What is one consequence of a community being suspended from the NFIP?

When a community is suspended from the National Flood Insurance Program (NFIP), one significant consequence is that existing flood insurance policies will not be renewed. This means that residents and businesses within that community will not have access to the federally-backed flood insurance that is typically available through the NFIP. As a result, property owners will be unable to maintain their flood insurance coverage when their existing policies expire, leaving them vulnerable to flood risks without adequate financial protection.

This situation typically arises because the community has failed to meet the minimum floodplain management requirements set by the NFIP. The lack of renewal also prompts property owners to seek alternatives, which might be limited and potentially more expensive, leading to a higher risk for the community overall. The suspension can create not only financial implications for the residents but also may impact the community's ability to recover from flood events in the future.