FEMA to Resume NFIP Activity During Shutdown

Dec 31, 2018

The Federal Emergency Management Agency (FEMA) has reversed itself and will begin to write and renew policies related to the National Flood Insurance Program (NFIP) for as long as the partial shutdown of the federal government remains in place. Prior to the government shutdown, the NFIP was extended through May 31, 2019.

“This rescinds initial guidance issued on Dec. 26, 2018, to industry partners to suspend sales operations as a result of the current lapse in annual appropriations,” said FEMA in a statement issued late on Friday. “As of this evening, all NFIP insurers have been directed to resume normal operations immediately and advised that the program will be considered operational since December 21, 2018 without interruption.”

The National Association of Realtors (NAR), one of the first housing trade groups to challenge FEMA’s initial decision, welcomed this policy switch.

"FEMA and the Administration deserve credit for hearing our concerns and acting swiftly to address them," said NAR President John Smaby. "This new decision means thousands of home sale transactions in communities across the country can go forward without interruption, as Congress intended when it renewed the flood insurance program earlier this week. Our research has shown that 40,000 home sales are lost every month that flood insurance is not available."

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Phil Hall

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Dec 31, 2018

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