FEMA Reverses Decision to Limit Flood Insurance Sales

The federal government said this past Friday that it will continue to sell flood insurance despite the partial government shutdown.

Source: Penn Live | Published on December 31, 2018

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The announcement by the Federal Emergency Management Agency (FEMA) is a reversal of the agency’s Thursday announcement that it would limit sales.

The agency’s announcement spurred concern among property owners and realtors who feared a major disruption to housing sales. Homebuyers seeking federally-backed mortgages are required to buy flood insurance if their prospective home is in a floodplain.

Pennsylvania Insurance Commissioner Jessica Altman said Saturday that she welcomed the reversal of FEMA’s decision.

“I’m pleased that the federal government has recognized the importance of ensuring that property owners who live in flood-prone areas need the ability to purchase flood insurance through the [National Flood Insurance Program]” Altman said in a statement.

“An interruption in sales would have been extremely risky for property owners," she added.

The partial government shutdown began on Dec. 20 and is the result of a dispute between Democrats and President Donald Trump. Democrats have refused to meet the Trump’s demand for $5 billion to start erecting a border wall with Mexico.