US National Flood Insurance Program status

The National Flood Insurance Program (NFIP), managed by FEMA, is approaching a December 12 expiration deadline. This follows a history of frequent short-term extensions, with the Congressional Research Service noting 36 such extensions since fiscal year 2017. While the program covers approximately 4.5 million policies, its ability to borrow from the U.S. Treasury has decreased from over $30 billion to $1 billion.

In response to evolving needs, FEMA has launched a new digital self-service tool on FloodSmart.gov. This tool allows residents in approximately 22,700 participating communities to obtain quotes and purchase policies entirely online without an insurance agent, expanding upon a 2024 update that only allowed for online quoting. Users can obtain a quote by providing basic information about their building and then choose to either complete the purchase online in minutes or share the quote details with a licensed insurance agent. For those without an agent, the website provides contact information for three licensed state insurance agents.

FEMA Administrator Cameron Hamilton stated that the tool aims to make it easier for people to reduce financial risk and protect their property. The agency noted that this digital shift aligns with the administration’s ‘America First Resilience Strategy,’ which promotes a risk-informed approach to reduce dependence on federal assistance. The NFIP currently provides approximately $1.2 trillion in coverage for roughly 4.4 million policyholders across the United States.