ST. MARY PARISH — With the federal government shut down, questions continue to rise about what it means for homeowners who rely on FEMA’s National Flood Insurance Program (NFIP). The program, which provides the majority of flood coverage across the country, is currently unable to issue new policies or process renewals that haven’t already been printed — leaving some policyholders uncertain about their coverage status.
Carla Bergeron, a senior agent with Bruni Insurance in Patterson, said most existing policyholders remain protected for now. “If they have a policy already and they are active, everything is fine— everything is normal. If they have a policy already and it’s in the renewal period— if the renewal has already printed, as long as they pay their premium within that 30 day grace period, their policy will be active,” Bergeron said.
Bergeron explained that claims will continue to be paid for policies that were already effective before the shutdown, though the program’s ability to do so depends on the funds that remain available through FEMA. “I mean, it’s not like a zero just because they shut down. They’re just not funding it anymore till they reopen. Whatever funds are there, they would pay the claims,” she said.
While coverage continues for active policyholders, the shutdown still presents challenges. Agents are unable to make any changes to existing policies — including adjustments to coverage amounts or premium costs. However, Bergeron noted that homeowners who are selling their property can still transfer their current flood insurance policy to the new buyer, making that policy an asset during the sale.
“We can’t do anything with dollars— you know, premium change, coverage change, right now during the shut down. But the name can be transferred over to the new owner,” Bergeron said.
She added that homeowners with private flood insurance will have to wait until the shutdown ends — and their next renewal period begins — before switching over to the National Flood Insurance Program.“They have to wait until that policy is at a renewal period to change it to the NFIP program,” she said.
For those already covered through the NFIP, policies printed before the shutdown can remain active as long as premiums are paid within the required time frame.
“If your renewal did print before the shutdown, you can still have your flood policy active as long as you pay the premium within 30 days of the original due date,” Bergeron said.
Bergeron encourages policyholders to reach out directly to their insurance agent with any questions about their coverage while the shutdown continues.
