The National Flood Insurance Program (NFIP) has been reauthorized until the end of January 2026.
With the passage of HR 5371, which ended the 43-day shutdown of the federal government, NFIP was temporarily extended until Jan. 30, 2026.
The program lapsed without a reauthorization at the start of Oct. 1. No new federal flood insurance policies were sol
d or renewed during the timeframe. The Federal Emergency Manageme
nt Agency (FEMA), administrator of NFIP, could have made paym
ents for claims with available funds.
The spending bill reauthorizes NFIP retroactively, backdated to O
ct. 1, according to Louisiana Commissioner of Insurance Timothy Temple. Citing a FEMA bulletin, Temple said
NFIP insurers can issue policies effective as of the date they receiv
ed the application, and any claims made during the lapse can be processed and paid.
“The end of the federal government shutdown means the National Flood Insurance Program lapse has als
o ended, and likely a rush of activity as would-be homeowners who w
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ere looking to close a mortgage for the last 40 days seek to gain new coverage and existing policyholders obtain
their renewals,” said Jimi Grande, senior vice president of federal and political affairs for the National Associati
on of Mutual Insurance Companies (NAMIC). He said the trade a
ssociation continues to urge Congress to pass a long-terms extension and reforms.
About 1,300 property sales per day and about 40,000 closings per month are impacted by a lapse in the floo
d insurance program, according to the National Association of Re
altors (NAR). In a letter to lawmakers in September, NAR also recommended a lo
ng-term reauthorization of NFIP with reforms to include improved floo
d maps, mitigation ef
forts, and policy pricing. According to its research, NAR said NFIP supports about 500,000 home sales annually.
NAMIC, the American Property Casualty Insurance A
ssociation (APCIA), National Conference of Insurance Legis
lators (NCOIL),The Council of Insurance Agents and Brokers, Independent Insurance Agents & Brokers of Americ
a, Reinsurance Association of America, and Wholesale & Spe
cialty Insurance Association urged congressiona
l leaders to reauthorize NFIP shortly before its expiration. Many ha
ve also called for a long-term reauthorization to avoid lapses.
NFIP has been reauthorized more than 30 times since 2017.
APCIA provided feedback to a FEMA Review Council last month. Among its recommendations were at least
a 7-year reauthorization, regular reviews of flood maps, and incentives for homeowners to mitigate losses.