118 
‘‘(C) permits the policyholder to continue 
to live in the structure to which the policy re-
lates; and 
‘‘(D) is carried out under a mitigation 
plan. 
‘‘(2) PENALTY.—If, after the date of enactment 
of the National Flood Insurance Program Reauthor-
ization and Reform Act of 2025, a policyholder 
under the national flood insurance program refuses 
a bona fide offer of assistance with respect to the 
property so insured, the Administrator shall, not-
withstanding any other provision of this title, in-
crease the chargeable risk premium rate for flood in-
surance under this title for the property by 25 per-
cent each year until— 
‘‘(A) the policyholder accepts the bona fide 
offer of assistance; or 
‘‘(B) that chargeable risk premium rate is 
actuarially sound.’’. 
SEC. 306. MULTIPLE STRUCTURE MITIGATION. 
Section 1308A(a) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015a(a)) is amended— 
(1) in the first sentence, by striking ‘‘The Ad-
ministrator’’ and inserting the following: 
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Administrator’’; and 
(2) by adding at the end the following: 
‘‘(2) RELIEF
FOR
SMALL
BUSINESSES
AND 
NONPROFITS.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘covered small business or nonprofit orga-
nization’ means a small business concern (as 
defined in section 3 of the Small Business Act 
(15 U.S.C. 632)) or an organization that is de-
scribed in section 501(c)(3) of the Internal Rev-
enue Code of 1986 and is exempt from taxation 
under section 501(a) of such Code that owns 
not fewer than 3 structures that are located on 
a single property. 
‘‘(B) RELIEF.—The Administrator may 
not impose a surcharge under this section for a 
policy for flood insurance coverage under the 
National Flood Insurance Program for a cov-
ered small business concern or nonprofit organi-
zation with respect to more than 2 detached 
units or buildings located on a single property 
if the covered small business or nonprofit orga-
nization certifies to the Administrator that the 
savings from the surcharge not being imposed 
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shall be used for flood mitigation on the prop-
erty on which the units or buildings are located. 
‘‘(C) RULES.—Not later than 1 year after 
the date of enactment of this paragraph, the 
Administrator shall issue rules establishing the 
process for submitting a certification described 
in subparagraph (B).’’. 
TITLE IV—POLICYHOLDER 
PROTECTION AND FAIRNESS 
SEC. 401. EARTH MOVEMENT FIX AND ENGINEER STAND-
ARDS. 
(a) REBUTTABLE PRESUMPTION FOR FOUNDATION 
AND STRUCTURAL DAMAGE.— 
(1) IN
GENERAL.—Section 1312 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 106(b), is amended by 
inserting after subsection (c) the following: 
‘‘(d) REBUTTABLE PRESUMPTION FOR FOUNDATION 
AND STRUCTURAL DAMAGE.— 
‘‘(1) IN GENERAL.—For the purposes of the 
Administrator determining coverage under the 
standard flood insurance policy under the national 
flood insurance program, a rebuttable presumption 
that physical damage to the foundation of, or struc-
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tural damage to, a structure was not caused by 
earth movement shall apply if— 
‘‘(A) flood caused direct physical change to 
the structure; and 
‘‘(B) there is damage to the foundation of, 
or structural damage to, the structure that was 
not present before the flood, as demonstrated 
by a certification from the policyholder. 
‘‘(2) REBUTTAL.—In determining coverage as a 
result of the rebuttable presumption under para-
graph (1), an insurance company may rebut the pre-
sumption only by providing the Administrator with 
an engineering report that— 
‘‘(A) meets standards issued by the Ad-
ministrator under paragraph (3); and 
‘‘(B) clearly demonstrates that the physical 
damage to the foundation of, or structural dam-
age to, a structure described in paragraph (1) 
was caused directly by earth movement that 
was not— 
‘‘(i) caused by the horizontal pressure 
from standing or slow-moving floodwater 
(commonly known as ‘hydrostatic pres-
sure’); 
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‘‘(ii) caused by the force of floodwater 
that causes the vertical uplift from the un-
derside of a horizontal foundation compo-
nent, such as a concrete slab, footer, or 
structural 
floor 
assembly 
(commonly 
known as ‘buoyancy’); 
‘‘(iii) caused by pressure imposed on 
an object, such as a wall of a building, by 
high-velocity floodwater or waves flowing 
against and around the building (com-
monly known as ‘hydrodynamic force’); 
‘‘(iv) caused by floodwater moving 
along the surface of the ground causing 
soil to suddenly erode or undermine, re-
sulting in failure of a foundation or to one 
of the structural components of the foun-
dation (commonly known as ‘scouring’); or 
‘‘(v) otherwise caused by flood. 
‘‘(3) MINIMUM STANDARDS FOR ENGINEERING 
REPORTS.—The Administrator shall issue minimum 
standards— 
‘‘(A) regarding the form and content of en-
gineering reports used to assist insurance 
claims adjusters with respect to carrying out 
this subsection; and 
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‘‘(B) that— 
‘‘(i) include a requirement that any 
such engineering report shall be signed and 
have a seal affixed by an engineer who is 
licensed in the State in which the property 
to which the claim relates is located; and 
‘‘(ii) are consistent with generally ac-
cepted practices in— 
‘‘(I) the field of forensic engi-
neering; and 
‘‘(II) the insurance industry. 
‘‘(4) DOCUMENTATION
OF
CONDITION
OF 
FOUNDATION.— 
‘‘(A) IN GENERAL.—If the holder of a pol-
icy for flood insurance coverage made available 
under this title documents the condition of the 
foundation of a structure covered by the policy 
with a photograph, video recording, or other-
wise, and submits the documentation to the Ad-
ministrator or the Write Your Own Company 
that sold the policy, as applicable, the Adminis-
trator or Write Your Own Company, respec-
tively, shall keep the documentation and use the 
documentation when adjusting a claim that 
arises under the policy. 
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‘‘(B) NOTICE
TO
POLICYHOLDERS.—The 
Administrator shall notify a policyholder, when 
the policyholder purchases or renews a flood in-
surance policy sold under this title, that the 
policyholder may document the condition of the 
foundation of a structure covered by the policy 
in accordance with subparagraph (A). 
‘‘(5) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to modify the 
terms and conditions of the standard flood insurance 
policy.’’. 
(2) APPLICATION.—The amendment made by 
paragraph (1) shall apply with respect to a claim 
with a date of loss that is on or after the date that 
is 90 days after the date of enactment of this Act. 
(b) REGULATIONS.—Not later than 90 days after the 
date of enactment of this Act, the Administrator shall 
issue the standards required under subsection (d)(3) of 
section 1312 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4019), as added by subsection (a)(1). 
SEC. 402. COVERAGE OF PRE-FIRM CONDOMINIUM BASE-
MENTS AND STUDY ON STREET RAISING. 
(a) BASEMENT CLARIFICATION.— 
(1) IN
GENERAL.—Section 1305 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
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4012) is amended by adding at the end the fol-
lowing: 
‘‘(e) AVAILABILITY OF INSURANCE FOR PRE-FIRM 
CONDOMINIUM BASEMENTS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘pre-FIRM condominium building’ means a condo-
minium building that was not constructed or sub-
stantially improved after the later of— 
‘‘(A) December 31, 1974; or 
‘‘(B) the effective date of the initial flood 
insurance rate map published by the Adminis-
trator under section 1360 for the area in which 
the building is located. 
‘‘(2) COVERAGE.—The Administrator shall offer 
an optional rider to a contract for flood insurance 
made available under this title that covers the base-
ment of a pre-FIRM condominium building that 
serves as a separate residential unit within that con-
dominium building.’’. 
(2) AMENDMENTS TO REGULATIONS.—Not later 
than 180 days after the date of enactment of this 
Act, the Administrator shall make any amendments 
to the regulations of the Federal Emergency Man-
agement Agency that are necessary as a result of the 
amendment made by paragraph (1). 
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(b) STUDY
ON CONSEQUENCES
OF STREET-RAIS-
ING.— 
(1) DEFINITION.—In this subsection, the term 
‘‘affected property’’ means a property containing an 
area— 
(A) the floor of which was located at or 
above grade before the community raised the 
street adjacent to the property; and 
(B) after the street-raising described in 
subparagraph (A), that was designated as a 
basement because of the street-raising. 
(2) STUDY; REPORT.—Not later than 1 year 
after the date of enactment of this Act, the Adminis-
trator shall study and submit to Congress a report 
on the consequences of street-raising on flood insur-
ance coverage for an affected property under the 
National Flood Insurance Program, including the 
cost implications for the property owner. 
SEC. 403. GUIDANCE ON REMEDIATION AND POLICY-
HOLDER DUTIES. 
(a) IN GENERAL.—Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019), as amend-
ed by section 401(a)(1), is amended by inserting after sub-
section (d) the following: 
‘‘(e) GUIDANCE ON MOLD REMEDIATION.— 
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‘‘(1) IN
GENERAL.—The Administrator shall 
issue guidance relating to the identification of rea-
sonable actions that a policyholder of coverage for 
flood insurance made available under this title may 
take to inspect and maintain the property to which 
that coverage applies— 
‘‘(A) after a flood recedes; and 
‘‘(B) in order to avoid damage to the prop-
erty that is caused by mold, mildew, moisture, 
or water. 
‘‘(2) CONSIDERATIONS.—In developing guid-
ance under paragraph (1), the Administrator shall 
consider— 
‘‘(A) any applicable laws and regulations; 
‘‘(B) the terms and conditions of the 
standard flood insurance policy; 
‘‘(C) technical best practices; 
‘‘(D) the costs of remediation in relation to 
the condition of a property described in that 
paragraph; and 
‘‘(E) the actions that the Administrator 
may reasonably expect a policyholder described 
in that paragraph to take, given the likely chal-
lenges faced by the policyholder after a flood. 
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‘‘(3) REGULAR
REVIEW.—The Administrator 
shall— 
‘‘(A) regularly review the guidance issued 
under paragraph (1); and 
‘‘(B) revise the guidance issued under 
paragraph (1) as the Administrator determines 
appropriate. 
‘‘(4) ANNUAL
DISTRIBUTION.—The Adminis-
trator shall provide a copy of the guidance issued 
under paragraph (1) to a policyholder at the time of 
the purchase or renewal of a flood insurance policy 
sold under this title.’’. 
(b) INITIAL ISSUANCE.—Not later than 1 year after 
the date of enactment of this Act, the Administrator shall 
issue the guidance required under subsection (e) of section 
1312 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4019), as added by subsection (a) of this section. 
(c) ACCESSIBILITY, REASONABLENESS, AND DEGREE 
OF DAMAGE.—Section 1312 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4019), as amended by sub-
section (a), is amended by inserting after subsection (e) 
the following: 
‘‘(f) EXCLUSION OF CERTAIN DAMAGE.—For pur-
poses of determining whether damage caused by mold, mil-
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