Flood Insurance / Gov’t Shutdown


FEMA today (Dec 27, 2018) notified insurers that they would not be able to sell or renew flood insurance policies under the National Flood Insurance Program (NFIP) during the partial government shutdown. Insurers could still pay claims on existing policies that are not up for renewal during the shutdown.

As a result of this announcement, you could have several difficulties if your home requires flood insurance.

  1. Any home closings scheduled during the Government shutdown could be deferred or cancelled, if your mortgage company requires flood insurance
  2. If you currently own a home that requires flood insurance and your policy is supposed to renew during the shutdown, your insurance company may not renew your policy and your home could be without flood insurance
  3. If you have an escrow account the pays for flood insurance, your bank could exclude your 2019 flood insurance premium from the escrow, without your knowledge.
  4. If you incur a flood event during the shutdown and your policy is up for renewal, you home could potentially not be covered

If you or anyone you know is in the process of buying a home that needs flood insurance, please contact your insurance agent AND bank to ensure that you will be able to close on your home and get the necessary insurance for your home. If you currently own a home that requires flood insurance contact your insurance company immediately to see if you are affected by the FEMA announcement.

James Smith

James Smith

Realtor / Broker at Executive Sellers Realty
Mr. Smith is an award winning Realtor in Charlotte, NC, winning the 2017, 2016 and 2015 5-Star award from Charlotte Magazine.Mr. Smith may be reached at james@executivesellers.com or 704-491-2870
James Smith
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