From time to time, Congress allows the National Flood Insurance Program (NFIP) to lapse temporarily. When that happens, it creates uncertainty for homeowners, buyers, and real estate transactions—especially in flood zones. The good news: coverage options still exist, and Risman Insurance Agencies is here to help clients navigate them.
This post explains what an NFIP lapse means, who may be affected, and why private flood insurance can be a practical solution.
What Is an NFIP Lapse?
An NFIP lapse occurs when Congress does not pass an extension or reauthorization before the program’s expiration date. During a lapse:
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New NFIP policies typically cannot be issued
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Policy increases and some changes may be paused
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Real estate closings that require NFIP coverage may be delayed
Importantly, existing NFIP policies usually remain in force during a lapse, but options for new buyers and certain transactions can become limited.
As we’ve seen in previous government shutdowns, these lapses are often temporary—but the timing can still cause stress if you’re mid-transaction or shopping for coverage.
Who Is Most Affected by an NFIP Lapse?
An NFIP lapse most commonly impacts:
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Homebuyers who need flood insurance to close
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Property owners purchasing homes in Special Flood Hazard Areas (SFHAs)
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Homeowners looking to increase limits or make policy changes
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Refinances that require proof of flood insurance
If your lender requires flood insurance, waiting out a lapse may not be an option.
Private Flood Insurance: An Important Alternative
At Risman Insurance Agencies, we work with carriers that offer private flood insurance—which can often be written even when the NFIP is paused.
Depending on the property and carrier, private flood insurance may offer:
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Higher available coverage limits
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Replacement cost options for contents
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Shorter waiting periods in some cases
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Flexibility for homes in or out of flood zones
Most importantly, many private flood policies are accepted by lenders, allowing transactions to move forward during an NFIP lapse.
👉 Learn more here: NFIP vs. Private Flood Insurance: What Homeowners Need to Know
Should You Switch or Buy Private Flood Insurance Now?
Every situation is different. Private flood insurance may be a fit, but it depends on factors like:
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Property location and flood zone
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Building type and elevation
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Lender requirements
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Coverage needs and budget
Our team can help you compare NFIP and private options so you can make an informed decision—during a lapse or at any time.
We’ve Helped Clients Through This Before
This isn’t the first time the NFIP has lapsed, and it likely won’t be the last. During previous shutdowns, Risman helped homeowners and buyers avoid delays and secure compliant coverage by exploring private flood solutions when appropriate.
If you’re unsure how a lapse affects you, don’t guess—talk with us first.
Talk With a Flood Insurance Expert
If you’re:
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Buying or selling a home
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Refinancing
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Unsure whether your flood coverage is impacted
We’re here to help explore your options.
📞 Call us or 📩 Request a flood insurance quote
Important Reminder
Insurance coverage cannot be added, deleted, or changed until confirmed in writing from our office. Coverage availability and terms vary by policy and carrier.
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