As of October 1, 2025, the federal government is operating under a partial shutdown due to Congress not yet finalizing funding for the new fiscal year. That has direct implications for the National Flood Insurance Program (NFIP), and many of you may have questions or concerns. Below is what we know right now, and most importantly, how we’re here to support you every step of the way.
What changes / what is suspended
The NFIP’s statutory authority has lapsed, which means it cannot issue new flood insurance policies or renew existing ones, nor can it approve increased coverage requests.
Any renewals or new policies must wait until Congress reauthorizes the NFIP.
Importantly, existing policies that were in force before the shutdown remain valid until their normal expiration dates. Claims submitted under those policies can still be paid, as long as FEMA has sufficient funds.
The federal requirement for flood insurance in designated flood zones is temporarily suspended. That means lenders may have more discretion in deciding whether to enforce flood insurance in those zones.
What’s affected and what is not
Real estate closings requiring flood insurance could be delayed or even canceled. During past NFIP lapses, thousands of property transactions were impacted daily.
If your mortgage is federally backed or your property is in a high-risk flood zone, the inability to secure NFIP coverage could complicate loan approvals.
That said, private flood insurance may be an option in some areas, depending on what insurers and lenders are willing to offer.
The NFIP cannot process renewals or issue contracts until reauthorization.
Your existing flood policy is still “on the books” until its expiration date. If a covered event occurs, valid claims are still payable.
The program’s lapse is a legal (statutory) technicality tied to Congress funding the government, not because your coverage is invalid.
In past shutdowns, once Congress has acted, the NFIP was reinstated, and delayed renewals and new policies resumed.
We (Wells Insurance) remain active and ready to support you, we can monitor developments, advise on alternatives, and help guide you through this period of uncertainty.
Here are practical steps we recommend:
| Action | Why It Helps | What We Can Do |
|---|---|---|
| Check your policy expiration date | Know when your coverage runs out so you can plan ahead | We’ll review your policy details with you |
| Gather your documentation / claims history | Be ready to file claims or renew once the program is back online | We’ll help you assemble the needed paperwork |
| Ask about private flood insurance options | In some areas, private insurers may still be writing new or renewal policies | We’ll help you explore private market alternatives if available |
| Keep an eye on congressional updates | The sooner NFIP is reauthorized, the quicker things return to normal | We'll inform you of changes as soon as they occur |
| Maintain open communication with lenders | If you're buying/selling, staying proactive with your lender can reduce delays | We can help you coordinate with your lender on flood-insurance contingencies |
We understand this situation is stressful, especially for those of you in high-risk flood zones or in the middle of buying or selling property. But you are not alone in this.
We will be watching congressional developments closely and communicating updates to you.
We will work with you to assess options, whether that’s waiting for NFIP reauthorization or seeking private-market alternatives.
We’ll help you plan ahead so you’re ready the moment the program is restored.
In short: this is a temporary disruption, not the end of your coverage. We remain committed to helping you protect your property, your finances, and your peace of mind.
Contact us now if you have questions or concerns!