As of midnight on September 30, 2025, the National Flood Insurance Program (NFIP) has NOT been reauthorized by Congress, resulting in an official program lapse due to the ongoing government shutdown.

This lapse has immediate and critical consequences for those in the process of binding new flood insurance policies, particularly those involved in real estate transactions.

Key Impacts During the NFIP Lapse:

During this lapse period, the following policies and restrictions are in effect:

• Existing Claims Will Be Processed: The NFIP will continue to process and pay claims under policies that were in force before midnight on September 30, 2025. If you currently have a bound policy from the NFIP and need to submit a claim, that should not be affected if you have an assigned policy number. However, please be aware that the processing of claims and other administrative tasks may be slower due to staff furloughs.
• New Business Policies Cannot Be Issued: New NFIP Policies cannot be issued. This includes policies associated with a loan closing unless the application was submitted before the shutdown period and the company writing the policy receives the full amount due within 10 days (or 30 days of the closing date, depending on whether payment is from an escrow account).
• Coverage Changes Are Frozen: Requests to increase or add coverage to an existing policy cannot be processed during the shutdown.
• No Renewal Notices: Companies that issue NFIP policies are not allowed to issue any renewal notices during a shutdown period.

Immediate Action for Home Buyers and Realtors:

If you are currently in the process of buying a home, now is an important time to be extra mindful of whether the property is located within a designated flood zone.

• Mandatory Flood Insurance: Buyers who purchase a property with a government-backed mortgage in a high-risk flood zone are required to have flood insurance.
• Seek Private Options: Since new NFIP policies cannot be issued, purchasers who require mandatory flood insurance for their loan must immediately look to private flood insurance options to satisfy their lender's requirements and avoid closing delays. As an independent insurance agency, we can help you find private flood insurance carriers.

If you are looking to buy a home in a flood zone, or are otherwise affected by the NFIP Lapse, please contact us today. As your trusted, independent insurance advisor, we can shop between carriers to help you find coverage, even in sticky situations. Call or text us today at 360-514-9550 and we can help protect what matters most to you.