How a Government Shutdown Could Impact the NFIP and Flood Insurance Policies – Good Good Flood

How a Government Shutdown Could Impact the NFIP and Flood Insurance Policies

U.S. Capitol building representing government shutdown impacting National Flood Insurance Program.

Industry Update: What a Potential Government Shutdown Means for Flood Insurance

U.S. Capitol building representing government shutdown impacting National Flood Insurance Program.
A potential government shutdown could pause NFIP flood insurance, impacting homebuyers and lenders nationwide

The risk of a U.S. government shutdown on September 30, 2025, has increased after recent developments in Congress. The House of Representatives narrowly passed a short-term funding bill to extend government operations through November 21, but the Senate rejected competing proposals. With the House scheduled to recess until after the funding deadline, the likelihood of a shutdown has grown.

This matters for homeowners, realtors, and lenders because during a shutdown, the National Flood Insurance Program (NFIP) will be unable to issue new policies or renew existing ones. That could disrupt real estate closings across the country where flood insurance is mandatory.

What This Means for You

  • Homebuyers: If you are under contract in a flood zone, your closing could be delayed if you rely solely on NFIP coverage.

  • Realtors and Lenders: Transactions in process may stall without proof of flood insurance, creating last-minute complications.

  • Current Policyholders: If your renewal date falls during a shutdown, you could face a lapse in coverage.

How Good Good Flood Protects You

At Good Good Flood, we work with more than 15 private flood carriers that will continue to issue policies and support closings regardless of a government shutdown. This means:

  • Home closings can move forward without interruption.

  • Buyers and sellers avoid costly delays.

  • Realtors and lenders can rely on coverage being in place.

In short, while NFIP may pause, your flood insurance coverage doesn’t have to.

The Next Step

Government funding debates are outside our control, but protecting your home and keeping real estate deals on track is not. By working with an agency that has access to both NFIP and private flood insurance carriers, you can ensure coverage continues in any scenario.

If you have an upcoming closing or renewal, reach out to Good Good Flood today and let us make sure your coverage stays in place—shutdown or not.