Oregon — The Oregon Division of Financial Regulation (DFR) is alerting consumers that the National Flood Insurance Program (NFIP) has paused operations because its congressional authorization lapsed amid the federal government shutdown. The interruption is impacting policyholders attempting to renew coverage and homebuyers requiring flood insurance for federally backed loans.
During the shutdown, no new or renewed NFIP policies can be issued until Congress reauthorizes the program. However, existing NFIP policies will remain active until their expiration dates. Claims may still be processed, though payments could face delays if the program’s remaining funds are depleted.
The suspension may also stall home sales in flood-prone areas. “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,” DFR cautioned.
Oregonians are encouraged to check their policies, contact insurance agents about renewals or pending applications, and explore private flood insurance options. “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 recommends keeping flood insurance documents current and continuing premium payments to ensure coverage remains valid. Once Congress reauthorizes NFIP, new and renewal policies will resume immediately.
For assistance, Oregonians can contact DFR’s consumer advocacy team or visit its website for updates on the program’s status.
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