Community Flood Resilience Act

This bill directs the Federal Emergency Management Agency (FEMA) to allow states and communities receiving certain flood mitigation grants to use up to 15% of those funds each year for five years to pay premiums on community-based parametric flood insurance policies from the private sector, which pay out automatically when predefined flood metrics are met.

Sec. 3, Use of flood mitigation grant amounts for parametric insurance premiums: For five years after enactment, FEMA must let states or communities receiving Flood Mitigation Assistance grants use up to 15% of those funds annually for premiums on private parametric flood insurance policies that have objective trigger conditions, agreed payout timelines, and disburse funds promptly upon trigger verification without post-event damage assessment. Recipients must submit annual reports on how they promote National Flood Insurance Program enrollment, educate about parametric insurance limits, encourage mitigation, support households and small businesses, and improve flood risk awareness. This permission sunsets after five years unless Congress reauthorizes it. FEMA must also conduct outreach about these policies and allow other FEMA grant funds to be used for parametric insurance premiums for five years. Any such policy must include a written disclosure explaining trigger conditions, basis risk (when a trigger occurs but individuals may not get relief), and how it differs from National Flood Insurance Program coverage. FEMA must report to Congress at one, three, and five years after enactment analyzing changes in NFIP policy numbers, product types and household coverage, timeliness of payouts, outreach efforts, and any legislative recommendations.