EDIT: December 28, 2019 – 8:45 PM

Only hours after posting the article below FEMA has reversed their decision and is now allowing the flood program to continue during the shutdown.  We still offer private flood insurance solutions which can save our clients thousands of dollars in the right situation.  Please contact us for more info.

CLICK HERE for an Insurance Journal article with more info.

The Federal Flood Insurance Program was extended through May 31, 2019. However, FEMA will not allow new flood insurance policies during the Federal government shutdown.  Changes to existing policies and renewal policies cannot be issued, either.  However, claims processing will continue to operate.

This situation may cause closing problems for home buyers throughout NJ. This is especially in area around out offices (Monmouth, Ocean and Middlesex County).   In the meantime, we do have private market flood insurance options for situations where it will make sense.

You may download FEMA’s Guidelines on the Effects of a Lapse of Appropriation for the NFIP for more details.

FEMA’s says that during the shutdown the sale of flood policies may only continue if necessary for the protection of property.  They site  a federal statue referred to as the ‘Anti-Deficiency Act’.  They argue that short-term impact on the real estate market does not warrant an exception. However, it’s likely that the flood program may start issuing flood policies again if the shutdown continues for an extended period.