Citizens Insurance Pauses Flood Coverage Proof During NFIP Shutdown

Florida’s state-run Citizens Property Insurance Corporation has announced a temporary deferral of its flood insurance documentation requirement due to the federal government shutdown, which has suspended operations of the National Flood Insurance Program (NFIP) as of October 1, 2025. This administrative pause allows policyholders to apply for Citizens coverage without immediately submitting proof of flood insurance, a requirement typically enforced under Florida law.

For insurance claims adjusters, this deferral presents important operational implications. Adjusters working with Citizens policies must recognize that properties which typically require flood coverage—such as those with replacement costs of $500,000 or more—can currently remain insured even if flood documentation is pending. However, once NFIP resumes, agents have only 10 business days to file all required flood documents or risk cancellation.

The deferred requirement applies only during the federal shutdown, and Citizens will not accept late submissions once NFIP operations resume. Properties already facing cancellation or nonrenewal due to flood coverage gaps can be reinstated if agents submit the proper deferral forms before the effective dates. Adjusters will need to monitor these timelines closely to mitigate potential lapses in coverage and avoid disputes over non-compliance.

This development underscores the continued integration of flood risk management into standard property insurance in Florida—a trend adjusters must follow closely. The evolving legal requirements, tied to FEMA’s hazard zones and property valuations, are shaping both underwriting practices and claims procedures. Private flood insurance remains an option during the NFIP suspension, but adjusters should expect documentation demands to intensify post-shutdown.