What happens to existing flood insurance policies if a community withdraws or is suspended from the NFIP?

When a community withdraws or is suspended from the National Flood Insurance Program (NFIP), existing flood insurance policies are affected in a significant way. The correct outcome is that these policies will not be renewed.

This means that while the policies may remain active until their current renewal dates, they cannot be renewed once the community is no longer participating in the NFIP. This policy change reflects the NFIP's structure, which requires communities to adhere to certain floodplain management standards to maintain access to federally-backed flood insurance. Therefore, upon withdrawal or suspension, the community and its residents cannot continue to rely on NFIP-provided coverage for future incidents.

It is important to note that the existing policies do not automatically convert to other forms of insurance, nor do they come with upgrades in coverage. The outcomes focus predominantly on the community's withdrawal status and the implications for policy renewal.