By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: Maui flood insurance through the National Flood Insurance Program (NFIP) is authorized only through Friday, December 11, 2026, under H.R. 6500, signed September 2. If Congress doesn’t extend it again, the NFIP can’t issue new or renewal policies, which can complicate closings on Maui homes and condos in high-risk flood zones.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and flood coverage is one of the items I flag early for anyone buying near the coast or a stream. Most homeowners policies don’t cover flood damage, and with a federal deadline approaching, the timing of your insurance and your closing now has to fit together.

Flood risk was on many Maui residents’ minds this summer. Hurricane Lala brought heavy rain and flash flooding to Hawaiʻi in mid-August, and on Maui, East Maui, Upcountry and Haʻikū saw the worst impacts. In Kīhei, water surged through a storm channel and left mud across part of South Kīhei Road.

Why does the December 11 NFIP deadline matter for Maui buyers?

Because if the NFIP lapses, buyers who need new flood coverage for a mortgage may not be able to get it. The NFIP is the federal program that writes most residential flood insurance in the United States, and its legal authority has to be renewed by Congress. Lately that has happened through short-term extensions tied to federal spending bills.

The current extension is part of the Continuing Appropriations and Extensions Act, 2027 (H.R. 6500), the continuing resolution that funds the federal government through December 11, 2026. The National Association of REALTORS® expects Congress to attach another extension to the next spending bill, but that is an expectation, not a certainty.

Who needs flood insurance on Maui?

Federal law requires flood insurance as a condition of a federally backed mortgage on a building in a high-risk flood area, according to the County of Maui. These areas are called Special Flood Hazard Areas. On Maui, they include many low-lying coastal areas and land along streams and drainage channels.

Even outside those zones, flood coverage can make sense. The County points out that standard homeowners policies exclude flood, and that just one inch of water can cause about $25,000 in damage.

To check a property’s flood zone, start with the State of Hawaiʻi’s Flood Hazard Assessment Tool or ask the County’s floodplain staff. A lender will also order a flood zone determination during the loan process.

What happens to Maui flood insurance if the NFIP lapses?

New and renewal policies stop, but existing policies stay in force. Based on guidance from the National Association of REALTORS® and FEMA:

• No new or renewal policies. The NFIP cannot write new policies or renew existing ones until Congress reauthorizes the program.
• Existing policies stay in force. Policies already in place remain active through their expiration dates, and claims are still paid.
• Seller policies can transfer. A seller’s existing NFIP policy can be transferred to the buyer by updating the names, which keeps coverage in place without issuing a new policy.
• Lenders decide. Most federal lending regulators suspend the flood insurance purchase requirement during a lapse, which leaves each lender to decide whether to close loans in flood zones.

In practice, a lapse can delay closings, especially when the seller doesn’t have a transferable policy.

How does flood insurance work for Maui condos?

Condo associations can buy a master NFIP flood policy called the Residential Condominium Building Association Policy (RCBAP), which, according to FEMA, can pay up to $250,000 in building losses for any one unit. FEMA also encourages unit owners to buy their own contents or building coverage, since the master policy doesn’t protect personal belongings.

If you’re buying a condo, ask for:

• The association’s flood insurance declarations page, including the deductible
• The building’s flood zone
• Whether recent storms led to claims or special assessments

Keep in mind that a new NFIP policy can have a 30-day waiting period before it takes effect, so don’t wait until the week of closing.

Does Maui County get a flood insurance discount?

Yes. Maui County participates in FEMA’s Community Rating System, which rewards communities that go beyond minimum floodplain management standards. The County says this gives residents a 15% discount on NFIP premiums in special flood hazard areas, worth about $1 million a year in combined savings.

A Maui flood insurance checklist for buyers

1. Check the flood zone before you make an offer.
2. Ask the seller whether they have an NFIP policy that can be transferred.
3. Get a flood insurance quote along with your homeowners or HO-6 quote.
4. For condos, review the association’s master flood policy and deductible.
5. If your closing falls near December 11, talk with your lender about timing.

My Take: What I’m Telling Buyers Near the Water

If you are under contract or shopping near the coast or a stream, I suggest getting flood quotes now rather than after inspections. With a possible 30-day waiting period on a new policy and an NFIP authorization that runs only to December 11, 2026, a late start leaves very little room.

On any property in a Special Flood Hazard Area, one of my first questions to the listing side is whether the seller has an NFIP policy that can transfer. If the program lapses, that transfer can be the difference between closing on time and waiting on Congress. For condos, I read the association’s flood declarations page and ask about storm-related claims and special assessments before a buyer is too far along.

Flood is only one part of the insurance picture. My post on the hidden cost of Maui home insurance in 2026 covers homeowners and HO-6 coverage, and condo buyers should also read about the condo financing rule that just changed.

This is general information, not insurance or legal advice. Please confirm your situation with a licensed insurance agent or Hawaiʻi attorney.

Frequently Asked Questions

When does the National Flood Insurance Program expire?

The NFIP is authorized through December 11, 2026, under the Continuing Appropriations and Extensions Act, 2027 (H.R. 6500), signed September 2, 2026.

Is flood insurance required on Maui?

It is required for federally backed mortgages on buildings in Special Flood Hazard Areas. Outside those areas, it’s optional but often worth considering.

Will my existing flood policy be cancelled if the NFIP lapses?

No. Existing policies remain in force until they expire, and claims are still paid. Renewals and new policies are what stop.

How much is the Maui flood insurance discount?

Maui County’s participation in the Community Rating System gives eligible policyholders a 15% premium discount.

Ask Benjamin

If you’re looking at a Maui home or condo near the water, I’m happy to help you pull flood zone information and connect with local insurance professionals early in the process. I’m Benjamin Finnerty, and you can call or text me at 808-481-9748 or email benjamin@the808team.com with any questions.

Sources: The White House (H.R. 6500 signing, Sept. 2026); National Association of Home Builders; National Association of REALTORS® NFIP FAQ; FEMA NFIP condominium guidance; County of Maui flood insurance information; Honolulu Civil Beat and Hawaiʻi DBEDT on Hurricane Lala (Aug. 2026).