What is the issue?
NFIP’s authority to issue flood insurance expired at midnight on September 30, 2025. NAR is working to secure a long-term reauthorization. Below are answers to common questions about what this means for closings and steps your clients can take.
What is the latest?
Congress is considering legislation to fund the government through November, with an NFIP extension attached. NAR is urging Congress to pass the longest extension possible while working toward a long-term solution.
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.
