National flood insurance to lapse May 31st, for the fourth time in less than a year

Insurance & Financial Advisor is reporting today that the National Flood Insurance Program (NFIP) will lapse after midnight May 31st. From the article:

This would be the fourth time in the last six months the program has been allowed to lapse, with Congress reauthorizing the program retroactively.

The federal program protects more than 5 million property owners nationwide.

Claims Journal has more on the attempted dealmaking to head off this latest lapse, as well as what it means (and doesn't) for property owners. The short form: If you don't have it -- this is particularly relevant to folks trying to get financing to buy a home in a mandatory-flood-coverage area -- you won't be able to get the coverage until the program is renewed. But if you have the coverage, the insurance is still in effect. From Claims Journal:

NFIP has previously issued a memo with guidelines for operations during a hiatus. During its suspension, agents will not be able to issue any new or renewal flood insurance policies or increase limits on any existing policies. The hiatus will not affect claims paying.