The National Flood Insurance Program expired, and the government is currently in the middle of a shutdown of uncertain length. Louisiana Insurance Commissioner Tim Temple says this gap (that still falls within a hurricane season that is not yet over) could cause tremendous headaches for some homeowners.
“What it means is that the NFIP will not be issuing any new policies effective October 1st. So, if you have a policy that renews as of tomorrow or next week … as long as this shutdown is in effect, they will not be issuing renewals and will not be writing new policies. That’s bad for a lot of people,” Temple emphasized.
“When they shut down, the NFIP cannot issue or renew policies … they also can’t borrow any money should they run out of the funds they have on-hand handling claims,” Temple went on to explain. “That’s a very bad situation given the fact that we’re still in hurricane season,” he added. While it’s been a quiet hurricane season up to this point, the Gulf coast is not completely out of danger yet, and that could lead unlucky homeowners who encounter damage caught in the middle of a government skirmish.
While both sides of the political aisle have blamed each other for the government shutdown, Louisiana’s Insurance Commissioner was open about his frustration with the process at such a crucial time for those in the region.
“Instead of addressing the real issue, they’re kicking the can down the road. This is an issue that impacts the entire country that we all need to come together on,” Temple emphatically pointed out.
“That’s my frustration. This isn’t something new. We’ve been dealing with this for a long time. We need to get this right,” he added.