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Association of State Flood Plain Managers

Association of State Flood Plain Managers Association of State Flood Plain Managers
Association of State Flood Plain Managers

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NFIP Authorization Lapses Again
Monday, March 29, 2010

This means that until Congress approves reauthorization of the NFIP:

  • no new NFIP policies will be issued,
  • existing NFIP polices due for renewal during this time will not be renewed, and
  • increased coverage requests will not be processed.

Congress is not expected to revisit consideration for NFIP reauthorization until it returns to session April 12, 2010.

Existing Policies

Existing NFIP flood insurance policies in effect prior to the program lapse (with coverage period effective during the lapse) will be eligible for claim payments for covered damages incurred during the effective dates of the policy.

Impacts on the Lending, Home Mortgage & Building Industries

This program lapse has huge implications on the lending industry and home mortgage/building industry. New NFIP flood insurance policies cannot be issued without Congress' reauthorization of the NFIP. Real estate transactions for properties in the Special Flood Hazard Area (SFHA) or other areas where the lender requires flood insurance to close the loan will not go through unless similar coverage to the NFIP's flood insurance policy can be found in the private insurance marketplace that is acceptable to the lender.

Information about the program lapse and FEMA Memos can be found here on the ASFPM website under "Working with Congress". Status updates will be posted on this page as they occur.

Adobe PDFFEMA NFIP Lapse FAQ
Adobe PDFFEMA Memo on NFIP Authorization





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