What is the issue?
NFIP's authority to provide flood insurance is currently set to expire at midnight on January 30, 2026. NAR is making every effort to secure a long-term reauthorization of the program. Here are answers to frequently asked questions about what this means for upcoming closings and several proactive steps your clients can take in the meantime.
What is the latest?
Congress will have until the January deadline to pass additional appropriations to fund the federal government for the 2026 fiscal year. An NFIP extension is expected to be attached. NAR is urging the longest extension possible while Congress continues working on a long-term reauthorization measure.
What is NAR doing?
• Maintaining regular communication with Congressional leaders and the White House.
• Coordinating with industry partners to support long-term reauthorization.
• Making flood insurance a key talking point in meetings with members of Congress.
• Contacting hundreds of members of Congress about NFIP’s importance.
• Raising the issue’s profile through targeted calls for action, talking points, and media advisories.
What happens during a lapse?
• NFIP cannot issue new or renewal flood insurance policies until the program is reauthorized.
• Existing NFIP policies remain in effect until their expiration date, including a 30-day grace period. Claims will continue to be paid as long as FEMA has funds.
• Insurers may assign the seller’s NFIP policy to the buyer simply by substituting names, so coverage on the property is maintained and a new policy does not need to be issued.
• Private flood insurance (not backed by NFIP) is not affected. For options, visit your state insurance department’s website and remind clients to review policy details carefully.
• Most federal lending regulators suspend the flood insurance purchase requirement during a lapse, leaving it up to lenders to decide whether to make loans in special flood hazard areas while NFIP insurance is unavailable.
