The National Flood Insurance Program (NFIP) provides $1.3 trillion in flood insurance to 4.7 million policyholders in 23,000 communities across the United States. A lapse in NFIP authority puts an estimated 1,400 transactions a day at risk of moving forward without vital flood coverage. Because Congress failed to meet the Sept. 30 deadline to pass a spending measure that included extension of NFIP authority, homeowners in high-flood-risk areas and those looking to purchase homes may be forced to proceed to closing without flood insurance. This creates significant uncertainty over whether coverage will be available and if sufficient FEMA funds will be accessible to pay claims after a flood. While NFIP cannot issue new and renewal policies, existing policies remain active, include a 30-day grace period, and can be transferred to new owners. Research from the National Association of Realtors found that during a recent extended lapse, as many as 40,000 transactions per month were stalled or canceled. Read more at Realtor Magazine.
Source: Realtor Magazine; 10/7/2025