The National Flood Insurance Program’s (NFIP) authority to provide flood insurance is scheduled to expire at midnight on September 30, 2026. Congress must act before that date to extend or reauthorize the program. In the meantime, industry stakeholders continue to monitor legislative activity and prepare for the potential impacts of a lapse.
Current Status of Congressional Action
Congress has until September 30 to pass appropriations funding the federal government for fiscal year 2027. An extension of the National Flood Insurance Program is expected to be attached to that legislation. While lawmakers work toward a long-term reauthorization, the National Association of Realtors is urging Congress to adopt the longest extension possible.
NAR’s Role in Reauthorization Efforts
The National Association of Realtors is actively engaged in advocacy efforts related to the program’s future. These efforts include regular communication with Congressional leaders and the White House, as well as coordination with industry partners in support of long-term reauthorization. Additionally, flood insurance remains a central topic in meetings with members of Congress.
NAR has also contacted hundreds of lawmakers to emphasize the program’s importance. To raise awareness further, the organization continues outreach through targeted calls for action, talking points, and media advisories.
Operational Impacts During an NFIP Lapse
If the program’s authority lapses, the National Flood Insurance Program cannot issue new flood insurance policies or renew existing ones until Congress reauthorizes the program. However, policies already in force remain active until their expiration dates. This includes the standard 30-day grace period. During this time, FEMA will continue paying claims as long as sufficient funds remain available.
In property transactions, insurers may assign an existing NFIP policy from a seller to a buyer by substituting the policyholder’s name. This process allows flood coverage to remain in place without issuing a new policy.
Private flood insurance policies that are not backed by the NFIP are not affected by a lapse. Insurance professionals may direct clients to their state insurance department for available options and should advise careful review of policy terms.
Lending Requirements During a Lapse
During a lapse in NFIP authority, most federal lending regulators suspend the mandatory flood insurance purchase requirement. As a result, lenders determine whether to proceed with loans in special flood hazard areas when NFIP coverage is unavailable.
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