Florida homebuyers are facing unexpected delays and deal-breaking hurdles as the federal flood insurance program hits a standstill.
Federal flood insurance program expired on September 30, 2025. Homebuyers in flood-prone areas are facing delays and potential deal cancellations due to the lack of flood insurance. Watch the video below to find out how many active flood insurance policies are affected by the program’s lapse. Florida homeowners face uncertainty as federal flood insurance program expires
BROADCAST TRANSCRIPT:
The federal flood insurance program has expired, and that pause is creating uncertainty for homeowners and buyers across Florida.
FEMA says the National Flood Insurance Program, or NFIP, expired at midnight on Sept. 30 when Congress failed to approve new funding.
Until the program is reauthorized, no new or renewal flood insurance policies can be issued.
That pause is leaving homebuyers in flood-prone areas waiting and, in some cases, walking away from deals.
Mortgage lender and FSU graduate Ari Tokar says hes expecting contract delays because buyers cant secure the insurance required to close.
If there were a case where a property was not covered by the private market, that loan would not be able to close because lenders require flood insurance to be in place if it is in a flood zone at the time of closing, Tokar said.
Nationwide, FEMA reports more than 4.7 million active NFIP policies are protecting homes, businesses, and properties valued at over $1.3 trillion.
Those numbers show how deeply the program is tied to the housing market, especially in coastal states like Florida, where flood risk is high and coverage requirements are common.
The Florida Department of Financial Services says most flood insurance in the state is written through the NFIP.
Private flood insurance is still available under Florida law, and regulators say homeowners should explore those options to avoid gaps in protection.
Tokar says preparation is key for anyone buying or refinancing during the lapse.
The best advice right now is just do your due diligence upfront, knowing that youre not necessarily gonna have the full game of insurance options. Make sure that you get your quotes earlier on in the process than sometimes people do. Thats really important because you need to know if your monthly payments gonna be higher, if your cash-to-close expectations are gonna be higher, or, in the worst-case scenario, if you might not qualify for a loan on a particular property that you thought you would qualify for previously, Tokar said.
Tokar says USDA loans for rural areas are among the most affected during the government shutdown, and the longer it continues, the more closing delays buyers can expect to see.
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