Government shutdown would affect flood insurance for many Central Floridians

ORLANDO, Fla. — A federal government shutdown this weekend would prevent the National Flood Insurance Program from selling or renewing policies until the program is reauthorized.


The program plays a key role for many homeowners in Florida because they are required to have flood insurance as part of their mortgages. A government shutdown will happen unless the U.S. House and Senate can reach agreement on at least a short-term spending plan before Sunday.

The National Association of Realtors said this month that it is “urging the longest extension possible (of the flood insurance program) while Congress continues working toward a long-term reauthorization and reform measure.”

President Joe Biden signed legislation Dec. 29 that authorized the program through Sept. 30, according to the National Flood Insurance Program website.

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“During a lapse in statutory authority, the NFIP (the program) cannot sell or renew flood insurance policies or borrow from the U.S. Treasury to pay claims for existing policies,” the program website said.

“The NFIP can still process and pay claims on flood insurance policies as long as funds are available. FEMA (the Federal Emergency Management Agency) and Congress have never failed to honor the NFIP’s contracts with policyholders.”

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