UPDATE:  Lawmakers on both sides of the aisle are pressuring FEMA to undo the decision to restrict NFIP flood insurance policies. politico.com-FEMA botched it Lawmakers push disaster agency to sell flood insurance during shutdown

On December 21 Congress passed and the President signed legislation to keep the National Flood Insurance Program (NFIP) functioning even through a government shutdown, reauthorizing the program to May 31, 2019.

According to an article in Insurance Journal “On Wednesday, Dec. 26, FEMA announced changes to the operations of the National Flood Insurance Program (NFIP) in response to the U.S. government partial shutdown. FEMA said NFIP insurance policies that were in force before midnight on Dec. 21, 2018 remain in force and claims under those policies will be paid. However, FEMA also said the NFIP will now have “limited ability” to issue new policies, issue increased coverage on existing policies, or issue renewal policies. FEMA did not define “limited ability” or indicate how long this change would be in effect.”

As long as new policies are not being issued that means that real estate closings involving a mortgage requiring flood insurance from the NFIP cannot occur. Policies written by private insurers are not affected by FEMA’s decision.

According to the article, insurance and banking groups are criticizing FEMA’s decision stating that it violates the intent of the law.

Read the full article here: Insurance banking groups balk at limits on flood insurance operations 12.27.18

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