The National Flood Insurance Program (NFIP) was up for renewal in September, and renewal was pushed back to Dec. 8.

Then it was pushed back to Dec. 22, which is Friday. It looks as though nothing will happen to extend it, so what happens to coverage?

The Federal Emergency Management Association (FEMA) has issued guidance so companies know how to proceed. The plan will have a lapse in authority, which means the write-your-own (WYO) companies may not issue policies for new or renewal business, or increase or add coverage to existing policies.

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New coverage

For requests to increase or begin coverage that are on or before the last day of effective authorization, if the carrier receives the application and payment within the lapse period and within 10 days of the date of request, the policy or coverage change may be issued and effective on the requested date in accordance with standard rules. For example, the authorization lapses Dec. 22; an application is effective Dec. 21, and the carrier receives the application and the premium payment on Dec. 28.

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Christine G. Barlow, CPCU

Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.