Coastal Maine homebuyers in limbo as flood insurance lapses during shutdown

The government shutdown that began last week could be preventing would-be buyers of coastal property from closing on their new home.

That’s because the National Flood Insurance Program, which is managed by the Federal Emergency Management Agency, expired on Sept. 30 when Congress failed to approve funding for government operations.

The federal program now can’t issue new flood insurance policies or make changes to existing ones until the government shutdown is over, according to the National Association of Realtors. Existing National Flood Insurance Program policies, however, will remain in effect until their expiration date and claims will continue to be paid as long as FEMA has funds.

This is perhaps most problematic for buyers attempting to close on a property in a high-risk flood zo