US shutdown caused chaos in real estate market in flood zones - NYT
Kyiv • UNN
Due to the US government shutdown, the National Flood Insurance Program has suspended the issuance of new policies, delaying approximately 1,400 real estate transactions daily. Private insurance is significantly more expensive and unavailable in many areas.
Due to the US government shutdown, chaos has erupted in the process of selling real estate in flood zones caused by recent floods. This is reported by UNN with reference to The New York Times.
Details
In Clearwater, Florida, Bridget Neumann, an insurance broker, spent the last week trying to replace a policy that currently doesn't exist. Due to the federal government shutdown, the National Flood Insurance Program has suspended the issuance of new policies, which are necessary for many home buyers to secure mortgages.
This means that the annual $4,000 flood insurance policy that her client hoped to pay for a modest two-bedroom ranch is no longer valid. The only two offers she found from private insurance companies cost $9,000 and $12,000.
The National Association of Realtors estimates that this pause could delay or disrupt about 1,400 transactions per day until Congress reinstates the program. Private flood insurance is typically much more expensive and not offered in many areas.
Recall
The United States government officially announced a shutdown on October 1 after Congress and the White House failed to reach an agreement on funding. This happened for the first time since 2019, leaving about 750,000 federal employees without pay.