For private flood insurance companies, the government shutdown is good for business

"MIAMI Among those feeling the pain of the government shutdown are people in coastal areas and other locations where they need flood insurance. The government-backed National Flood Insurance Program stopped writing new policies on Oct. 1 and can't resume until it's reauthorized by Congress. That may force buyers to postpone or cancel home sales. Andy Kasten, an insurance broker in Fort Lauderdale, says the shutdown is already having an impact in Florida the nation's biggest flood insurance market."

"Days before closing on the sale of a home this month, Kasten says one of his customers discovered he would need flood insurance. Unfortunately, because of the shutdown, the $700 annual flood policy he expected to purchase from the government program was no longer available. "We just had to write a private flood policy, and it ended up costing him 12 hundred and change.""

The National Flood Insurance Program stopped issuing new policies on Oct. 1 and cannot resume until reauthorization by Congress. Mortgage lenders require flood coverage for properties in many high-risk zones, particularly in Florida, and the program's suspension can delay or derail home closings. Some buyers are forced to buy private flood insurance at higher rates because government policies are unavailable. The private flood market has expanded rapidly, offering higher coverage limits and attracting increased interest during the shutdown, though pricing varies between high-risk and lower-risk flood areas.

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