12 of 1968 (42 U.S.C. 4014(a)(1)); 

13 (C) provide recommendations for including 

14 replacement cost value in the estimate of the 

15 risk premium rates for flood insurance under 

16 such section 1307(a)(1); 

17 (D) identify an appropriate methodology to 

18 incorporate replacement cost value into the Ad19 ministrator’s estimates under such section 

20 1307(a)(1); and 

21 (E) develop a feasible implementation plan 

22 and projected timeline for including replace23 ment cost value in the estimates of risk pre24 mium rates for flood insurance made available 

25 under the National Flood Insurance Program. 


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1 (2) REPORT.— 

2 (A) REQUIREMENT.—Not later than the 

3 expiration of the 12-month period beginning on 

4 the date of the enactment of this Act, the Ad5 ministrator shall submit to the Committee on 

6 Financial Services of the House of Representa7 tives and the Committee on Banking, Housing, 

8 and Urban Affairs of the Senate a report that 

9 contains the results and conclusions of the 

10 study required under paragraph (1). 

11 (B) CONTENTS.—The report submitted 

12 under subparagraph (A) shall include— 

13 (i) an analysis of the recommenda14 tions resulting from the study under para15 graph (1) and any potential impacts on the 

16 National Flood Insurance Program, includ17 ing cost considerations; 

18 (ii) a description of any actions taken 

19 by the Administrator to implement the 

20 study recommendations; and 

21 (iii) a description of any study rec22 ommendations that have been deferred or 

23 not acted upon, together with a statement 

24 explaining the reasons for such deferral or 

25 inaction. 


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1 (b) USE OF REPLACEMENT COST VALUE IN PRE2 MIUM RATES; IMPLEMENTATION.— 

3 (1) ESTIMATED RATES.—Paragraph (1) of sec4 tion 1307(a) of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4014(a)(1)) is amended, in the 

6 matter preceding subparagraph (A), by inserting 

7 after ‘‘flood insurance’’ the following: ‘‘, which shall 

8 incorporate replacement cost value, and’’. 

9 (2) CHARGEABLE RATES.—Subsection (b) of 

10 section 1308 of the National Flood Insurance Act of 

11 1968 (42 U.S.C. 4015(b)) is amended, in the matter 

12 preceding paragraph (1), by inserting after ‘‘Such 

13 rates’’ the following: ‘‘shall incorporate replacement 

14 cost value and’’. 

15 (3) EFFECTIVE DATE.—The amendments under 

16 paragraphs (1) and (2) of this subsection shall be 

17 made upon the expiration of the 12-month period 

18 beginning on the date of the enactment of this Act. 

19 (4) APPLICABILITY AND PHASE-IN.—The Ad20 ministrator of the Federal Emergency Management 

21 Agency shall apply the amendments under para22 graphs (1) and (2) to flood insurance coverage made 

23 available under the National Flood Insurance Act of 

24 1968 for properties located in various geographic re25 gions in the United States such that— 


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1 (A) over the three-year period beginning 

2 upon the expiration of the period referred to in 

3 paragraph (3) of this subsection, the require4 ment under such amendments shall be gradu5 ally phased in geographically throughout the 

6 United States as sufficient information for such 

7 implementation becomes available; and 

8 (B) after the expiration of such period re9 ferred to in subparagraph (A), such amend10 ments shall apply to all flood insurance cov11 erage made available under the National Flood 

12 Insurance Act of 1968. 

Æ 


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