The National Flood Insurance Program is not Insurance but is a Government Entity
Post 5235
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A Suit Against the NFPA Must be Filed in Federal Court
In Brian Bevel v. Federal Emergency Management Agency (FEMA) , United States District Court, Middle District of Florida, 8:25-cv-02159-JLB-CPT (November 21, 2025)Judge: John L. Badalamenti resolved the dispute over insurance coverage..
Key Facts
Parties and Claim:
Plaintiff Brian Bevel sued FEMA for breach of an insurance contract under the National Flood Insurance Program (NFIP). The policy insured Bevel’s property in Longboat Key, Florida, against flood damage.
Incident: The property sustained damage on September 26, 2024. Bevel notified FEMA, which investigated but allegedly failed to adjust the loss per policy terms, constituting a material breach.
Procedural History:
Bevel filed the breach-of-contract suit in Florida state circuit court on May 6, 2025, seeking damages exceeding $50,000. FEMA removed the case to federal court on grounds of federal officer removal under 28 U.S.C. § 1442(a)(1).
FEMA moved to dismiss under Fed. R. Civ. P. 12(b)(1) for lack of subject-matter jurisdiction, citing derivative jurisdiction and sovereign immunity. Bevel failed to timely respond; the court ordered a response (Doc. 20), which was filed late (Doc. 21) but accepted in the court’s discretion.
Bevel’s Response Arguments (Rejected):
FEMA, as the removing party, should not seek dismissal. Independent jurisdiction exists under 42 U.S.C. §§ 4071–4072 (NFIP claims) or 28 U.S.C. § 1332 (diversity). Dismissal would waste resources, as Bevel could refile in federal court.
Relevant Law and Analysis
The court’s decision hinges on federal courts’ limited jurisdiction and the requirement to resolve jurisdictional issues first. The motion was treated as a factual attack under Rule 12(b)(1), allowing consideration of matters outside the pleadings. Burden to establish jurisdiction rests with the plaintiff. Dismissals for lack of jurisdiction are without prejudice.
Core Doctrines Applied
Federal jurisdiction over a removed case derives from the state court’s initial jurisdiction. If the state court lacked subject-matter jurisdiction, the federal court acquires none upon removal, even if it would have had original jurisdiction.
Florida state court lacked jurisdiction over Bevel’s NFIP breach claim, as 42 U.S.C. § 4072 vests “original exclusive jurisdiction” in the federal district court where the property is located. Bevel’s policy was issued under § 4071 (NFIP claims).
Statutory Framework
42 U.S.C. § 4071:
Authorizes issuance of Standard Flood Insurance Policies (SFIPs) by FEMA (or Write Your Own program insurers).
42 U.S.C. § 4072:
Grants federal district courts “original exclusive jurisdiction” over suits by policyholders against FEMA for disallowed claims or breach. Venue is proper in the district where the insured property is located.
28 U.S.C. § 1442(a)(1):
Allows removal by federal officers/agents acting under federal law (FEMA qualified). However, derivative jurisdiction still applies.
28 U.S.C. § 1332:
Diversity jurisdiction argued by Bevel but irrelevant due to derivative doctrine; NFIP claims are statutorily exclusive to federal question jurisdiction.
Plaintiff’s Arguments and Rebuttals
FEMA’s Removal as Estoppel:
Rejected; FEMA can seek dismissal in federal court even after removal, as it could have in state court based on § 4072.
Efficiency/Waste:
Dismissal without prejudice allows refiling in proper federal court; plaintiff “filed in the wrong court” and must comply with § 4072.
Implications
This order underscores the strict enforcement of exclusive federal jurisdiction for NFIP claims, preventing “forum shopping” via state filings followed by removal.
Plaintiffs must file directly in federal court to avoid derivative jurisdiction pitfalls. Sovereign immunity further insulates FEMA from state-court suits.
Bevel retains the right to refile in the U.S. District Court for the Middle District of Florida.
Outcome
FEMA’s Motion to Dismiss was granted; Plaintiff’s Complaint was dismissed without prejudice for lack of subject-matter jurisdiction and Plaintiff may refile in the proper federal court.
ZALMA OPINION
FEMA is not an insurance company. It is a federal government agency that provides to people in flood zones indemnity to those who pay for the protection. It is not insurance. By its creation as a federal agency suits against FEMA can only be brought in federal courts. The Plaintiff attempted to avoid federal court by filing in state court only to have FEMA remove the case to a federal court where it was dismissed for lack of jurisdiction.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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From Me and The Zalma Family to You
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My family and I have much to be thankful for this year. Our three adult children are healthy and successful, our grandson is a college graduate and working in IT for a major corporation and our granddaughter is 8 years old and a truly beautiful and loving child.
I am personally in good health, walking four to five miles a day, and in retirement working only six to eight hours a day doing what I love the most, writing about insurance, insurance claims, insurance law and acting as an insurance claims consultant and expert witness.
I am thankful for you, my friends, clients and readers of “Zalma’s Insurance Fraud Letter,” my blog “Zalma on Insurance,” and my books and other writing.
As a first generation American I am honored to join with all Americans the ability to celebrate Thanksgiving that started when the United States was a dream and just a colony of Great Britain to give thanks for the good things in life...
Roofers, Insurance, Hurricanes and Fraud
Post 5234
See the video at https://rumble.com/v7281fq-a-blue-tarp-is-not-a-roof-repair.html and at https://youtu.be/tgdzky79tG0, and at https://zalma.com/blog plus more than 5200 posts.
Homeowners Defrauded by Roofer Litigates for Years to Get Their Money Back
In Gary v. Hollier’s Specialty Roofing, Inc., 23-260 (La. App. 3 Cir. 12/27/23), 389 So. 3d 109 Ryan Gary and Rebecca Gary (the Garys), homeowners who suffered roof damage from Hurricane Delta sued Hollier’s Specialty Roofing, Inc. (Hollier Roofing), a roofing contractor who took the money and refused to complete the repair of the roof.
KEY FACTS
The Garys’ roof was damaged by Hurricane Delta on October 9, 2020. The next day, they signed a written agreement with Hollier Roofing for repairs, including an addendum authorizing direct insurance payments from their insurer, Federal National Insurance Company.
Hollier Roofing installed a temporary tarp and received payments totaling $18,278.21 ($2,190 from the Garys for the ...
One Year Private Limitation of Action Provision Enforceable
Post 5233
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Barn Roof Collapse Suit Attempts to Avoid Federal Court Fails Because of Fraudulent Joinder
In Funaro v. State Farm Fire & Casualty Co., United States District Court for the Western District of Pennsylvania, Civil Action No. 25-04, Judge: W. Scott Hardy (W.D. Pa. Nov. 19, 2025) the District Court was faced with motions by Plaintiff Funaro including the following:
1 Motion to Remand.
2 State Farm’s Partial Motion to Dismiss.
3 Statutory bad faith (42 Pa. C.S. § 8371) against State Farm alone
KEY FACTS
On January 10, 2021 a large barn roof in Honesdale, PA collapsed under weight of snow. The barn incurred structural damage, contents damage (including $90,000 to 100,000 in a custom French stove).
Plaintiffs were insured under a State Farm policy (using a standard ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
