National Flood Insurance Program Lapses as Government Shuts Down

The government’s ability to provide new flood insurance contracts for Americans expired with two months left in the Atlantic hurricane season.

The debt-ridden National Flood Insurance Program’s authority to borrow funds from Treasury to operate while the government is shut down will be reduced to $1 billion from $30.4 billion because of the lapse, according to a Sept. 25 analysis from the Congressional Research Service.

The NFIP is the main provider of flood insurance for residential properties in the US. It’s responsible for approximately 5 million policies in more than 22,000 participating communities across the country, the CRS said. Property owners in ...