What Pinellas County Homeowners Need to Know About the National Flood Insurance Program (NFIP) Lapse
If you own property in Pinellas County—or are in the process of buying or selling—you’ve likely heard that the National Flood Insurance Program (NFIP) expired at midnight on September 30, marking the end of the federal fiscal year. This lapse means homeowners are temporarily unable to secure new flood insurance policies or renew existing ones through the NFIP until Congress reauthorizes the program.
While the situation may sound alarming, there are some key facts you should know—especially if you live, buy, or sell property in a flood-prone area of Pinellas County.
What Happens During an NFIP Lapse?
During the lapse, the NFIP cannot issue new or renewed flood insurance policies. However, here’s what remains in effect:
Existing policies remain active until their expiration date (including a 30-day grace period).
Claims will continue to be processed and paid, provided the NFIP has available funds. If those funds run out, payments may be delayed until Congress authorizes more.
Private flood insurance policies are not affected—homeowners and buyers should explore these as potential options.
If you have a pending NFIP policy application or renewal, confirm with your insurance agent to ensure your coverage status.
How Does the NFIP Lapse Affect Homebuyers and Real Estate Transactions?
Flood insurance often plays a critical role in real estate closings, especially in coastal regions like ours. Here’s what this temporary lapse could mean for buyers and sellers:
Assuming an existing policy: In some cases, buyers may be able to assume a seller’s current NFIP policy.
Lenders can still issue loans: Mortgage lenders can continue processing loans during an NFIP lapse but are still required to conduct flood risk determinations and provide borrower notices.
Private flood insurance is an option: Many lenders now accept private flood insurance that meets federal requirements. This can be an excellent alternative for maintaining protection and moving transactions forward.
If you’re buying or selling a home in Pinellas County, it’s crucial to work closely with your Realtor®, lender, and insurance provider to explore all available coverage options and ensure a smooth closing process.
Do Local Floodplain Regulations Still Apply?
Yes. Even during the NFIP lapse, Pinellas County and local municipalities must continue enforcing floodplain management regulations. These are legally adopted land-use standards designed to protect property owners and preserve community eligibility for flood insurance discounts once the NFIP resumes operations.
Unincorporated areas of Pinellas County currently enjoy up to a 40% discount on NFIP premiums because of the County’s active participation and compliance with FEMA’s Community Rating System (CRS).
A Brief History of NFIP Reauthorizations
The last long-term reauthorization of the NFIP occurred in 2012 under the Biggert-Waters Flood Insurance Reform Act. Since 2017, Congress has passed 33 short-term reauthorizations, highlighting the ongoing uncertainty surrounding the program’s future.
What Homeowners Should Do Now
Check your current policy status with your insurance agent.
Consider private flood insurance to maintain coverage during the lapse.
Stay informed by following updates from FEMA and Pinellas County.
Plan ahead for future renewals—don’t wait until the last minute to confirm coverage.
Flood insurance is a critical part of homeownership in Pinellas County. Whether you’re a longtime resident or a first-time buyer, understanding these changes can help protect your property and peace of mind.
Disclaimer
This article is for informational purposes only and should not be considered legal or financial advice. Homeowners and buyers should consult with a licensed insurance professional or legal advisor for guidance specific to their situation and for the latest updates on the NFIP.
Source and Further Reading
For more details, visit the official Pinellas County update:
The National Flood Insurance Program is on hold – What to Know