Government shutdown effects on flood insurance and the real estate market

While December 21, 2018 was the deadline for official decisions in order to prevent a government shutdown, agreements were not made. Now as we narrow in on the beginning of 2019, whether or not we’d like to start a new year in this way, there are many things still up in the air. One thing has been resolved though, after just a few days of major backlash.

FEMA, which oversees the National Flood Insurance Program, initially announced that there could be no business conducted regarding flood insurance until the shutdown was resolved. That included issuing of new business, renewals/reinstatements, or coverage changes on existing policies. Nothing. It was estimated that had this suspension continued, up to 40,000 real estate transactions (mainly the sale of homes in flood zones mandatory to carry special coverage) per month would be delayed. This would significantly affect homeowners, realtors, mortgage lenders, inspectors, and many other affiliates’ livelihood.

It was decided that this could drastically affect too many people in irreversible ways. Therefore as of December 28, just one week later, FEMA has reversed that decision and is now allowing all flood insurance business to continue for the time being.

Please contact info@mcgriffwilliams.com or (352)371-7977 with any questions regarding flood insurance in Florida.

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