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Federal Shutdown Freezes Flood Insurance Program, Stalling Some Coastal Home Sales

Private insurers offer stopgap coverage that varies sharply by market.

Overview

  • The NFIP is frozen during the shutdown after expiring Sept. 30, leaving only existing policies in force and claims payable as FEMA funds allow.
  • Renewals already printed can stay active if premiums are paid within 30 days, but new policies, unprinted renewals and policy changes are paused, and existing policies can be assigned to buyers at closing.
  • Lender requirements for flood coverage are delaying or blocking closings in high‑risk zones, leaving some would‑be buyers in limbo.
  • Private insurers are filling some gaps, with Florida agents citing active markets and competitive terms, while coastal Maine brokers report costlier, more selective options that can complicate a later return to NFIP.
  • Florida Rep. Jimmy Patronis says he backs a measure to temporarily extend the program through mid‑November.