FLORIDA - Federal flood insurance policies aren't being issued due to the current government shutdown - negatively impacting thousands of home sales, according to the Miami Herald.
The Federal Emergency Management Agency (FEMA) said the issuing and renewing of federal flood insurance plans will be halted until the shutdown has ended and funding is reset for FEMA and other agencies.
Politicians on both sides of the aisle, including Senators Marco Rubio (R-Florida) and Maxine Waters (D-California), have taken issue.
“I strongly disagree with this guidance as it incorrectly interprets congressional intent demonstrated last week with Congress passing legislation to keep the program operating until June 2019,” Rubio said in a statement. The National Flood Insurance Program was recently extended by Congress and Trump. Rubio says federal flood insurance is crucial for residents of Florida.
In a statement to the Miami Herald, Shannon McGahan, senior VP of governing affairs for the National Association of Realtors said:
“Last week, Congress passed legislation to fully reauthorize the NFIP through May,” McGahan said in a statement Wednesday. “However, today’s surprise FEMA ruling jeopardizes tens of thousands of home sales across America, as NAR estimates up to 40,000 closings are disrupted each month that the NFIP cannot issue flood insurance policies.”
The Miami Herald says Florida’s Office of Insurance Regulation urged homeowners to seek out private flood insurance plans instead, which it said were generally offered at similar or cheaper prices than NFIP plans.
“As conversations surrounding the future of the federally administered National Flood Insurance Program [NFIP] continue, Commissioner Altmaier and Chief Financial Officer Jimmy Patronis have continued urging homeowners to purchase private flood coverage through the 29 insurers eligible to write private primary personal residential flood insurance in Florida,” the agency said in a statement.
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