On Friday, December 21, 2018, President Trump signed into law a measure reauthorizing the NFIP until May 31, 2019. However, the partial federal government shutdown that went into effect on Dec. 22 could affect the NFIP’s operations.
FEMA has issued the following guidance statement regarding the partial Federal Gov’t shutdown.
Policies that were in force before midnight on December 21, 2018 remain in force. The NFIP will process and pay claims under those policies as usual from the National Flood Insurance Fund and the National Flood Insurance Reserve Fund until depleting these funds, but will not have authority to borrow any additional funds from the U.S. Treasury. Existing flood insurance policies remain valid regardless of FEMA’s capacity to pay claims. FEMA and Congress have never failed to honor the NFIP’s contracts with policyholders.
The NFIP and its WYO partners may not issue new contracts for flood insurance during a lapse in authority unless Congress passes legislation reauthorizing the NFIP. During a lapse in authority, the NFIP will have limited ability to issue new policies, issue increased coverage on existing policies, or issue renewal policies.