Following a lapse in federal funding, the Federal Emergency Management Agency (FEMA) has issued guidance outlining procedures for the National Flood Insurance Program (NFIP). During this lapse in authority, insurers are prohibited from issuing new NFIP policies, renewing existing ones, or increasing coverage limits. Existing policies will remain in force and claims under those policies will continue to be processed and paid as usual. FEMA’s bulletin provides detailed instructions for handling new applications, renewals, endorsements, cancellations, and claims to ensure consistency until Congress reauthorizes the program.
What this means for you.
New coverage is on hold. If you were planning to add coverage or purchase a new NFIP policy (for example, as part of a property acquisition or refinance), you’ll need to wait until Congress reauthorizes the program.
Your current coverage still stands. Existing NFIP policies remain in effect through their expiration date, and any covered claims will continue to be processed and paid.
Renewals may be delayed. Even if your renewal date falls during the lapse period, FEMA’s guidance allows for reinstatement once authority is restored. M3 can help you sort out timing and make sure your coverage resumes smoothly.
Real estate closings may be affected. If your lender requires flood insurance, certain real estate transactions might be delayed until new NFIP policies can be written. It’s a good idea to coordinate early with your lender and your M3 client executive if you have a closing coming up.
Private flood options may be an alternative. In some cases, private insurers can offer temporary or alternative coverage. M3 can help you review options and confirm whether they meet your lender’s or compliance requirements.
At M3, we’re closely monitoring the situation and maintaining communication with our carrier partners.
Our team will update clients immediately once FEMA issues new guidance or Congress takes action to reauthorize the NFIP. In the meantime, we recommend reviewing your property schedules, renewal dates, and any pending transactions that may require flood insurance.
Still have questions about your coverage? Connect with your M3 Client Executive to help you take the next steps.
