Last updated: October 16, 2026. Status: the National Flood Insurance Program is running on a short-term extension that ends at 11:59 p.m. on December 11, 2026.
What happens if the NFIP expires? In short, policies already in force stay in force, but the National Flood Insurance Program (NFIP) can’t issue new policies or renewals until Congress reauthorizes it. For Michigan homeowners, that matters most if your renewal date or your home closing lands near December 11, 2026. Here is what an NFIP lapse does, what it doesn’t, and what to do now.
What is the NFIP, and when does it expire?
The NFIP is the federal flood insurance program run by FEMA. It covers nearly 4.5 million policies and about $1.3 trillion in coverage nationwide, according to the Congressional Research Service. Congress has to keep reauthorizing it, and it has mostly done so through short-term extensions. Right now the program’s authority is set to expire at 11:59 p.m. on December 11, 2026, unless Congress extends it again.
What happens if the NFIP expires? Your current policy
A policy that’s already in force doesn’t disappear. Contracts entered into before the expiration continue through the end of their policy term, and FEMA can keep adjusting and paying claims from premium income and its reserve fund.
The catch is borrowing. During a lapse, FEMA’s authority to borrow from the U.S. Treasury drops from about $30 billion to $1 billion. That means a very large flood event during a lapse could slow claim payments until Congress acts. For most homeowners, the practical advice is simple: keep your policy active, keep paying your premium, and don’t cancel.
What happens if the NFIP expires? Renewals and new policies
This is where a lapse bites. According to the National Association of Realtors, the NFIP can’t issue new policies or renewal policies until it’s reauthorized. During the 43-day lapse in late 2025, no new federal flood insurance policies were sold or renewed, as Insurance Journal reported.
If your renewal date falls close to December 11, talk to your agent now instead of waiting. Ask what your options are if the date passes without an extension, including whether a private policy makes sense as a backup.
How an NFIP lapse can delay a home closing
If you’re buying a home in a FEMA high-risk flood zone, your lender will usually require flood insurance, and traditionally that has meant an NFIP policy. When the NFIP can’t write a new policy, closings can stall. When the program lapsed in 2010, estimates suggested more than 1,400 home sales a day were delayed or canceled.
In a lapse, federal regulators generally suspend the mandatory purchase requirement, so lenders decide for themselves whether to close. Some pause; some don’t. There are workarounds: insurers may assign the seller’s existing NFIP policy to the buyer, and lenders may accept a private flood policy that meets federal requirements. If you’re buying, our guide to flood insurance and your home closing in Michigan covers what to ask and when.
Does an NFIP lapse affect private flood insurance?
No. Private flood insurance is sold by private insurers and doesn’t depend on the NFIP’s authority, so a lapse doesn’t cancel it or stop it from being written. Availability, pricing, and terms do vary, so compare coverage limits and deductibles and not only the price. For a side-by-side look, see how private flood insurance compares with NFIP coverage.
Has the NFIP expired before?
Yes. The program lapsed four times in 2010 and 2011, and again during the fall 2025 government shutdown. Congress has passed dozens of short-term extensions since 2017, and it has usually reauthorized the program retroactively after a lapse. A retroactive fix helps, but it doesn’t give a buyer back a closing date that already slipped, or put a missed renewal back on the calendar.
What to do now if the NFIP expires on December 11
Now that you know what happens if the NFIP expires, here is how to get ready:
- Check your renewal date. If it falls within a few weeks of December 11, call your agent now.
- Buying or refinancing? Ask your lender and agent whether your closing could land near the deadline, and whether assigning the seller’s policy or buying a private policy would work.
- Line up a backup. Compare NFIP and private options so you have a plan B before you need one.
- Keep your current policy active. Don’t cancel an NFIP policy because of the deadline.
- Watch the date. Congress has acted at the last minute before. Check back here, because we’ll update this page.
Not sure where your policy stands? Get an instant flood insurance quote and see your NFIP and private options for your Michigan address.
What happens if the NFIP expires? Quick answers
Will flood claims still be paid if the NFIP expires? FEMA can keep paying claims from premium income and reserves during a lapse, but its ability to borrow drops sharply, so a major flood could slow payments. Report any loss to your insurer right away.
Do I need to cancel my policy if the NFIP lapses? No. A policy already in force continues through its term. Keep paying your premium and check with your agent as your renewal date approaches.
Can I buy flood insurance during a lapse? The NFIP can’t issue new policies during a lapse. Private flood insurance can still be written, subject to underwriting. New policies also typically have a waiting period before coverage starts; how that works is covered in our Michigan flood insurance FAQ.
Is flood insurance still required for my mortgage during a lapse? If your home is in a high-risk flood zone, the requirement normally comes from federal rules that your lender enforces. During a lapse, regulators generally suspend it and lenders decide for themselves, so ask your lender how it’s handling it.
When will Congress extend the NFIP? No one knows. The current deadline is 11:59 p.m. on December 11, 2026, and Congress has often acted close to the wire.
This article is general information, not legal, lending, or insurance advice. Talk to your agent and lender about your own situation. We’ll update this page when the NFIP’s status changes.