Parish and Community News

Congress Did Not Reauthorize the National Flood Insurance Program: Here’s What NFIP Policyholders Need to Know

Congress did not reauthorize the National Flood Insurance Program (NFIP) by the deadline. Until the program is reauthorized, there are several things NFIP policyholders should know about the status of their flood insurance coverage.

• The NFIP cannot issue new or renew existing flood insurance policies. Consumers who have a pending flood policy application or renewal should confirm with their agent that they will have coverage.
• NFIP policies currently in force will continue until the end of the current one-year policy term.
• The NFIP will continue to adjust and pay claims for its policyholders using available funds. If those funds are depleted, claims payments would be delayed until additional funds become available as the NFIP collects premiums or Congress provides for additional borrowing authority.
• Residential and commercial property owners are required to purchase flood insurance if the property is in a Special Flood Hazard Area (SFHA) and is in a community that participates in the NFIP. Without flood insurance, real estate transactions in an SFHA might be delayed or prevented until coverage is available.
• Private flood insurance may be available to meet the requirement to purchase flood insurance for a real estate transaction. Consumers should contact a property insurance agent for assistance in identifying an insurance company that may provide flood coverage

“In anticipation of the expiration of the NFIP if Congress did not act before September 30, 2025, FEMA provided Guidance on Potential Expiration in National Flood Insurance Program (NFIP) Authority in Bulletin W-24020 from December 2024. The bulletin affirms that "during an expiration in authority, a WYO Company or NFIP Direct may not: issue policies for new business, issue policies for requests to increase or add coverage, or issue renewal notices. However, if the NFIP insurer issued the renewal offer prior to the expiration in authority and the NFIP insurer receives the renewal premium before or within the 30-day grace period or extension of time to pay the renewal premium, the NFIP insurer may renew the policy. Renewal notices must be mailed at least 45 days prior to the policy expiration date, meaning that renewals until at least November 14 should be received by policyholders, and these policies can be renewed, even during a lapse”. (Courtesy of CSFI)

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by downloading our LDIConnect mobile app on the Apple App Store or Google Play Store, calling us at 800-259-5300 or visiting ldi.la.gov.