The odds of another government shutdown at the end of the month may be decreasing, but flood insurance agents and brokers should have alternatives ready to go if Congress is unable to come to an agreement and the National Flood Insurance Program (NFIP) lapses again.
On November 12, 2025, the last — and longest government shutdown — ended after 43 days with the signing of a stopgap measure which retroactively reauthorized government programs including the NFIP through January 30. The legislation brought relief to home and business owners left in limbo if they needed to renew, procure or modify their NIFP-provided flood coverage during that six-week period.
While lawmakers passed an appropriations package on January 8 to shore up funding for a half-dozen departments and agencies, it will be a mad dash to meet the January 30 deadline. Representatives in both the House and Senate will need to agree on several more appropriations bills to avoid a shutdown — and another NFIP interruption.
Agents and brokers helping clients with flood renewals during this period of uncertainty should consider the merits of the private flood market, and coverage such as TMH2O. Not only are private flood policies unaffected by government shutdowns, private flood offers broader coverage, greater flexibility, no waiting period, federal fees, or co-insurance penalties.
Learn about private flood benefits vs. the NFIP below, and click here to get appointed to quote, bind, and issue primary residential flood policies today.
| TMH2O | NFIP | |
| Residential Building Limit | $1,000,000 | $250,000 |
| Personal Property Limit | $500,000 | $100,000 |
| Deductible Options | Six options between $500-$250,000 | Options start with $1,250-$10,000 |
| ALE/Loss of Rents | $2,500 included; option to purchase $50,000 |
Not available |
| Waiting Period | No | 30 Days |
| Additional Federal Fees | No | Yes |
| Co-insurance Penalty | No | Yes |
| Special Sub-Limits for Basements and Enclosures |
Yes | No |
| Increased Cost of Compliance | $30,000 included | $30,000 for additional fee |