Shutdown Cuts Off Flood Insurance Program During Storm Season

A lapse in the National Flood Insurance Program because of the US government shutdown threatens to snarl home sales in the nation’s riskiest floodplains and leave some homeowners without coverage in the middle of hurricane season.

Without reauthorization, the program – which counts more than 4.7 million policies providing more than $1.3 trillion in coverage – cannot issue new policies or renew expiring ones. In areas that require flood insurance to close a loan, that’s a problem.

As the government shutdown continues for a second week, with no sign of breakthrough on the horizon, the coverage gap is poised to ...