Streetsmart insurance Blog
Throughout the partial government shutdown, the Federal Emergency Management Agency stated this Thursday that it would not cover the National Flood Insurance Program / NFTP. The agency also cited that as long as the shutdown goes, plans will not be offered and renewed. Meanwhile, current policies will stay in effect until they expire.
December 21 is the said deadline to settle the temporary funding bill which includes the extension for the insurance package that was held up in the Senate until last week. As opposed by FEMA, Congress tried to provide a solution to the condition by permitting a bill that was approved by President Donald Trump to lengthen flood insurance coverage up to 31st of May 2019.
FEMA’s Move About Insurance
Insurance Journal: “FEMA had been noting the Anti-Deficiencies Act that inhibits insurance firms from engaging contractual responsibilities or making expenses to those that are not fully subsidized. The housing industry had been anxious about the disruption of real estate closings and sales due to the decision of FEMA. National Association of Realtors’ Shannon McGahn, senior vice president of government affairs, cited to Housing Wire that the sudden and impractical decision has brought complete dissatisfaction to NAR and its 1.3 million members.
American Bankers Association president and CEO Rob Nichols emphasized that complication and postponement of loan closings for borrowers who are expected to carry flood insurance will arise. He also added that those who need NFIP program would have a hard time when government shutdown goes on. Even though the legislation was permitted and allowed into law last week to extend the NFIP’s permit for six months, the abrupt decision entirely contradicts what the Congress and the president have agreed already. Rob anticipates that FEMA reconsiders their immediate action.
Aftermath of FEMA’s Decision
While the partial government shutdown has started, Congress missed discussing the short funding answer for nine federal agencies, particularly the Department of the Interior. Eight hundred thousand federal workers and more were forced for leave of absence. Some are asked to work without compensation during holidays. In National Weather Service, 3,600 forecasters have also been affected. Notable employees who were impacted are comprised of 42,000 members of the U.S Coast Guard, 5,000 U.S. Forest Service firefighters, and numerous law enforcement officials.
One More Thing Before You Go
As an employee, it’s essential to protect your life, and it’s proper to consult your insurance agency to assure your weather insurance policy for your future.
At StreetSmart Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (732) 462-8343 or Click Here to request a free quote.