You are here:HomeIssuesFlood Insurance2010Flood Insurance Program in Lapsed Status Until Congress Acts

Flood Insurance Program in Lapsed Status Until Congress Acts

Congress adjourned on March 26 after failing to extend the authorization for the National Flood Insurance Program (NFIP). As a result of Congress' inaction, the...
April 7, 2010

Congress adjourned on March 26 after failing to extend the authorization for the National Flood Insurance Program (NFIP). As a result of Congress' inaction, the federal flood insurance program's authority to write new policies ended on Sunday, March 28 at midnight.

Until a reauthorization is passed, insurance agents will not be able to provide new or renewal flood insurance policies required by lenders to close on some real estate sales. A similar hiatus occurred at the end of February when the program lapsed for two days until Congress renewed it on March 2. But this time, the hiatus will be longer as Congress is not scheduled to reconvene until April 12. At that time, lawmakers are expected to renew the NFIP retroactively. While no new policies can be issued during a lapse in NFIP authorization, consumers with current flood insurance policies remain covered. Claims payments are not affected. It is expected that Congress will consider a retroactive reauthorization of the NFIP when it reconvenes on April 12.

On March 29, FEMA issued a bulletin with two sets of Frequently Asked Questions about the program's hiatus: a consumer-oriented version and a more technical version. You can access the FEMA memo and FAQs here:

Also, FEMA issued this guidance bulletin on Friday afternoon March 26.

In this memo, FEMA advises that as a result of the expiration, "the Program will not be allowed to operate and you are to be guided by Bulletin W-09068, issued October 27, 2009, and titled 'Recommendations/Guidance for Possible NFIP Authority Lapse and Hiatus.'

In addition, PIA National issued practice guidelines for agencies following a previous NFIP hiatus. Click here to review this memo.

Filed under: