With National Flood Insurance Program Set to Expire, Fewer Are Buying Flood Coverage

A year after Hurricane Helene ripped through the South with devastating wind, rain, and flooding, fewer people are buying flood insurance in four of the six states the storm affected.

Nationally, 11,911 fewer NFIP policies were in force in August 2025 vs. 2024 at the same time, according to FEMA data. And the number of non-participating communities, where NFIP coverage isn’t available at all, rose from 2,279 in 2024 to 2,290 as of August 2025.

But unless federal legislation — stalled in congressional committees since April — moves forward quickly, thousands more property owners across the country could find themselves unable to buy new NFIP policies or renew existing ones.

NFIP set to expire on Sept. 30

Since creating the NFIP in 1968, Congress has had to periodically vote to continue the program. It’s done so 31 times since the end of the 2017 fiscal year. The most recent extension was in March of this year, authorizing the program until 11:59 p.m. on Sept. 30, 2025.

Bills are pending in both the House and Senate to extend the program through Dec. 31, 2026. The House bill is currently with the Committee on Financial Services for review, where it’s remained since its introduction on April 10, 2025. The Senate’s version of the bill has been with that body’s Committee on Banking, Housing, and Urban Affairs since March 13, 2025.

If Congress doesn’t pass legislation to extend the program by the Sept. 30 deadline, the NFIP will have to stop selling new policies and renewing existing ones. And the amount the program can borrow from the U.S. Treasury will plummet from $30.425 billion down to $1 billion.

Since 2017, the program has only lapsed three times. The longest lapse was two days in 2018.

“Congress cannot allow” the NFIP to expire during the height of hurricane season, Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC), told Insurance Journal. “Everyone agrees the NFIP is in dire need of reform … but as the government runs up against a shutdown, Congress must first ensure that homeowners have the protection they need at such a pivotal time.”

NFIP policy numbers declined in past 12 months

Based on an analysis of FEMA data for policies in force over the 12-month period between August 2024 and August 2025, policy numbers dipped 0.3% nationwide. Policy numbers increased in just 14 states, and declined in all others.

Alaska saw the largest percentage increase — 33.2%. That increase represents about 802 new policies in the sparsely populated state. In August 2024, a glacial outburst caused substantial flooding in and around Juneau, according to the National Oceanic and Atmospheric Administration. It was the second consecutive year of glacial flooding in the area.

Among other states, Maine and New Mexico saw the second- and third-highest increases in policy numbers, at 9.4% and 6.1%, respectively, FEMA data shows. Severe windstorms and flooding hit eight counties in Maine in January 2024, according to the Maine Emergency Management Agency.

Among the states that suffered damage from Hurricane Helene, only North Carolina — arguably hardest-hit by the storm — and Florida have more people buying flood insurance through the NFIP this year. Policies in force increased 4.4% in Florida and 2.4% in North Carolina.

In all, the number of active NFIP policies fell in 37 states since August 2024, with Utah marking the largest drop — 7.9%. And in Texas, where July flooding caused widespread damage and claimed at least 130 lives, policy numbers fell by 7%.

State	Policies in Force Change	Percentage Change
Alabama	-1,272	-2.70%
Alaska	802	33.20%
Arizona	-759	-3.20%
Arkansas	-267	-2.30%
California	-8,000	-4.30%
Colorado	-867	-5.00%
Connecticut	-14	0.00%
Delaware	-245	-0.90%
Florida	75,991	4.40%
Georgia	-454	-0.60%
Hawaii	89	0.10%
Idaho	-95	-1.80%
Illinois	-745	-2.30%
Indiana	-402	-2.50%
Iowa	-306	-3.10%
Kansas	-229	-3.20%
Kentucky	527	3.00%
Louisiana	-21,907	-5.00%
Maine	740	9.40%
Maryland	-431	-0.70%
Massachusetts	786	1.40%
Michigan	-272	-1.40%
Minnesota	-148	-2.20%
Mississippi	-2,608	-4.90%
Missouri	-527	-3.40%
Montana	14	0.40%
Nebraska	-80	-1.10%
Nevada	-219	-2.30%
New Hampshire	-9	-0.10%
New Jersey	-4,082	-2.00%
New Mexico	783	6.10%
New York	109	0.10%
North Carolina	3,087	2.40%
North Dakota	-340	-5.40%
Ohio	-438	-1.90%
Oklahoma	-412	-4.50%
Oregon	-329	-1.40%
Pennsylvania	-926	-2.10%
Rhode Island	140	1.20%
South Carolina	-2,990	-1.50%
South Dakota	3	0.10%
Tennessee	-54	-0.20%
Texas	-45,781	-7.00%
Utah	-369	-7.90%
Vermont	221	5.90%
Virginia	-880	-0.90%
Washington	-189	-0.60%
Washington, D.C.	-57	-2.40%
West Virginia	-207	-2.20%
Wisconsin	-77	-0.70%
Wyoming	13	0.80%

Source: FEMA

NFIP coverage available in fewer communities

Property owners in non-participating communities can’t buy flood insurance through the NFIP and may struggle to find private insurers willing to sell them flood coverage.

In 2024, 2,279 communities across the country didn’t participate in the NFIP. As of August 2025, that number has risen to 2,290, FEMA data shows. Michigan remains the state with the highest number of non-participating communities, at 192. Missouri (167), Iowa (140), Texas (129), and North Dakota (120) round out the five states with the highest number of non-participant communities.

An analysis of FEMA data shows that high-risk coastal states tend to have the fewest non-participating communities, while interior and Midwest/Great Plains states have the most non-participating communities. But the perception that interior states have less flood risk — and therefore less need for NFIP participation — is misleading.

For example, in North Dakota, several Red River Valley counties are at a high risk of frequent river flooding. Texas is another outlier, with many high-risk areas and more than 120 non-participating communities.

State	2025 Non-Participating Communities	2024 Non-Participating Communities
Alabama	61	61
Alaska	3	3
Arizona	2	2
Arkansas	90	90
California	5	5
Colorado	19	20
Delaware	5	5
Florida	9	10
Georgia	69	69
Idaho	15	15
Illinois	112	110
Indiana	67	67
Iowa	153	162
Kansas	106	100
Kentucky	56	58
Louisiana	34	36
Maine	29	30
Massachusetts	12	9
Michigan	192	194
Minnesota	96	96
Mississippi	33	33
Missouri	190	190
Montana	8	9
Nebraska	92	93
Nevada	1	1
New Hampshire	12	12
New Jersey	5	5
New Mexico	14	14
New York	9	9
North Carolina	27	27
North Dakota	121	114
Ohio	100	101
Oklahoma	118	118
Oregon	5	3
Pennsylvania	34	34
South Carolina	28	28
South Dakota	57	46
Tennessee	9	8
Texas	134	135
Utah	25	25
Vermont	20	20
Virginia	18	19
Washington	17	16
West Virginia	5	5
Wisconsin	56	57
Wyoming	17	15

What’s next?

The future of the National Flood Insurance Program remains unclear. A potential federal government shutdown looms Oct. 1 and may overshadow the Sept. 30 deadline for reauthorizing the NFIP.

“Congress must act swiftly to prevent any lapse in the NFIP, particularly as we enter the height of hurricane season,” New York Assemblywoman Pamela Hunter, president of the National Conference of Insurance Legislators, told Insurance Journal. “A long-term reauthorization is overdue, but in the meantime, we cannot risk leaving families, businesses, and communities vulnerable.”

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