As of the writing of this blog post, Congress has not yet extended the National Flood Insurance Program, which expires at midnight on Friday, November 30th.

There is currently no clear path forward, but experts are “cautiously optimistic” that a deal will be struck in Congress to avoid an NFIP lapse. This will continue to be an issue as Congress intends to only pass short term extensions for the foreseeable future.

There are three possible paths forward as of writing this update:

  1. A lapse of the NFIP
  2. A 7 day extension to align the NFIP with Federal appropriations
  3. A 6 Month extension to allow for appropriate reforms

FEMA has issued guidance for insurance companies on how to handle writing new flood policies, policy renewals, and claims during a flood program expiration. RogersGray has created consumer guidance for you as an insured to know what to do before, during and after a flood program expiration. Overall, our guidance outlines that:

  • If you have a flood policy renewing after November 30th, and within the next few weeks, either pay it now or ask for the renewal statement (billed renewals can be paid during a NFIP lapse)
  • If you are planning to close on a home after November 30th, PAY FOR THE POLICY NOW. If paid before the program expires, the policy will still go effective on the closing during a program expiration.
  • If your policy is in force before the program expires, and you experience a claim, your claim will be handled as usual.

For more detailed guidance on what to do if the NFIP expires, visit our post from earlier in the year – What Happens if the NFIP Expires?

Ryan O'Connell

Senior Vice President | Partner

Ryan O’Connell is a Partner and Senior Vice President at RogersGray with a focus on personal insurance, specializing in coastal property risks and complex personal insurance needs for investors and second homeowners.

Named as an Affiliate Member of the year by Cape Cod and Island Realtors Association in 2018, Ryan also volunteers with Housing Assistance Corporation and the Community Development Partnership, where he teaches first time home buyers on how to understand insurance and how to find the right insurance policy for their needs. You can connect with Ryan via LinkedIn or by email.