This morning the country woke up to a government shut down which means that Congress did not reauthorize the NFIP by the September 30th deadline. This isn’t the first time this has happened, and we are confident the program will be reauthorized at some point. That said, when this happens it can be quite confusing, and we want to guide you through the chaos.
With the NFIP being expired, they have no authority to:
- Issue new policies for which application and premium payment dates are on or after October 1, 2025; or,
- Issue increased coverage on existing policies for which endorsement and premium payment dates are on or after October 1, 2025; or,
- Issue renewal policies for which the renewal premium is received by the company on or after October 1, 2025, and after the end of the 30-day renewal grace period, until Congress reauthorizes the Program.
If NFIP insurance isn’t available, what does this mean for you?
- You can close a loan without NFIP flood insurance.
In the interim, there is no regulatory requirement to obtain a private flood insurance policy or delay closing. This is a risk decision. You should also check with your investors as they may have different requirements. - You still need to pull a Standard Flood Hazard Determination Form and give the Notice of Special Flood Hazard Area, if applicable.
- When the NFIP is reauthorized, you will need to notify affected borrowers and begin force placement procedures.
Published
2025/10/01
