JACKSONVILLE, Fla. — The federal government shutdown comes smack dab in the middle of hurricane season, and that could prove to be a big problem for those looking to buy a new home or purchase flood insurance on their existing home.
Congressman Randy Fine (R-FL 6th District) spoke out in a news conference Friday, raising the alarm about the shutdown’s impact on Floridians’ ability to protect their homes should a storm hit.
He explained that, during a shutdown, the Federal Flood Insurance Program cannot write new policies.
“And then what happens if a storm shows up in the next couple weeks and your house gets destroyed? Those people are going without insurance even though they want to do the right thing and that program is run by FEMA,” said Fine.
>>> STREAM ACTION NEWS JAX LIVE <<<
That is likely to hurt Florida more than any other state, as nine of every ten flood policies in the state are through the Federal Flood Insurance Program.
But even those with existing policies aren’t immune to the shutdown troubles.
Policyholders who come up for renewals during the shutdown may have issues renewing their policies.
But Mark Friedlander with the Insurance Information Institute explained there is a 30-day grace period being offered.
“So, renewals at least for the short term are covered. Longer term, that’s gonna be up to Congress,” said Friedlander.
According to Friedlander, the biggest issue could rear its head for people in the middle of purchasing a home.
“If you have a property in what’s called a special flood hazard area, high-risk flood zone, you are required to have flood insurance if you have a mortgage loan. So, that’s an immediate impact,” said Friedlander.
[DOWNLOAD: Free Action News Jax app for alerts as news breaks]
But Friedlander noted there are options in the private market, though those policies can be more expensive.
“The good news is Florida has a robust private flood insurance market. Many options. Call your insurance agent, they’ll get you a few quotes,” said Friedlander.
As for when the shutdown will end, Fine didn’t have any updates in terms of a deal being struck.
The continuing resolution passed by the US House of Representatives last month would keep the government open through November 21st."
[SIGN UP: Action News Jax Daily Headlines Newsletter]
