NFIP Shutdown Stalls Closings--Agents Turn to Private Flood Solutions

SALT LAKE CITY, Oct. 27, 2025 /PRNewswire/ -- As the National Flood Insurance Program (NFIP) faces a temporary shutdown due to stalled reauthorization (Information current as of press time.), insurance agents across the country are urgently seeking alternatives to protect homeowners in flood-prone areas. The disruption has created quoting delays, policy lapses, and complications for homebuyers trying to close on properties in mandatory flood zones.

NFIP Disruption Impacts Closings and Coverage
The NFIP's lapse has left agents unable to quote or bind policies through federal systems, creating uncertainty for buyers and lenders alike. In many cases, flood insurance is required to close a mortgage, and without access to NFIP policies, agents are reporting stalled transactions and frustrated clients.

"Homebuyers are stretched thin, every dollar matters. When closings stall because of a government shutdown, the stress is real. CATcoverage gives agents, mortgage professionals, and buyers a way to keep deals moving and help protect affordability," said Marissa Skinner, Managing Director at Poulton Associates.

Each month, hundreds of thousands of homes are sold across the U.S., with a significant portion located in flood-prone regions. Many of these transactions require flood insurance to meet lender requirements—requirements now complicated by the NFIP's temporary shutdown.

A Pattern of Instability
This is not the first time the NFIP has faced operational uncertainty. Since 2017, the program has undergone 33 short-term reauthorizations, underscoring a pattern of systemic instability that continues to disrupt agents, lenders, and homeowners alike.

These repeated lapses have prompted growing calls for reform and increased interest in private flood insurance solutions that offer continuity and reliability.

NCIP Private Flood Offers Speed and Stability
In a market defined by delays and uncertainty, NCIP Private Flood gives agents a reliable way to quote quickly, place coverage confidently, and keep transactions moving. Agents already placing flood insurance through a facility widely recognized for its longevity, advanced technology, and operational stability have reported fewer disruptions. To stay competitive, producers should consider offering NCIP Private Flood—an agent-first solution that delivers speed, flexibility, and stability when it matters most.

• Faster quoting: Private flood carriers like CATcoverage enable agents to quote NCIP Private Flood in minutes—keeping transactions on track even during NFIP disruptions.
• Broader coverage options: NCIP Private Flood policies offer flexible terms and underwriting, helping agents serve a wider range of homeowners.
• High coverage limits: NCIP Private Flood can offer up to $5 million for buildings and $500,000 for contents, supporting higher-value properties.
• Lender-friendly payment options: Policies can often be paid 14 days after closing and escrowed with the loan—streamlining the process for both agents and lenders.
• Competitive pricing: NCIP Private Flood is priced 20% lower than NFIP approximately 75% of the time—helping agents retain clients and grow revenue.

Quote NCIP Private Flood in Minutes

CATcoverage.com is built for agents who need speed, stability, and control. Producers can quote NCIP Private Flood in minutes, retain their book of business, and offer clients a smarter alternative to federal flood programs. Whether placing new business or saving a renewal, agents are using CATcoverage to stay ahead—and grow revenue in the process.

P OULTON ASSOCIATES LLC
Poulton Associates, LLC is a Utah-based managing general agent and insurance brokerage with expertise in property and casualty insurance. As administrator of the Natural Catastrophe Insurance Program, they make the program available to insurance professionals nationwide at www.CATcoverage.com.

SOURCE Poulton Associates, LLC