FAQ: National Flood Insurance Program Expires September 30, 2024

What is the issue?

NFIP's authority to provide flood insurance is currently set to expire at midnight on September 30, 2024. 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 is discussing a Continuing Resolution (CR) to extend funding for most of the federal government after September 30, 2024. An NFIP extension would be attached to the CR. In the meantime, NAR is urging the longest extension possible while Congress continues working toward a long-term reauthorization and reform measure.

What is NAR doing?

  • NAR is in regular communication with Congressional leaders and the White House about the NFIP.
  • NAR is coordinating with a broad coalition of industry groups to support a long-term reauthorization.
  • Flood insurance has been a talking point for meetings with members of Congress over the past year.
  • Hundreds of members of Congress were contacted about NFIP's importance to every state in the U.S.
  • NAR has raised the issue's profile with multiple calls for action, talking points, op-eds and state letters.

What happens if there is a lapse?

  • NFIP cannot sell new or renew flood insurance policies after 11:59 pm Eastern time on September 30, 2024.
  • Existing NFIP policies will remain in effect until their expiration date, and claims will continue to be paid as long as FEMA has the funds on hand.
  • Renewal policies are generally issued if the application and premium are received prior to a lapse. Other renewals and policies expiring after a lapse must wait for reauthorization.
  • During a lapse, property buyers can assume existing/renewal policies. "Assignment of policies" (page 3) allows insurers to substitute the buyer's name for the seller's without having to reissue the policy.
  • Private flood insurance backed by a source other than NFIP (e.g., Lloyd's of London) are not affected. Visit the Pennsylvania Insurance Department page and the Florida Office of Insurance Regulation page for options. Please remind your clients to read the fine print of any insurance policy.
  • The federal requirement to purchase flood insurance is suspended, which means it is up to lenders to decide whether to make loans in special flood hazard areas while NFIP insurance is not available.

Federal Agency Guidelines (suspending flood insurance requirements during an NFIP lapse)


Flood Insurance

The National Flood Insurance Program provides hundreds of thousands of dollars of flood coverage where required for a federally backed mortgage.