President Trump ended the 43-day government shutdown on November 12, 2025 by signing the Continuing Appropriations Act (H.R. 5731), which retroactively reauthorizes the National Flood Insurance Program (NFIP) to October 1, 2025. This authorization extends through January 30, 2026.
While this extension brings relief to millions of homeowners and business owners, it is only a stopgap measure. If Congress fails to reach an agreement, policyholders could be in limbo once again — a fate that can be avoided by looking for coverage in the private flood market.
With this current reauthorization, NFIP insurers can:
- Issue policies effective as of the date applications and payments were received (subject to waiting periods).
- Process and pay claims for covered losses that occurred during the lapse, in accordance with the Standard Flood Insurance Policy (SFIP).
However, another NFIP interruption is possible. With less sophisticated mapping and modeling than is available in the private market, coupled with lapses and funding issues, your NFIP policyholders may be paying higher rates for less reliable flood coverage. Agents and brokers should educate their customers about these risks and the flood insurance options available in the private flood market. This is particularly important for clients whose policies are up for renewal in early 2026.
Private flood insurance offers broader coverage, greater flexibility, and no waiting period, federal fees or co-insurance penalties. However, it is important to assess each client’s flood needs and eligibility. Staying informed and proactive will help ensure clients are protected, regardless of future Congressional action.
Contact PrivateFloodSolution@tmhighland.com for more information.