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Brief NFIP Lapse Possible as Congress Considers Government Funding

This article originally appeared in Independent Agent.

As of Thu. afternoon, Dec. 2, Congress has not passed government funding legislation to keep the government open beyond tomorrow, Dec. 3.

The National Flood Insurance Program (NFIP) is currently scheduled to expire on the same date as government funding and an extension of the program is tied to government funding legislation.

Although a deal was reached this morning to fund the government and extend the NFIP through Feb. 18, 2022, it remains unclear if the U.S. Senate will be able to move quickly enough to pass the legislation and avoid a brief lapse over the weekend.

Earlier this fall, the Big “I" joined others in the insurance industry and several other interested stakeholders in sending a letter to congressional leadership urging them to extend the NFIP. The Big “I" was the only Main Street agent group to sign the letter.

In September, ahead of another potential NFIP lapse, FEMA released a memorandum to those involved in the NFIP outlining procedures if the program lapses.

The guidance states that during a lapse in authority, a Write-Your-Own (WYO) company may not issue policies for new business or respond to requests to increase or add coverages that are initiated during the lapse. In addition, WYO companies cannot issue renewal notices during the lapse.

Insurance agents and brokers who sell and service NFIP policies should get in touch with the WYO companies that they work with if they have questions about procedures in the event of an NFIP lapse.

The Big “I" will continue to update members through the News & Views e-newsletters on the status of government funding and the NFIP.

About the author

Wyatt Stewart is Big “I" assistant vice president of federal government affairs.


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Lee Loftis

Chief Legislative Officer
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Regan Ellmer

Director of Government Affairs