The National Flood Insurance Program (NFIP) was temporarily reauthorized this past November with the passage of HR 5371, which ended the 43-day shutdown of the federal government. The NFIP was temporarily extended until Jan. 30, 2026 which is quickly approaching.
Congress must periodically renew the NFIP’s statutory authority to operate. On Nov. 12, 2025, the president signed legislation passed by Congress that extended the National Flood Insurance Program’s (NFIP’s) authorization. The NFIP provides flood insurance to property owners, renters and businesses, and having this coverage helps them recover faster when floodwaters recede. The NFIP also works with communities required to adopt and enforce floodplain management regulations that help mitigate flooding effects which also includes refining and enhancing existing flood maps through hydrology and hydraulic studies, LOMR's and CLOMR's, a professional service that Flood and Coast Engineering (FCE) can provide to financial groups, realtors, commercial developers and residential property owners throughout the southeast United States.
The expiration of the NFIP’s authority to provide new flood insurance contracts has potentially significant implications due to the mandatory purchase requirement (MPR). By law or regulation, federal agencies, federally regulated lending institutions, and government-sponsored enterprises must require certain property owners to purchase flood insurance as a condition of any mortgage that these entities make, guarantee, or purchase. Property owners, both residential and commercial, are required to purchase flood insurance if their property is identified as being in a Special Flood Hazard Area (SFHA, which is equivalent to having an estimated 1% or greater risk of flooding every year) and is in a community that participates in the NFIP. Without available flood insurance, real estate transactions in an SFHA potentially would be significantly hampered.
Should the NFIP’s authorization lapse, FEMA would still have authority to ensure the payment of valid claims with available funds. However, FEMA would stop selling and renewing policies for millions of properties in communities across the nation. Nationwide, the National Association of Realtors estimates that a lapse might impact approximately 1,300 property sales each day, roughly 40,000 closings per month (FEMA 2025.) NFIP reauthorization is an opportunity for Congress to take bold steps to reduce the complexity of the program and strengthen the NFIP’s financial framework so that the program can continue helping individuals and communities take the critical step of securing flood insurance.
Flood and Coast Engineering would be happy to answer any questions you may have regarding the NFIP, special flood hazard areas, and effective flood maps, and how it may effect your property or future development plans within the southeast United States. Please feel free to give us a call at +1 850-904-0788 or send us a message here: Contact Us