A bill to amend the Housing and Urban Development Act of 1968 with respect to flood insurance by establishing the National Disaster Insurance Fund, and for other purposes.

Extends indefinitely the flood insurance program authorized under the Housing and Urban Development Act of 1968.

Provides that in carrying out this flood insurance program the Secretary of Housing and Urban Development: (1) shall take such steps as are necessary to assure the automatic inclusion in each fire and property insurance policy sold in the United States of flood insurance coverage; (2) shall establish a surcharge of 3 percent of premium to be collected by every insurer with respect to each fire and property insurance policy sold in the United States, whether or not such insurance policy includes flood insurance coverage; and (3) shall establish in the Treasury a National Disaster Insurance Fund which shall consist of: (a) the collected surcharges on premium; (b) 1 percent of all sums repaid with respect to Small Business Administration and Federal Housing Administration disaster loans; and (c) such sums as the Congress shall appropriate.

Requires the Secretary to make payments from the fund to each claimant under the flood insurance program for the full amount of loss suffered by such claimant in a flood during a presidentially declared national disaster. (Amend 42 U.S.C. 4056)