Congress did not reauthorize the National Flood Insurance Program (NFIP) by the Tuesday deadline, according to the Louisiana Department of Insurance. Until the program is reauthorized, NFIP policyholders should be aware of several key points regarding the status of their flood insurance coverage.
- The NFIP cannot issue new or renew existing flood insurance policies. Consumers who have a pending flood policy application or renewal should confirm with their agent that they will have coverage.
- NFIP policies currently in force will continue until the end of the current one-year policy term.
- The NFIP will continue to adjust and pay claims for its policyholders using available funds. If those funds are depleted, claims payments would be delayed until additional funds become available as the NFIP collects premiums or Congress provides for additional borrowing authority.
- Residential and commercial property owners are required to purchase flood insurance if the property is in a Special Flood Hazard Area (SFHA) and is in a community that participates in the NFIP. Without flood insurance, real estate transactions in an SFHA might be delayed or prevented until coverage is available.
- Private flood insurance may be available to meet the requirement to purchase flood insurance for a real estate transaction. Consumers should contact a property insurance agent for assistance in identifying an insurance company that may provide flood coverage.
