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PRIOR PRINTER'S NO. 2114 PRINTER'S NO. 2822
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1718
Session of
2025
INTRODUCED BY RUSNOCK, PROBST, GUZMAN, SANCHEZ, SAMUELSON,
RIVERA, WEBSTER, HILL-EVANS, CEPEDA-FREYTIZ, NEILSON, WARREN
AND GREEN, JULY 10, 2025
AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JANUARY 28, 2026
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 40 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 52
FLOOD INSURANCE NOTIFICATION
Sec.
5201. Purpose of chapter.
5202. Definitions.
5203. Duties of insurers.
5204. Duties of department SURPLUS LINES LICENSEES .
5205. Enforcement REGULATIONS .
5206. Penalties.
§ 5201. Purpose of chapter.
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The purpose of this chapter is to require insurers to inform
individuals purchasing or renewing a homeowner's insurance
policy of the availability and cost of flood insurance coverage
to ensure that individuals are informed of the potential risks
and availability and cost of flood insurance coverage. AND
SURPLUS LINES LICENSEES TO SHARE INFORMATION ABOUT FLOOD RISKS
AND FLOOD INSURANCE WITH INDIVIDUALS PURCHASING OR RENEWING A
HOMEOWNER'S INSURANCE POLICY.
§ 5202. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Insurance Department of the Commonwealth.
"Flood insurance policy ." An insurance policy which provides
coverage for damage to real or personal property that is caused
by flooding A NATURAL FLOOD EVENT .
"Homeowner's insurance policy." An insurance policy which
provides coverage for damage to real or personal property should
an event considered a covered loss occur. Homeowner's insurance
policies may be required by a mortgage lender. The term does not
include flood insurance.
"HOMEOWNER'S INSURANCE POLICY." A POLICY OF INSURANCE
COVERING AN OWNER-OCCUPIED PRIVATE RESIDENTIAL PROPERTY THAT
DOES NOT PROVIDE COVERAGE FOR DAMAGE CAUSED BY A NATURAL FLOOD
EVENT.
"Insurer." An entity licensed by the department that offers,
issues or renews a homeowner's insurance policy.
"Mortgage lender." As defined in 7 Pa.C.S. § 6102 (relating
to definitions).
"NATURAL FLOOD EVENT." A GENERAL AND TEMPORARY CONDITION OF
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PARTIAL OR COMPLETE INUNDATION OF TWO OR MORE ACRES OF NORMALLY
DRY LAND AREA OR OF TWO OR MORE PARCELS OF REAL PROPERTY, AT
LEAST ONE OF WHICH IS THE SUBJECT PROPERTY, FROM ANY OF THE
FOLLOWING:
(1) OVERFLOW OF INLAND OR TIDAL WATERS.
(2) UNUSUAL AND RAPID ACCUMULATION OR RUNOFF OF SURFACE
WATERS FROM ANY SOURCE.
(3) MUDFLOW.
(4) COLLAPSE OR SUBSIDENCE OF LAND ALONG THE SHORE OF A
LAKE OR SIMILAR BODY OF WATER AS A RESULT OF EROSION OR
UNDERMINING CAUSED BY WAVES OR CURRENTS OF WATER EXCEEDING
ANTICIPATED CYCLICAL LEVELS.
"SURPLUS LINES HOMEOWNER'S INSURANCE POLICY." A HOMEOWNER'S
INSURANCE POLICY ISSUED BY A NONADMITTED INSURER, AS DEFINED IN
SECTION 1602 OF THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN
AS THE INSURANCE COMPANY LAW OF 1921.
"S URPLUS LINES LICENSEE." A PERSON LICENSED AS A SURPLUS
LINES PRODUCER UNDER SECTION 1615 OF THE INSURANCE COMPANY LAW
OF 1921 TO PLACE SURPLUS LINES INSURANCE WITH NONADMITTED
INSURERS ELIGIBLE TO ACCEPT THE INSURANCE.
§ 5203. Duties of insurers.
(a) Notice.--Beginning six months after the effective date
of this section, DISCLOSURE REQUIRED.--SUBJECT TO SUBSECTION
(B), an insurer that issues or renews a homeowner's insurance
policy in this Commonwealth shall, contemporaneously with the
issuance or renewal of the policy, provide written notice to the
policyholder regarding the availability of flood insurance.
Written notice under this section shall be provided via mail or
electronic communication.
(b) Contents.--The communication provided under this section
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must be sent in a stand-alone manner and not with any other
documents or policy-related materials.
§ 5204. Duties of department.
(a) Model disclosure.--The department shall create and
distribute a model disclosure form that insurers may use for the
purpose of notifying an individual purchasing or renewing a
homeowner's insurance policy of the ability to purchase flood
insurance. The form provided by the department shall include:
(1) A statement indicating that homeowner's insurance
policies do not typically include flood insurance.
(2) A general explanation of the potential risk of
flooding, even outside of official flood zones.
(3) Information on the availability of flood insurance
through the National Flood Insurance Program or private
insurers, including that some flood insurance policies,
including those issued through the National Flood Insurance
Program, have a 30-day waiting period before coverage is
effective.
(4) The benefits of purchasing a flood insurance policy,
including that flood insurance may allow an individual to
receive higher claim payments than they would otherwise
receive through disaster assistance, and some individuals may
be able to receive both.
(5) An estimate of the cost of obtaining flood insurance
for the property for which the individual is purchasing or
renewing a homeowner's insurance policy for, or guidance on
how to obtain an estimate.
(6) Any other information the department deems necessary
to ensure that an individual purchasing or renewing a
homeowner's insurance policy is notified of the purpose of
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flood insurance and the ability to purchase a flood insurance
policy.
(b) Information required.--An insurer who chooses not to use
the model disclosure form provided by the department shall
include the information required under this section in the
written notice required to be provided under section 5203
(relating to duties of insurers).
(B) METHODS OF COMPLIANCE.--
(1) AN INSURER MAY COMPLY WITH THIS SECTION BY PROVIDING
A DISCLOSURE THAT COMPLIES WITH PARAGRAPH (2) OR (3).
(2) A N INSURER MAY PROVIDE THE DISCLOSURE REQUIRED UNDER
SUBSECTION (A) USING A FORM THAT IS DEVELOPED BY THE INSURER
AND THAT CONTAINS AT LEAST THE FOLLOWING INFORMATION:
(I) A STATEMENT INDICATING THAT THE HOMEOWNER'S
INSURANCE POLICY DOES NOT PROVIDE COVERAGE FOR FLOOD
LOSS.
(II) A STATEMENT INDICATING THAT FLOODING IS
POSSIBLE ANYWHERE, EVEN OUTSIDE OFFICIAL FLOOD ZONES.
(III) A STATEMENT INDICATING THAT COVERAGE MAY BE
AVAILABLE THROUGH THE NATIONAL FLOOD INSURANCE PROGRAM.
(IV) A STATEMENT INFORMING THE INSURED THAT THE
INSURED MAY VISIT THE INSURANCE DEPARTMENT'S PUBLICLY
ACCESSIBLE INTERNET WEBSITE FOR MORE INFORMATION ON FLOOD
INSURANCE.
(3) AN INSURER MAY PROVIDE THE DISCLOSURE REQUIRED UNDER
SUBSECTION (A) BY USING THE FOLLOWING MODEL FORM:
PLEASE READ: IMPORTANT INFORMATION ON FLOOD INSURANCE
MANY PROPERTIES IN PENNSYLVANIA ARE EXPERIENCING
INCREASED RISKS REGARDING FLOODING, REGARDLESS OF
WHETHER THE PROPERTY IS IN AN OFFICIAL FLOOD ZONE OR
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NOT. YOU ARE ENCOURAGED TO VISIT THE PENNSYLVANIA
INSURANCE DEPARTMENT'S WEBSITE TO REVIEW INFORMATION
REGARDING FLOOD-RELATED RISK FACTORS. A STANDARD
HOMEOWNER'S INSURANCE POLICY TYPICALLY DOES NOT COVER
DAMAGE CAUSED BY FLOODING. YOU ARE ENCOURAGED TO
SPEAK WITH AN INSURANCE PROFESSIONAL ABOUT WHETHER
YOU ARE COVERED FOR DAMAGE CAUSED BY FLOODING. IF YOU
ARE NOT ALREADY COVERED FOR DAMAGE CAUSED BY
FLOODING, COVERAGE MAY BE AVAILABLE FROM AN INSURANCE
COMPANY OR THROUGH THE NATIONAL FLOOD INSURANCE
PROGRAM.
(C) METHOD OF TRANSMISSION.--AN INSURER SHALL TRANSMIT THE
DISCLOSURE REQUIRED UNDER THIS SECTION THROUGH PHYSICAL MAIL OR
AN ELECTRONIC COMMUNICATION.
(D) C ONTENTS.--
(1) THE DISCLOSURE PROVIDED UNDER THIS SECTION MAY BE
DELIVERED ALONGSIDE THE HOMEOWNER'S INSURANCE POLICY OR OTHER
POLICY-RELATED DOCUMENTS.
(2) THE DISCLOSURE SHALL BE ON ITS OWN PAGE IN 16-POINT
FONT.
(3) AN INSURER MAY PRINT THE DISCLOSURE ON COLORED
PAPER.
(4) AN INSURER MAY DELIVER THE DISCLOSURE THROUGH A
SEPARATE DOCUMENT THAT IS NOT BOUND TO THE POLICY OR OTHER
POLICY-RELATED DOCUMENTS.
(E) EXEMPTION.--AN INSURER IS NOT SUBJECT TO THE DISCLOSURE
REQUIREMENTS UNDER THIS SECTION IF THE HOMEOWNER'S INSURANCE
POLICY PROVIDES FLOOD INSURANCE, INCLUDING THROUGH A RIDER OR
ENDORSEMENT.
§ 5204. DUTIES OF SURPLUS LINES LICENSEES.
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(A) DISCLOSURE REQUIRED.--A SURPLUS LINES LICENSEE THAT
PLACES A SURPLUS LINES HOMEOWNER'S INSURANCE POLICY SHALL,
CONTEMPORANEOUSLY WITH THE PLACEMENT OF THE POLICY, INFORM THE
PROSPECTIVE INSURED OF WHETHER THE SURPLUS LINES HOMEOWNER'S
INSURANCE POLICY PROVIDES COVERAGE FOR FLOOD DAMAGE.
( B) METHOD OF DISCLOSURE.--THE DISCLOSURE REQUIRED UNDER
SUBSECTION (A) SHALL BE PROVIDED IN WRITING.
§ 5205. Enforcement REGULATIONS .
The department shall enforce the provision of this chapter
and may promulgate rules and regulations as necessary AND
APPROPRIATE to implement the provisions of this chapter.
§ 5206. Penalties.
The Insurance Commissioner may impose a penalty of no more
than $10,000 $500 for each A violation of this chapter.
PENALTIES UNDER THIS CHAPTER AGAINST A VIOLATOR MAY NOT EXCEED
$25,000 IN A CALENDAR YEAR.
Section 2. This act shall take effect in 180 days.
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