The NFIP was not reauthorized and has lapsed. Here is what that means.
The National Flood Insurance Program (NFIP) lapsed on September 30, 2025, leaving homeowners unable to buy new NFIP flood insurance policies or renew existing policies.
In Oregon, the NFIP has 23,383 policies and $6.5 million in insurance coverage.
Are floodplain regulations on hold during the lapse?
No. Cities and counties must continue enforcing their local floodplain management regulations. These local ordinances are legally adopted local land use standards and FEMA requires cities and counties to continue administering and enforcing their regulations, even when the NFIP is lapsed.
What happens during a lapse?
- The NFIP cannot issue new or renew existing flood insurance policies until the program is reauthorized.
- Consumers who had a pending flood policy application or renewal should confirm with their agent that they have coverage.
- Homeowners with active NFIP policies will still be covered until their expiration date, including a 30-day grace period.
- The NFIP will continue to pay claims for its policyholders, as long as funds are available. If 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.
- Private flood insurance is not affected.
What does the lapse mean for homebuyers?
- In some cases, buyers may be able to assume the seller’s existing NFIP policy.
- Lenders may continue making loans during an NFIP lapse, but must still conduct flood determinations, provide accurate borrower notices, and follow all other flood insurance regulations. They are also expected to manage safety, soundness, and legal risks, and consider private flood insurance options. (see Federal Reserve press release)
- Private flood insurance remains an option.
NORFMA will be hosting a lunch and learn webinar October 15, 2025. Register for the meeting Navigating the NFIP During the Shutdown on the NORFMA website.
Additional Resources
News Coverage
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Associated Press - National Flood Insurance Program is set to expire Tuesday, halting new policies and some home loans
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Realtor.com- Congress Let the National Flood Insurance Program Expire. Here’s Who’s in Trouble First
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The Insurer - NFIP lapse creates opportunity for private flood insurance market
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National Low Income Housing Coalition - Authorization for National Flood Insurance Program Lapses Amid Shutdown
State Comments on FEMA's DEIS
The State of Oregon submitted comments on October 6, 2025, during FEMA's open comment period for their draft environmental impact statement (DEIS) on the integration the NFIP with the Endangered Species Act.
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