The National Flood Insurance Program (NFIP), which is operated by the Federal Emergency Management Agency (FEMA), has temporarily stopped issuing any new flood insurance policies and renewing existing ones due to the federal government shutdown that began at 11:59 p.m. on September 30, 2025.
Homebuyers, Policyholders, and Mortgage Holders Affected by the NFIP Suspension
This suspension impacts prospective property owners and certain property owners with current flood policies that have or are about to expire in FEMA-designated Special Flood Hazard Areas (SFHAs):
Homebuyers Facing Closing Delays Without Flood Coverage
Homebuyers purchasing properties that require flood coverage to close on their future homes are one group affected by the current government shutdown. The most common scenario involves financed transactions, as virtually all lenders require flood insurance if the property is located in a FEMA-designated flood zone. No flood insurance means no funding, which means no closing.
Homeowners and Borrowers Obligated to Maintain Flood Coverage
Current NFIP policyholders who are required to maintain flood coverage for various reasons and whose policies are up for renewal during the shutdown but have not yet submitted payment. This includes:
Homeowners insured through Citizens Property Insurance
Florida homeowners insured through Citizens Property Insurance Corporation who are legally required to maintain flood insurance coverage to keep their policies active. Florida law (as amended in 2022–2023) requires Citizens policyholders with wind coverage to maintain flood insurance if: The replacement cost of the dwelling is $500,000 or more, or The property is located in an SFHA.
Properties with Mortgages in SFHAs
Mortgage holders with properties in SFHAs are required under federal law to maintain active flood insurance as a condition of their loan. Private lenders also almost always require borrowers to keep flood insurance in force for the life of the loan. Failure to renew a flood policy constitutes a violation of loan terms, which can lead to lender-imposed force-placed coverage (at any premium) or other consequences.
Current NFIP Policyholders’ Payment Options:
For current policyholders whose coverage expires during the shutdown, payment options are very limited.
NFIP Online Payments
Normally, most would use the online payment portal at https://my.nfipdirect.fema.gov/ , but as of this writing, the system cannot locate active policies to process payments. Anyone attempting to pay online is met with the following error message:
“We were unable to find a policy with this information. Please try again or contact your agent.”
NFIP Payments by Check or Money Order
The only remaining payment option is to send a paper check or money order by certified mail. The payment slip included with the renewal notice sent to current policyholders states:
“All checks will be converted into Electronic Funds Transfer (EFT). In the event of insufficient funds, we will attempt to make the transfer up to two times. The payor can submit a payment by certified mail, and the payment receipt date is the certified mail date. This also includes reputable third-party delivery services that provide proof of the actual mailing and delivery date to the insurer.”
The key point is that “the payment receipt date is the certified mail date.” This means that as long as the policyholder can prove the payment was mailed before the policy expiration, the payment should be considered received on time, even if processing is delayed. This helps prevent a lapse in coverage while NFIP operations are paused. It is important to follow the instructions in your renewal notice / payment slip and keep records of the following items:
- Envelope Contents:
Scan or take a picture of the envelope contents, usually check / money order and payment slip. - Postmark:
Take a picture of the postmarked envelope and ensure that receiver, sender and postmark are clearly legible. - Cashier Receipt:
Keep the receipt as proof of payment. - Mail Receipt:
Keep the green Certified Mail Receipt, which should be stamped by the post office. - Tracking Information:
Save a PDF or screenshot of the USPS tracking history and delivery status as proof that the mailed item was delivered.
Retain these items as proof that the insurance premium payment was submitted on time should any issues or questions regarding the policy renewal arise in the future.
Government Shutdown - Implications for Real Estate Transactions
For both buyers and sellers, the pause in policy issuance can cause delays in real estate closings where proof of flood insurance is required. Mortgage lenders typically mandate flood insurance for properties in high-risk zones, and without NFIP issuance, these transactions may stall unless some alternative private market coverage is secured.
When Will NFIP Resume operations?
The NFIP will resume normal operations once federal funding is restored. Policy applications, renewals, and endorsements submitted during the shutdown will not be processed until that time. Once operations restart, there may be a backlog, therefore policyholders should plan for processing delays.
