Organizations representing the insurance, real estate, mortgage banking, financing, and property management industries sent a letter to Congressional leaders calling for quick action to extend the National Flood Insurance Program (NFIP).
The program expires at the end of Sept. 30. Without reauthorization, the Federal Emergency Management Agency (FEMA), administrator of NFIP, would stop selling new flood insurance policies.
Related: National Flood Insurance Program Once Again on the Verge of Expiration
“Americans deserve certainty and stability in the flood insurance marketplace so that they can protect their homes, businesses and loved ones,” the 16 organizations said in the letter to leaders of the House and Senate. They said a lapse of NFIP would leave millions at risk and disrupt the purchase of flood insurance in tens of thousands of communities.
A total shutdown of the federal government looms at midnight if Congress does not agree on a budget. The groups said they support the “NFIP Extension Act of 2026,” which would extend NFIP for a year.
“This is what people hate about government, letting partisan politics put people at serious risk,” said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC). “Even if [hurricanes] Imelda and Humberto don’t make landfall in the U.S., they could impact the coast, and we’ve still got two months of hurricane season to go. We know flooding can happen anywhere; Congress should know it too. If they can’t keep the government running, the least they can do is pass a standalone extension and let Americans protect themselves through the NFIP.”
Read the entire letter: 2025 NFIP Extension Letter
NAMIC was joined in signing the letter by industry association peers the American Property Casualty Insurance Association, The Council of Insurance Agents and Brokers, Independent Insurance Agents & Brokers of America, Reinsurance Association of America, and Wholesale & Specialty Insurance Association.
About 1,300 property sales per day and about 40,000 closings per month would be impacted if NFIP lapses, according to the National Association of Realtors (NAR). According to its research, NFIP supports about 500,000 home sales annually.
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