CHARLESTON, S.C. (WCSC) – The government shutdown has caused an expiration for the largest flood insurance carrier in the country.
The National Flood Insurance Program serves tens of thousands of South Carolinians, and the Lowcountry is no stranger when it comes to heavy rainfall and flooding.
With uncertainty in how long this government shutdown could last and being in the peak of hurricane season, it could create fear among people who are looking to renew their current policy or want to buy a new one.
The NFIP’s authority to issue flood insurance expired at midnight on Sept. 30, meaning if you have this program and have to renew the policy or want to buy a new policy during this shutdown, you won’t be able to do so.
“An inch of water can cause tens of thousands, hundreds of thousands of dollars to property, so to remedy that, flood insurance is really a must have for folks,” Justin Farnsworth, an insurance agent with The Farnsworth Family Agency, said.
Because several people depend on the NFIP for protection when destruction comes, some local experts are urging people to plan ahead.
“It is not called the Lowcountry for no reason. Everything here is obviously very low and susceptible, very prone to flooding. Even folks that may think they’re on higher ground,” Farnsworth said.
Contrary to recent years, realtors in the area are seeing an uptick in the housing market this season.
Because most homeowners’ insurance does not include flood insurance, if a house is expected to close, there could be a slight delay in that process with this expiration.
“We think the most subjective impact could be some minor delays and appraisal deliveries and getting the appraisals done and moving towards closing,” President of the Charleston Trident Association of Realtors John Grisillo said.
He said, fortunately, on the realtor side, they don’t believe this will impact a large part of the Lowcountry because they see most consumers use privately owned companies.
“But if you are one of those homeowners who’s looking to close and you really are counting on that FEMA flood policy, that’s disruptive to you,” Grisillo said.
Both Farnsworth and Grisillo said to act quickly and control what you can by ensuring you have the right protection if destruction comes.
Government shutdown impacts largest flood insurance program
