If there's one thing to keep in mind with flood insurance right now, it's pay your premiums.
Elise Catrion Gregg
Government shutdown pauses parts of NFIP
The federal government shutdown has entered its third week. One program affected is the National Flood Insurance Program.
Mississippi Insurance Commissioner Mike Chaney spoke with MPB about what folks in Mississippi should know, and he said priority one for people with an existing NFIP policy is to keep paying those premiums.
"The bottom line is, pay your premium, keep it current," he said. "Don't worry if you have flood loss: the NFIP will pay you from the funds they have now."
If you have a mortgage on a property from a government-backed lender, and you're in a flood zone, you're required to have flood insurance -- either with the NFIP or a private insurer.
Chaney estimates that in Mississippi, the NFIP writes about 50,000 policies right now. But with the shutdown, they're not writing new ones or renewing policies.
If you're behind on renewals, though, he said the program has given folks an 120-day window to get back on track.
"They will give us 90 days plus an additional 30 days to pay up if you're behind on your renewal," Chaney said.
For people looking to buy a new flood insurance policy, things are a little trickier. Sometimes the NFIP is cheaper than private insurers, making buying properties in those flood zones tricky.
Essentially, it leaves fewer options on the table for people who need flood insurance. During the shutdown, it may mean that people either have to wait or pay more money for insurance.
But, that's not always the case.
"If you're in Mississippi, you can usually find private flood that's cheaper than the NFIP if you live along the Gulf Coast area," said Chaney. "What we would tell folks is this: be alert, talk to your insurance agent."
While there may be cheaper or more robust options other than the NFIP, it leaves buyers with some uncomfortable choices: not having flood insurance, waiting for the program to resume, or going with a private policy.
Austin Perez, a senior policy analyst with the National Association of Realtors, said waiting out the shutdown may not be the best route.
"If you're closing on a home, you want the peace of mind that you're going to be covered if there's a flood," he told MPB. "One inch of floodwaters equates to about $25,000 worth of damage."
"I mean most people, I don't think have $500 in a bank account if they flood," he said. "How are they going to address those issues?"