Government shutdown (lapse) and National Flood Insurance Program (NFIP) things you need to know!
The NFIP may not issue new contracts for flood insurance during a lapse in authority unless Congress passes legislation reauthorizing the NFIP. A lapse in authority will not affect most of the 5 million flood insurance policyholders nationwide.
Policies that are in force will remain in force, and NFIP insurers will continue to pay claims under those policies during a lapse.
If I purchased flood insurance coverage before a lapse in authority will my policy be issued?
Yes, your insurance company will issue the policy if you applied for coverage prior to a lapse AND your flood insurance company receives application and premium payment within 10 days from the application date.
My flood insurance policy is set to expire on the day after the lapse in authority. I received my renewal notice already from my insurance company and sent my payment to my insurance company before the lapse in authority. Will my insurance policy be renewed?
Yes. As long as your insurance company sent the renewal notice before lapse in authority and the insurance company received your payment before the end of the 30-day renewal grace period, the company may renew your policy. However, NFIP insurers may not issue new renewal notices during a lapse in authority.