Summary
The National Flood Insurance Program (NFIP), which provides flood insurance crucial for homeowners in high-risk areas, is set to expire due to the potential government shutdown. Without new funding, people cannot get new or updated flood insurance policies, affecting real estate transactions and home loans in flood-prone regions. Congress needs to pass a spending bill to keep the program running and ensure the housing market isn't disrupted.
Key Facts
- The NFIP is the largest flood insurance provider in the U.S. and helps homeowners in flood-risk areas.
- A government shutdown would freeze the NFIP, preventing new policies and policy updates.
- Flood insurance, required for many home loans, is not part of typical homeowners insurance, so many rely on the NFIP.
- NFIP supports nearly 500,000 home sales yearly, affecting the housing market.
- Past lapses, like in June 2010, had significant impacts, canceling or delaying many home sales.
- The program is crucial in states like Florida and Texas, which depend heavily on flood insurance for home sales.
- Congress needs to find a long-term solution for the NFIP, which has had only short-term extensions since 2017.
- The NFIP faces challenges like outdated flood maps and balancing affordable premiums with financial stability.
