Federal Shutdown Halts New NFIP Flood Insurance Policies in Louisiana

The ongoing federal government shutdown is affecting the National Flood Insurance Program (NFIP) in Louisiana, halting the issuance of new flood insurance policies and delaying renewals of existing ones. While current policies remain active, new policies cannot be issued, and customer requests to increase coverage or renew pre-Oct 1 unpaid policies are stalled, potentially impacting homeowners' compliance with mortgage flood insurance requirements. Insurance professionals advise policyholders to promptly contact their agents, lenders, and realtors to ensure continuous coverage during the shutdown. Senator Bill Cassidy is seeking a legislative workaround to reauthorize NFIP independently of the broader federal budget negotiations, aiming to secure flood insurance provisions for affected residents promptly.