About six months after Congress passed a short-term reauthorization, the National Flood Insurance Program will soon expire—a prospect that could cause coverage lapses for policyholders with expiring contracts at the traditional height of hurricane season, and major problems for real estate transactions.
Components of NFIP will cease when September ends, just as a polarized Congress threatens a government shutdown over the federal budget, which also faces an Oct 1 deadline.
In the event of a lapse, the Federal Emergency Management Agency, administrator of NFIP, would still make sure valid claims were paid with available funds.