NFIP Due To Lapse September 30th

September 29, 2025

UPDATE: Yup, it lapsed. When Congress reopens the government, NFIP will reopen. We’ll post any news, positive or negative, here.

It’s late September, bringing with it familiar signs of autumn …

School busses on the road again …
Crisp, cool mornings …
Buffalo Bills fans swinging between joyful celebration and abject despair …
Holiday decorations on sale at Home Depot, … and
The National Flood Insurance Program is about to lapse. Starting Wednesday, you probably will be unable to write, renew or endorse flood insurance policies through the NFIP or any private insurers who issue NFIP policies.

You may be one of those people who believe in October baseball, the ritual of Linus awaiting the arrival of the Great Pumpkin, the sparkling foliage in the Adirondacks and Catskills, and stable insurance markets. You have a sound basis for the first three beliefs, but Congress annually dispels your illusions about the fourth. Once again, the NFIP’s authority to issue and renew flood insurance policies will expire at midnight on September 30^th unless Congress passes a bill and the president signs it before then.

Unfortunately, for many years, the program’s authorization has been tied to the end of the federal government’s fiscal year (September 30^th). On September 19^th, the U.S. House of Representatives approved by a narrow margin a bill that would fund the government’s operations through November 21^st. The U.S. Constitution requires the Senate to approve an identical bill before it can be sent to the president for his approval. However, Senate rules require 60 votes to close debate and proceed to a vote, and senators have indicated that it will not receive 60 votes unless it is amended to restore funding cuts made to health programs earlier this year.

Many government operations, including the NFIP, will shut down Wednesday morning if both chambers do not pass a bill for the president to sign.

The NFIP has long been a minor (for some people) casualty in the fights over federal spending that seem to break out in Washington every few months. If history repeats itself, Congress will pass a temporary budget extension, then another one a few months from now, and maybe another one a few months after that before a spending plan for next year is finally signed into law. This has been the story for the last many years.

Big I members who attend the national Big “I”‘s National Legislative Conference in Washington, D.C. each spring have, for years, asked Congress for a long-term NFIP reauthorization to avoid these disruptions. We anticipate that this will be on the agenda again at the next conference, scheduled for April 22–24, 2026. Members interested in attending this important conference should contact Travis Wattie, AVP of Government Relations.

For you, the program’s lapse means:

Any clients who need flood insurance for a real estate closing next week will be unable to obtain it from the NFIP.
Any clients who need to increase their insurance limits under an existing NFIP policy will be unable to do so.

If you have access to a provider of private flood insurance, you may need to look to them as an alternative, at least in the short term. These policies are typically written on an excess and surplus lines basis, meaning that their forms and premiums are not subject to regulation by the New York State Department of Financial Services. Policyholders also do not receive protection from the New York Property Casualty Security Fund. However, many excess and surplus lines insurance carriers are in very solid financial condition; their products may provide better coverage than does an NFIP policy, and the premiums may be affordable for your clients.

If you do not have access to a private flood program, it will be impossible for you to write, renew, or service flood insurance for your clients until Congress passes an extension and sends it to the president.

We recommend that you communicate this news to any of your clients who rely on you for flood insurance.

Hopefully, this stalemate will not last long. At the very least, it can be hoped that Congress will pass a temporary spending bill that will run until later in the fall as they have in years past. If they do, I anticipate writing this blog post again when that bill is due to expire. Stand by for autumn reruns.