Salt Lake City, Utah — Thousands of homebuyers are finding themselves in limbo as the ongoing federal government shutdown halts new flood insurance policies from the National Flood Insurance Program (NFIP). With hurricane season still active across much of the country, many buyers in flood-prone regions are now scrambling to secure coverage before closing on their homes.

The federal government officially shut down on October 1, 2025, after Congress failed to pass a funding bill — suspending operations at multiple agencies, including FEMA and NOAA, and pausing the issuance and renewal of NFIP flood policies. The timing has created a ripple effect in coastal and flood-zone markets across the U.S., where lenders often require active flood coverage before approving mortgages.

During the lapse, companies like FloodPrice.com — which normally allow homeowners to compare NFIP and private flood insurance options side by side — can only provide quotes from private flood insurers. These private carriers continue to issue new and renewal policies while FEMA’s NFIP program remains offline.

“Homebuyers who expected to rely on the NFIP may now find their financing or closings delayed unless they turn to private flood options,” said Brian, spokesperson for FloodPrice.com. “We’re seeing increased demand in many states, where thousands of NFIP-backed policies exist, and private policies are becoming the only viable option during this lapse.”

According to FEMA, more than 4.7 million Americans depend on the NFIP for flood protection — and roughly 1.8 million of those policyholders are in Florida alone. While existing NFIP policies remain active, the shutdown means no new policies or renewals can be processed until Congress restores funding. NOAA, which supports flood forecasting and mapping, has also limited operations, creating further uncertainty for risk assessments and new development approvals in flood zones.

A Temporary Pause, but Real-World Consequences

Industry experts warn that even a short NFIP lapse can have major effects on real estate transactions and local economies. During previous shutdowns, the National Association of Realtors estimated that up to 40,000 home sales per month could be delayed or canceled due to flood insurance lapses.

For now, private flood insurers remain fully operational, providing a much-needed safety net. FloodPrice.com continues to help homeowners explore private flood insurance options online — offering coverage from top-rated carriers and shopping for the lowest available prices among its network of insurers.

Even as Washington works toward a funding resolution, flood risk doesn’t pause. Homebuyers in affected areas should act quickly to ensure they have coverage in place before closing.

For more information on comparing flood insurance options, visit FloodPrice.com.

Media Contact

Company Name: FloodPrice.com

Contact Person: Nancy Reveles

Email: support@floodprice.com

Website: https://www.floodprice.com/