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

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

Greg Allen

October 16, 2025 / 2:00 am

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. Many people who live on Florida's coasts are in high-risk flood zones where mortgage lenders require flood coverage.

Days before closing on the sale of a ho