US Code

Public Law 119-73 (01/23/2026)

42 U.S.C. § 4015

Chargeable premium rates

(a)

Establishment; terms and conditions

section 4014 of this titleOn the basis of estimates made under , and such other information as may be necessary, the Administrator shall from time to time prescribe, after providing notice—
(1)
section 4012 of this titlesection 4014(a)(1) of this title chargeable premium rates for any types and classes of properties for which insurance coverage shall be available under (at less than the estimated risk premium rates under , where necessary), and
(2)
the terms and conditions under which, and the areas (including subdivisions thereof) within which, such rates shall apply.
(b)

Considerations for rates

Such rates shall, insofar as practicable, be—
(1)
based on a consideration of the respective risks involved, including differences in risks due to land use measures, flood-proofing, flood forecasting, and similar measures;
(2)
adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses, or, if less than such amount, consistent with the objective of making flood insurance available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with the purposes of this chapter;
(3)
section 4014(a) of this titlesection 4101 of this title adequate, together with the fee under paragraph (1)(B)(iii) or (2) of , to provide for any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under );
(4)
section 4014(a)(1) of this titlesection 4014(a)(2) of this title stated so as to reflect the basis for such rates, including the differences (if any) between the estimated risk premium rates under and the estimated rates under ; and
(5)
adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.
(c)

Actuarial rate properties

section 4014(a)(1) of this titleSubject only to the limitations provided under paragraphs (1) and (2), the chargeable rate shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under with respect to the following properties:
(1)

Post-firm properties

section 4101 of this titleAny property the construction or substantial improvement of which the Administrator determines has been started after , or started after the effective date of the initial rate map published by the Administrator under paragraph (2) of for the area in which such property is located, whichever is later, except that the chargeable rate for properties under this paragraph shall be subject to the limitation under subsection (e).

(2)

Certain leased coastal and river properties

Any property leased from the Federal Government (including residential and nonresidential properties) that the Administrator determines is located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure.

(d)

Payment of certain sums to Administrator; deposits in Fund

section 4014(a) of this titlesection 4017 of this titleWith respect to any chargeable premium rate prescribed under this section, a sum equal to the portion of the rate that covers any administrative expenses of carrying out the flood insurance and floodplain management programs which have been estimated under paragraphs (1)(B)(ii) and (1)(B)(iii) of or paragraph (2) of such section (including the fees under such paragraphs), shall be paid to the Administrator. The Administrator shall deposit the sum in the National Flood Insurance Fund established under .

(e)

Annual limitation on premium increases

Except with respect to properties described under paragraph (2) of subsection (c), and notwithstanding any other provision of this chapter—
(1)
the chargeable risk premium rate for flood insurance under this chapter for any property may not be increased by more than 18 percent each year, except—
(A)
as provided in paragraph (4);
(B)
section 4014(g) of this title in the case of property identified under ; or
(C)
in the case of a property that—
(i)
section 4022(b) of this title is located in a community that has experienced a rating downgrade under the community rating system program carried out under ;
(ii)
is covered by a policy with respect to which the policyholder has—
(I)
decreased the amount of the deductible; or
(II)
increased the amount of coverage; or
(iii)
was misrated;
(2)
section 4014(a)(2) of this titlesection 4014(a)(1) of this title the chargeable risk premium rates for flood insurance under this chapter for any properties initially rated under within any single risk classification, excluding properties for which the chargeable risk premium rate is not less than the applicable estimated risk premium rate under , shall be increased by an amount that results in an average of such rate increases for properties within the risk classification during any 12-month period of not less than 5 percent of the average of the risk premium rates for such properties within the risk classification upon the commencement of such 12-month period;
(3)
the chargeable risk premium rates for flood insurance under this chapter for any properties within any single risk classification may not be increased by an amount that would result in the average of such rate increases for properties within the risk classification during any 12-month period exceeding 15 percent of the average of the risk premium rates for properties within the risk classification upon the commencement of such 12-month period; and
(4)
section 4014(a)(2) of this title the chargeable risk premium rates for flood insurance under this chapter for any properties described in subparagraphs (A) through (E) of shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under paragraph (3).
(f)

Adjustment of premium

Notwithstanding any other provision of law, if the Administrator determines that the holder of a flood insurance policy issued under this chapter is paying a lower premium than is required under this section due to an error in the flood plain determination, the Administrator may only prospectively charge the higher premium rate.

(g)

Frequency of premium collection

section 4012a of this titleWith respect to any chargeable premium rate prescribed under this section, the Administrator shall provide policyholders that are not required to escrow their premiums and fees for flood insurance as set forth under with the option of paying their premiums annually or monthly.

(h)

Rule of construction

For purposes of this section, the calculation of an “average historical loss year”—
(1)
includes catastrophic loss years; and
(2)
shall be computed in accordance with generally accepted actuarial principles.
(i)

Rates for properties newly mapped into areas with special flood hazards

Notwithstanding subsection (f), the premium rate for flood insurance under this chapter that is purchased on or after —
(1)
on a property located in an area not previously designated as having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood insurance map, becomes designated as such an area; and
(2)
section 4014 of this title where such flood insurance premium rate is calculated under subsection (a)(1) of ,
section 4014 of this titleshall for the first policy year be the preferred risk premium for the property and upon renewal shall be calculated in accordance with subsection (e) of this section until the rate reaches the rate calculated under subsection (a)(1) of .
(j)

Premiums and reports

In setting premium risk rates, in addition to striving to achieve the objectives of this chapter the Administrator shall also strive to minimize the number of policies with annual premiums that exceed one percent of the total coverage provided by the policy. For any policies premiums that exceed this one percent threshold, the Administrator shall report such exceptions to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(k)

Consideration of mitigation methods

section 4102(d) of this titleIn calculating the risk premium rate charged for flood insurance for a property under this section, the Administrator shall take into account the implementation of any mitigation method identified by the Administrator in the guidance issued under .

(l)

Clear communications

The Administrator shall clearly communicate full flood risk determinations to individual property owners regardless of whether their premium rates are full actuarial rates.

(m)

Protection of small businesses, non-profits, houses of worship, and residences

(1)

Report

1
1 See References in Text note below.
section 4014(a)(2) of this titlesection 4015a of this titleNot later than 18 months after , and semiannually thereafter, the Administrator shall monitor and report to Committee on Financial Services of the House Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, the Administrator’s assessment of the impact, if any, of the rate increases required under subparagraphs (A) and (D) of and the surcharges required under on the affordability of flood insurance for—
(A)
small businesses with less than 100 employees;
(B)
non-profit entities;
(C)
houses of worship; and
(D)
residences with a value equal to or less than 25 percent of the median home value of properties in the State in which the property is located.
(2)

Recommendations

If the Administrator determines that the rate increases or surcharges described in paragraph (1) are having a detrimental effect on affordability, including resulting in lapsed policies, late payments, or other criteria related to affordability as identified by the Administrator, for any of the properties identified in subparagraphs (A) through (D) of such paragraph, the Administrator shall, not later than 3 months after making such a determination, make such recommendations as the Administrator considers appropriate to improve affordability to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.

Pub. L. 90–448, title XIII, § 130882 Stat. 576Pub. L. 93–234, title I, § 10387 Stat. 978Pub. L. 98–181, title I97 Stat. 1229Pub. L. 101–508, title II, § 2302(e)(2)104 Stat. 1388–24Pub. L. 103–325, title V, § 572(a)108 Stat. 2277Pub. L. 108–264, title I, § 106118 Stat. 724Pub. L. 112–123, § 2(b)126 Stat. 365Pub. L. 112–141, div. F, title II126 Stat. 918Pub. L. 113–89128 Stat. 1022(, , ; , , ; [title IV, § 451(d)(1)], , ; , , ; , , ; , title II, § 209, , , 727; , , ; , §§ 100205(c), (d), 100207, 100211, 100238(b)(1), , , 919, 921, 958; , §§ 4(a), 5–7, 11(a), 26(b), 28, 29, , , 1023, 1025, 1033.)

Editorial Notes

References in Text

Pub. L. 90–44882 Stat. 572section 4001 of this titleThis chapter, referred to in subsecs. (b)(2), (e), (i), and (j), was in the original a reference to “this title” meaning title XIII of , , , known as the National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 90–44882 Stat. 572section 4001 of this titleThis chapter, referred to in subsec. (f), was in the original “this Act”, and was translated as reading “this title”, meaning title XIII of , , , known as the National Flood Insurance Act of 1968, which is classified principally to this chapter, to reflect the probable intent of Congress. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 93–23487 Stat. 975section 4001 of this titleThe Flood Disaster Protection Act of 1973, referred to in subsec. (h), is , , . For complete classification of this Act to the Code, see Short Title of 1973 Amendment note set out under and Tables.

Pub. L. 112–141126 Stat. 916section 4001 of this titleThe Biggert-Waters Flood Insurance Reform Act of 2012, referred to in subsec. (h), is subtitle A (§§ 100201–100249) of title II of div. F of , , . For complete classification of this Act to the Code, see Short Title of 2012 Amendment note set out under and Tables.

Pub. L. 113–89, referred to in subsec. (m)(1), was in the original “the date of the enactment of this section”, and was translated as reading “the date of the enactment of this subsection”, meaning the date of enactment of , which enacted subsec. (m), to reflect the probable intent of Congress.

Amendments

Pub. L. 113–89, § 5(1)2014—Subsec. (e). , struck out “, the chargeable risk premium rates for flood insurance under this chapter for any properties” before dash at end of introductory provisions.

Pub. L. 113–89, § 5(5)Subsec. (e)(1), (2). , added pars. (1) and (2). Former pars. (1) and (2) redesignated (3) and (4), respectively.

Pub. L. 113–89, § 5(2), (3), inserted “the chargeable risk premium rates for flood insurance under this chapter for any properties” at beginning.

Pub. L. 113–89, § 5(4)Subsec. (e)(3). , (6), redesignated par. (1) as (3) and substituted “15 percent” for “20 percent”.

Pub. L. 113–89, § 5(4)Subsec. (e)(4). , (7), redesignated par. (2) as (4) and substituted “paragraph (3)” for “paragraph (1)”.

Pub. L. 113–89, § 11(a)Subsec. (g). , substituted “annually or monthly” for “either annually or in more frequent installments”.

Pub. L. 113–89, § 4(a)Subsec. (h). , redesignated subsec. (i) as (h) and struck out former subsec. (h) which related to premium adjustment to reflect current risk of flood.

Pub. L. 113–89, § 6Subsec. (i). , added subsec. (i). Former subsec. (i) redesignated (h).

Pub. L. 113–89, § 7Subsec. (j). , added subsec. (j).

Pub. L. 113–89, § 26(b)Subsec. (k). , added subsec. (k).

lPub. L. 113–89, § 28lSubsec. (). , added subsec. ().

Pub. L. 113–89, § 29Subsec. (m). , added subsec. (m).

Pub. L. 112–141, § 100238(b)(1)2012—Subsec. (a). , substituted “Administrator” for “Director” in introductory provisions.

Pub. L. 112–141, § 100211(1)section 4025 of this titlesection 4051 of this title, in introductory provisions, substituted “prescribe, after providing notice” for “, after consultation with the advisory committee authorized under , appropriate representatives of the pool formed or otherwise created under , and appropriate representatives of the insurance authorities of the respective States, prescribe by regulation”.

Pub. L. 112–141, § 100211(2)Subsec. (b)(5). , added par. (5).

Pub. L. 112–141, § 100238(b)(1)Subsecs. (c), (d). , substituted “Administrator” for “Director” wherever appearing.

Pub. L. 112–141, § 100205(c)(1)Subsec. (e). , struck out “or (3)” after “paragraph (2)” and inserted “any properties” after “under this chapter for” in introductory provisions.

Pub. L. 112–123 substituted “under this chapter for—” for “under this chapter for”, inserted par. (1) designation before “any properties”, and added par. (2).

Pub. L. 112–141, § 100205(c)(2)Subsec. (e)(1). , substituted “within any single” for “any properties within any single” and “20 percent” for “10 percent”.

Pub. L. 112–141, § 100205(c)(3)section 4014(a)(2) of this titleSubsec. (e)(2). , added par. (2) and struck out former par. (2) which read as follows: “any residential properties which are not the primary residence of an individual, as described in , shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under paragraph (1).”

Pub. L. 112–141, § 100238(b)(1)Subsec. (f). , substituted “Administrator” for “Director” in two places.

Pub. L. 112–141, § 100205(d)Subsec. (g). , added subsec. (g).

Pub. L. 112–141, § 100207Subsec. (h). , added subsec. (h).

Pub. L. 112–141, § 100211(3)Subsec. (i). , added subsec. (i).

Pub. L. 108–264, § 106(a)section 4101 of this titlesection 4014(a)(1) of this title2004—Subsec. (c). , added subsec. (c) and struck out former subsec. (c) which read as follows “Subject only to the limitation under subsection (e) of this section, the chargeable rate with respect to any property, the construction or substantial improvements of which the Director determines has been started after , or the effective date of the initial rate map published by the Director under paragraph (2) of for the area in which such property is located, whichever is later, shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under .”

Pub. L. 108–264, § 106(b)Subsec. (e). , substituted “Except with respect to properties described under paragraph (2) or (3) of subsection (c), and notwithstanding” for “Notwithstanding”.

Pub. L. 108–264, § 209Subsec. (f). , added subsec. (f).

Pub. L. 103–325, § 572(a)(1)1994—Subsec. (c). , substituted “Subject only to the limitation under subsection (e) of this section” for “Notwithstanding any other provision of this chapter”.

Pub. L. 103–325, § 572(a)(2)Subsec. (e). , added subsec. (e).

Pub. L. 101–508, § 2302(e)(2)(A)1990—Subsec. (b)(3), (4). , added par. (3) and redesignated former par. (3) as (4).

Pub. L. 101–508, § 2302(e)(2)(B)Subsec. (d). , added subsec. (d) and struck out former subsec. (d) which read as follows: “In the event any chargeable premium rate prescribed under this section—

section 4014(a)(1) of this title“(1) is a rate which is not less than the applicable estimated risk premium rate under , and

section 4014(a)(1)(B) of this title“(2) includes any amount for administrative expenses of carrying out the flood insurance program which have been estimated under clause (ii) of ,

section 4017 of this titlea sum equal to such amount shall be paid to the Director, and he shall deposit such sum in the National Flood Insurance Fund established under .”

Pub. L. 98–1811983—Subsecs. (a), (c), (d). substituted “Director” for “Secretary” wherever appearing.

Pub. L. 93–234section 4101 of this titlesection 4101 of this title1973—Subsec. (c). substituted “started after , or the effective date of the initial rate map published by the Secretary under paragraph (2) of for the area in which such property is located, whichever is later” for “started after the identification of the area in which such property is located has been published under paragraph (1) of ”.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–89, § 4(b)128 Stat. 1022

Public Law 112–141126 Stat. 957“The amendments made by subsection (a) [amending this section] shall take effect as if enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012 ([subtitle A of title II of div. F of] ; [sic]).”
, , , provided that:

Effective Date of 2012 Amendment

Pub. L. 112–123, § 2(c)126 Stat. 365

42 U.S.C. 4015(e)(2)“The first increase in chargeable risk premium rates for residential properties which are not the primary residence of an individual under section 1308(e)(2) of the National Flood Insurance Act of 1968 [former ], as added by this Act, shall take effect on , and the chargeable risk premium rates for such properties shall be increased by 25 percent each year thereafter, as provided in such section 1308(e)(2).”
, , , provided that:

Pub. L. 112–141Construction of Amendment by

Pub. L. 112–141, div. F, title II, § 100205(e)126 Stat. 919

section 4014 of this titlesection 4014 of this titlePublic Law 112–123“Nothing in this section [amending this section and and enacting provisions set out as a note under ] or the amendments made by this section may be construed to affect the requirement under section 2(c) of the Act entitled ‘An Act to extend the National Flood Insurance Program, and for other purposes’, approved () [set out above], that the first increase in chargeable risk premium rates for residential properties which are not the primary residence of an individual take effect on .”
, , , provided that:

Effective Date

section 1377 of Pub. L. 90–448section 4001 of this titleSection effective 120 days following , or such later date prescribed by the Secretary but in no event more than 180 days following , see , set out as a note under .

Transfer of Functions

section 315(a)(1) of Title 6For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see , Domestic Security.

section 542 of Title 6For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of , as modified, set out as a note under .

Implementation

Pub. L. 113–89, § 11(b)128 Stat. 1025

42 U.S.C. 4015(g)“The Administrator [of the Federal Emergency Management Agency] shall implement the requirement under section 1308(g) of the National Flood Insurance Act of 1968 [], as amended by subsection (a), not later than the expiration of the 18-month period beginning on the date of the enactment of this Act [].”
, , , provided that:

Limitation on Premiums

Pub. L. 101–508, title II, § 2302(e)(5)104 Stat. 1388–25section 541(d) of Pub. L. 100–242, , , provided that, notwithstanding , formerly set out below, premium rates charged for flood insurance under any program established pursuant to this chapter could be increased by more than 10 percent during fiscal year 1991, with certain exceptions.

Pub. L. 100–242, title V, § 541(d)101 Stat. 1939Pub. L. 101–137, § 1(d)103 Stat. 824Pub. L. 101–508, title II, § 2302(c)104 Stat. 1388–23Pub. L. 103–325, title V, § 572(b)108 Stat. 2278, , , as amended by , , ; , , , limited increases in premium rates charged for flood insurance under programs established pursuant to this chapter during period beginning , and ending , to prorated annual rate of 10 percent, prior to repeal by , , .

Pub. L. 98–181, title I97 Stat. 1229 [title IV, § 451(g)(1)], , , provided that premium rates charged for flood insurance under any program established pursuant to this chapter could not be increased during the period beginning , and ending .