A flood insurance bill that could provide consumers with more coverage choices is closer to becoming law after the US House of Representatives voted unanimously in favour.

The Flood Insurance Market Parity and Modernisation Bill now awaits passage in the US Senate.

“As under current law, the amount of mandatory flood insurance shall be, for either federal or private flood insurance, equal to the development or project cost of the building… the outstanding principal balance of the loan or the maximum limit of federal flood insurance coverage available for the particular type of property, whichever is less,” the bill says.

It revises without substantive change the flood insurance requirements that apply to home loans or loan guarantees.

Industry bodies say it means more options for US consumers.

“This critical legislation provides clarity to lenders that they may accept private flood insurance solutions from private insurers and eligible surplus lines insurers to fulfil mandatory purchase requirements for mortgages,” the National Association of Professional Surplus Lines Offices says.

“Passage of this legislation in the Senate is now [our] priority and will be our key focus.”