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Tag: NFIP

  • Government shutdown threatens to freeze some Florida home sales, Realtors warn

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    Flooded waters cover the driveways to multiple homes as trash floats along NE 78th Street due to king tides in Miami, Florida, Monday, October 6, 2025.

    Flooded waters cover the driveways to multiple homes as trash floats along NE 78th Street due to king tides in Miami, Florida, Monday, October 6, 2025.


    SAM NAVARRO

    Special for the Miami Herald

    Two weeks into the government shutdown, Florida realtors — and home buyers and sellers — are starting to feel the impact.

    Without an open and functioning federal government, homes in flood zones that are required to get a flood insurance policy largely cannot, which can delay or freeze home sales. That’s because the federal government is the largest provider of flood insurance policies through the National Flood Insurance Program.

    In FEMA-designated flood zones, banks require flood insurance before they will extend a mortgage. But during the on-going government shutdown, the NFIP cannot write new policies or renew current ones. And neither side in Washington has indicated a compromise is soon coming.

    Tim Weisheyer, Florida Realtors president and broker-owner of Dream Builders Realty and dbrCommercial Real Estate Services, said he recently spoke with a Florida realtor whose buyer had to scramble to find cash to complete a home purchase after the bank denied their mortgage due to lack of flood insurance. A cash buy eliminates the flood insurance requirement.

    “Ultimately, they were not able to get flood insurance, not able to get loans underwritten. The agent had to negotiate multiple extensions and variables with both buyers and sellers,” he said. “It’s costing them a lot of money and a lot of energy and frustration.”

    In this case, the buyer was able to borrow enough money from family members to buy the home in cash — with plans to take out a mortgage when the government opens again.

    “That’s not the norm,” said Weisheyer. “Most people can’t call three, four, five family members and pull that together. For so many others it just means transactions get delayed.”

    The National Association of Realtors estimates that about 1,400 transactions per day nationwide could be impacted due to the government shutdown, but most of those impacts kick in after the 30-day mark. That’s when current owners can no longer transfer their flood insurance policy to a new buyer, a loophole that is easing some of the stress of the moment right now, he said.

    Florida does have a small and growing private flood insurance market that can — in some cases — be cheaper than the heavily subsidized government insurance program. But more often in Florida, the spots with a higher flood risk are only able to access federal policies.

    In the meantime, flooding is still happening across the county. Experts say current policyholders could see delays getting their claims addressed.

    “As we’re seeing from Alaska and California to the Eastern Seaboard, severe weather and flood risk don’t shut down just because the government does,” said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies in a statement. “Americans are at risk of losing their homes and possessions to flooding because of Congress’ failure to fulfill one of its most basic job responsibilities: fund the government.”

    NAMIC and other real estate organizations have urged Congress to reach a deal to re-open the government, or at least pass a bill that just extends the NFIP. Florida Congressman Jimmy Patronis filed a bill shortly before the shutdown that would extend the NFIP through 2026 with no changes; a bill that Florida Realtors said it fully supports.

    “We are still in hurricane season. We’ve been fortunate thus far, but it’s reckless to run the risk of NFIP not being an option and not being available for a storm,” Weisheyer said.

    Alex Harris is the lead climate change reporter for the Miami Herald’s climate team, which covers how South Florida communities are adapting to the warming world. Her beat also includes environmental issues and hurricanes. She attended the University of Florida.

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  • This Florida woman’s nearly $100K flood insurance claim was denied after Tropical Storm Debby due to a major loophole

    This Florida woman’s nearly $100K flood insurance claim was denied after Tropical Storm Debby due to a major loophole

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    This Florida woman’s nearly $100K flood insurance claim was denied after Tropical Storm Debby due to a major loophole

    When Tropical Storm Debby came through Pinellas County, Florida in early August, Danielle Jensen thought her home was protected with flood insurance from the National Flood Insurance Program (NFIP). After all, she did spend $8,600 on a policy administered directly by the Federal Emergency Management Agency (FEMA).

    But when insurance adjusters came through, they denied her claim outright, not due to any fault of her own. A “prior loss” report discovered that the previous owner filed a flood insurance claim, but did not complete the repairs with the claim payout. From the home’s condition to the serial numbers on the appliances, everything was the same from the previous insurance claim, leaving her family on the hook for close to $100,000 in damages.

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    “It’s worthless, unless we flood again after we’ve made all these repairs,” Jensen told Tampa Bay’s News Channel 8. “At which point we could use it because it’s all new materials.”

    A denial like this can happen to anyone living in one of the roughly 23,000 NFIP communities if homeowners aren’t aware of their property’s past.

    How the National Flood Insurance Program works

    The National Flood Insurance Program is offered to homeowners through more than 50 insurance companies and directly through FEMA with NFIP Direct. According to FEMA, anyone living in a “high-risk flood area” with a mortgage from a government-backed lender has to have flood insurance.

    The policy can cover both the home and the homeowner’s belongings. Building coverage includes things like the foundation and electrical and plumbing systems, while contents coverage can help homeowners recover personal items like clothes, electronics and furniture. Based on government data, more than $79 billion has been paid for nearly 1.9 million filed claims throughout the life of the program.

    Unfortunately, traditional homeowners and renter’s insurance will not cover flood damage, and if your home has received federal disaster assistance in the past, you are required to hold flood insurance for as long as you live at the property. That doesn’t guarantee that every situation will be covered — and in the case of Jensen, the actions of the past homeowner caused her flood claim to be denied.

    Under the current NFIP Claims Manual, a claim can be denied if there was a previous flood damage claim and no repairs were made with the policy’s payout.

    But as of October 1, 2024 sellers will be legally required to disclose any prior flood claims and payouts to homebuyers so they can avoid this trap.

    Read more: These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes. Here’s how

    What can I do to protect my home from denied flood insurance claims?

    The problem for NFIP-participating communities up until now is that federal law hasn’t required disclosure of a previous flood insurance claim, or the outcomes thereof. Any disclosure of claims information without the consent of the claimant or current homeowner has been seen as a violation of the Privacy Act — meaning the owner hasn’t had to provide information about prior claims during the home sales process.

    Until Florida’s House Bill 1049 goes into effect, it’s a good idea to get a clear yes or no regarding past claims from the seller on the disclosure form before purchasing a home in a high-risk flood zone. Any knowledge gaps or unsure responses may be a red flag. You can also work with your real estate agent to get as much information as you can before closing, including requesting a full prior loss report from the seller.

    Congressional representatives in the state Kathy Castor and Gus Bilirakis also told News Channel 8’s Better Call Behnken that they’re working on larger solutions to protect flood victims and urge those who have had their claims denied to reach out for support. They plan to increase provider competition to reduce flood insurance rates and mandate more transparency to prevent what happened to Jensen from happening again.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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