Gulf Coast homeowners face flood insurance uncertainty as funding deadline looms

The National Flood Insurance Program (NFIP), managed by FEMA, is set to run out of funding on Sept. 30, creating uncertainty for Gulf Coast homeowners and realtors during hurricane season. "If we can't get flood insurance, we can't close on those homes, and the lender requires it. So we have to have it to close. So, it's scary," said Karen Montgomery, a Gulf Coast realtor. Most homes on the Gulf Coast require flood insurance to close on loans. Without it, Montgomery said she cannot close sales and would go without a paycheck. "We depend on those commissions to fund our homes, our households, so it would be very disappointing if we had to wait on those," Montgomery said. Congress must pass an extension to prevent the NFIP from running out of money. Lawmakers are set to return to work on Aug. 31, but the Senate will not reconvene until Sept. 14. "We are in hurricane season, and we want to make sure people are taken care of," said Angie Nixon, a U.S. Senate candidate. Efforts to reach Florida's two U.S. Senators and Representatives Greg Steube and Byron Donalds for comment were unsuccessful. Mark Friedlander with the Insurance Information Institute warned of the potential consequences if the program lapses. "If we have a significant flood event after Oct. 1, there is a good chance your claim processing could be delayed," Friedlander said. "When the funding expires, no new policies can be issued, and renewals cannot be processed," he added. Currently, 1.7 million homeowners in Florida have flood insurance. "I would love to be able to say relax, everything is going to be fine, but not 100% guarantee," said Doug Nellans with The Insurancenter. History shows the NFIP has lapsed before, including a 53-day lapse in 2010 and a 43-day lapse in 2025, both during hurricane season. "My biggest advice to anybody is we're about 30 days away from this. If you have a renewal offer that is put in front of you, don't delay. Send in your payment right away," Nellans said. DOWNLOAD the free Gulf Coast News app for your latest news and alerts on breaking news, weather, sports, entertainment, and more on your phone or tablet. And check out the Very Local Gulf Coast app to stream news, entertainment and original programming on your TV.