Flood insurance

A lapse in the National Flood Insurance Program because of the US government shutdown threatens to snarl home sales in the nation's riskiest floodplains and leave some homeowners without coverage in the middle of hurricane season.

The first government shutdown since 2019 will slow flood insurance originations and new Small Business Administration loans, though self-funded banking regulators will continue operating as usual.

Consumers are so concerned about rising costs that they often forego coverage altogether, according to two separate studies from Valuepenguin and Realtor.com.

Mortgage lenders could face NFIP lapses and a government shutdown, but can take specific steps now to safeguard borrowers.

Numbers on use and performance point to potential for nonpublic insurers to take on a greater role but also suggest there are limits to it, Fitch Ratings found.

The National Flood Insurance Program, estimated to cover over 4 million homeowners, is set to lapse next Friday along with the federal budget.

Southeast homeowners affected by the storms last fall submitted a combined over 78,500 flood insurance claims to the National Flood Insurance Program.

The FEMA-operated program has over 4.7 million policies in force, and lawmakers have kept it intact via dozens of short-term extensions since 2017.

Financial profiles of borrowers in the coastal areas where insurance coverage is required vary significantly from at-risk homeowners inland, CFPB's analysis found.

Homeowners in areas affected by Hurricane Sandy have already seen growth in their property values lag behind the national median.