NFIP Lapse 2025: What It Means for Flood Insurance Policyholders

NFIP Authorization Has Expired

As of midnight on September 30, 2025, the National Flood Insurance Program (NFIP) officially entered a lapse in authorization. The Senate did not approve the short-term Continuing Resolution (CR) passed by the House before recessing, leaving policyholders, agents, and homebuyers in limbo.

If you rely on NFIP coverage or need flood insurance for a mortgage closing, here’s what this temporary lapse means for you.

What Happens During the NFIP Hiatus?

FEMA has issued guidance on how insurers and agents should handle this pause. During the lapse:

• New NFIP policies and renewals are paused – Any pending applications will be placed in Pending Underwriting status.

• Effective dates are preserved – If you already submitted an application, your policy date remains locked in.

• Coverage increases aren’t allowed – You cannot raise coverage limits on existing NFIP policies.

• Renewal and expiration notices won’t go out – Communication from NFIP will be suspended.

• Existing policies remain in force – Current NFIP flood insurance policies are still active, and claims will continue to be processed and paid.

The Impact on Homebuyers and Agents

The lapse creates unique challenges for both homeowners and real estate professionals:

• No new NFIP policies can be issued – This includes policies required for federally backed mortgages, which may delay closings.

• NFIP quotes are paused – Applications remain “pending,” but private flood insurance remains available.

• Agents need alternatives – Insurance brokers and agents must lean on private flood insurers to help clients close on time and maintain protection.

Private Flood Insurance: A Reliable Alternative

The good news? The NFIP hiatus does not affect the private flood insurance market.

Private insurers continue to:

• Issue new policies without interruption

• Provide flood insurance quotes immediately

• Offer flexible coverage options that sometimes exceed NFIP limits

For homeowners in Connecticut and other licensed states, private flood insurance may be the best solution until NFIP reauthorization occurs.

What Homeowners Should Do Now

If you have an existing NFIP policy, don’t panic — your coverage remains active, and any claims will still be handled.

If you’re purchasing a home or need new flood protection:

✅ Ask your insurance broker about private flood insurance options.

✅ Make sure you have coverage in place for mortgage closings.

✅ Stay informed, as NFIP reauthorization could resume soon.

While the NFIP lapse of 2025 creates uncertainty, Connecticut homeowners and business owners still have options. Private flood insurance remains open and available, providing a crucial safeguard against flood risk.

At Insure Connecticut LLC, we’re here to help you navigate the changing flood insurance landscape and secure the right coverage for your property.

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Frequently Asked Questions: NFIP Lapse 2025

1. Is my current NFIP policy still valid?

Yes. Existing NFIP policies remain active, and claims will continue to be processed.

2. Can I buy a new NFIP policy during the lapse?

No. New policies and renewals are paused until NFIP is reauthorized.

3. Will mortgage closings be affected?

Yes. Federally backed mortgages requiring flood coverage may face delays unless you opt for private flood insurance.

4. Is private flood insurance a good alternative?

Absolutely. It’s available during the lapse, often offers broader coverage, and can help meet lender requirements.

Protect Your Property Today

Don’t let the NFIP lapse leave you exposed. Contact Insure Connecticut LLC to explore private flood insurance solutions and keep your home, business, or investment property protected.

📞 Call us at (860) 945-4383 or request a free flood insurance quote online today.

Stay ahead of the changes — download the NFIP Lapse Guidance PDF to understand exactly how the pause impacts policies, renewals, and closings.

NFIP lapse guidance..pdf

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