HB 1718 — An Act amending Title 40 (Insurance) of the Pennsylvania Consolidated Statutes, providing for flood insurance notification; imposing duties on the Insurance Department; and imposing a penalty.

PRINTER'S NO.   2114

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 1718
                                                Session of
                                                  2025

     INTRODUCED BY RUSNOCK, PROBST, GUZMAN, SANCHEZ, SAMUELSON,
        RIVERA, WEBSTER, HILL-EVANS AND CEPEDA-FREYTIZ, JULY 10, 2025

     REFERRED TO COMMITTEE ON INSURANCE, JULY 10, 2025


                                     AN ACT
 1   Amending Title 40 (Insurance) of the Pennsylvania Consolidated
 2      Statutes, providing for flood insurance notification;
 3      imposing duties on the Insurance Department; and imposing a
 4      penalty.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.    Title 40 of the Pennsylvania Consolidated
 8   Statutes is amended by adding a chapter to read:
 9                                 CHAPTER 52
10                        FLOOD INSURANCE NOTIFICATION
11   Sec.
12   5201.   Purpose of chapter.
13   5202.   Definitions.
14   5203.   Duties of insurers.
15   5204.   Duties of department.
16   5205.   Enforcement.
17   5206.   Penalties.
18   § 5201.   Purpose of chapter.
19      The purpose of this chapter is to require insurers to inform
 1   individuals purchasing or renewing a homeowner's insurance
 2   policy of the availability and cost of flood insurance coverage
 3   to ensure that individuals are informed of the potential risks
 4   and availability and cost of flood insurance coverage.
 5   § 5202.   Definitions.
 6      The following words and phrases when used in this chapter
 7   shall have the meanings given to them in this section unless the
 8   context clearly indicates otherwise:
 9      "Department."   The Insurance Department of the Commonwealth.
10      "Flood insurance policy."    An insurance policy which provides
11   coverage for damage to real or personal property that is caused
12   by flooding.
13      "Homeowner's insurance policy."      An insurance policy which
14   provides coverage for damage to real or personal property should
15   an event considered a covered loss occur. Homeowner's insurance
16   policies may be required by a mortgage lender. The term does not
17   include flood insurance.
18      "Insurer."   An entity licensed by the department that offers,
19   issues or renews a homeowner's insurance policy.
20      "Mortgage lender."    As defined in 7 Pa.C.S. § 6102 (relating
21   to definitions).
22   § 5203.   Duties of insurers.
23      (a)    Notice.--Beginning six months after the effective date
24   of this section, an insurer that issues or renews a homeowner's
25   insurance policy in this Commonwealth shall, contemporaneously
26   with the issuance or renewal of the policy, provide written
27   notice to the policyholder regarding the availability of flood
28   insurance. Written notice under this section shall be provided
29   via mail or electronic communication.
30      (b)    Contents.--The communication provided under this section

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 1   must be sent in a stand-alone manner and not with any other
 2   documents or policy-related materials.
 3   § 5204.    Duties of department.
 4      (a)    Model disclosure.--The department shall create and
 5   distribute a model disclosure form that insurers may use for the
 6   purpose of notifying an individual purchasing or renewing a
 7   homeowner's insurance policy of the ability to purchase flood
 8   insurance. The form provided by the department shall include:
 9             (1)   A statement indicating that homeowner's insurance
10      policies do not typically include flood insurance.
11             (2)   A general explanation of the potential risk of
12      flooding, even outside of official flood zones.
13             (3)   Information on the availability of flood insurance
14      through the National Flood Insurance Program or private
15      insurers, including that some flood insurance policies,
16      including those issued through the National Flood Insurance
17      Program, have a 30-day waiting period before coverage is
18      effective.
19             (4)   The benefits of purchasing a flood insurance policy,
20      including that flood insurance may allow an individual to
21      receive higher claim payments than they would otherwise
22      receive through disaster assistance, and some individuals may
23      be able to receive both.
24             (5)   An estimate of the cost of obtaining flood insurance
25      for the property for which the individual is purchasing or
26      renewing a homeowner's insurance policy for, or guidance on
27      how to obtain an estimate.
28             (6)   Any other information the department deems necessary
29      to ensure that an individual purchasing or renewing a
30      homeowner's insurance policy is notified of the purpose of

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 1      flood insurance and the ability to purchase a flood insurance
 2      policy.
 3      (b)    Information required.--An insurer who chooses not to use
 4   the model disclosure form provided by the department shall
 5   include the information required under this section in the
 6   written notice required to be provided under section 5203
 7   (relating to duties of insurers).
 8   § 5205.   Enforcement.
 9      The department shall enforce the provision of this chapter
10   and may promulgate rules and regulations as necessary to
11   implement the provisions of this chapter.
12   § 5206.   Penalties.
13      The Insurance Commissioner may impose a penalty of no more
14   than $10,000 for each violation of this chapter.
15      Section 2.   This act shall take effect in 180 days.




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