National Flood Insurance Program paused during federal government shutdown

Nov. 4, 2025

Salem – The Oregon Division of Financial Regulation (DFR) is alerting consumers that the National Flood Insurance Program (NFIP) is currently paused due to the federal government shutdown. The congressional authorization for the program lapsed, which is affecting policyholders trying to renew coverage and people buying homes across the country, including Oregon.

DFR wants to make sure Oregonians understand how this may affect them, what steps to take, and provide resources. During the federal government shutdown:

• No new or renewed NFIP policies. NFIP cannot issue new policies or renew existing ones until Congress reauthorizes the program. 
• Current NFIP policies stay active. If you already have a flood insurance policy through NFIP, it will stay in effect until its expiration date. 
• Claims may still be paid, but delays are possible. NFIP will continue paying claims with the funds it has on hand. If those funds run out during the shutdown, payments could be delayed. 
• Some home sales could be delayed. If you are buying a home in a high-risk flood area, flood insurance is usually required for federally backed loans. Without access to NFIP policies, closings may be postponed until the program resumes. 
• Private flood insurance may be an option. Some private insurance companies offer flood policies. These can provide coverage during the NFIP lapse.

What you can do:

• Check your policy. If your flood insurance renewal is approaching or your application is pending, immediately contact your insurance agent to learn about your options.
• If you are buying a home in a flood zone, be aware. Let your real-estate agent, lender, and insurance agent know about NFIP's pause. You may need to explore private flood insurance to keep your closing on track.
• Ask about private options. Some insurance companies can provide flood coverage through the private market. Talk to your agent to compare coverage and costs.
• Keep your coverage current. If you already have NFIP coverage, continue making your payments and keep your documents handy. Your policy remains valid until it expires.
• Stay informed. Once Congress reauthorizes NFIP, new and renewal policies will start again. For the latest information, it is always best to talk to your insurance agent.

“While we hope Congress acts quickly to restart the NFIP, this reminds us how important it is to be prepared for flooding and to know your insurance options," said TK Keen, Oregon's acting insurance commissioner. “If you have questions or problems, our advocates are ready to help."

DFR's consumer advocates can be reached at 888-877-4894 (toll-free) or dfr.insurancehelp@dcbs.oregon.gov. For more information, go to floodsmart.gov.

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About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon's largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.