A federal flood insurance program covering nearly 500,000 Louisianans is on hold after Congress let it expire Tuesday night.
It’s part of the broader federal government shutdown after lawmakers failed to agree on a budget.
Louisiana has the highest repetitive flood losses in the country. Since the creation of the National Flood Insurance Program in 1968, as an insurer of last resort, more than $20 billion has been paid out to policyholders in the state.
Policyholders with expiring contracts will lose coverage without the opportunity to renew until the program resumes, and new policies can’t be issued until then, even in flood-prone areas where flood insurance is required to purchase a home, like much of Louisiana.
Republican U.S. Sen. Bill Cassidy has long advocated for the program to be made permanent, and told Senate colleagues last week that letting it lapse at the height of hurricane season would be irresponsible.
Real estate associations say the lapse in coverage will hamstring thousands of home sales.
