Amaravati, October 16, 2025:

The U.S. government shutdown has stalled new National Flood Insurance Program (NFIP) policies, leaving buyers in storm-ravaged states like Florida scrambling for coverage and inadvertently favouring private insurers with higher premiums and broader reach.

As federal approvals grind to a halt, experts say it creates opportunities for the private sector to fill gaps, though at a cost rates often doubles NFIP's $1,400 average annual fee, per the Insurance Information Institute. Hurricane Helene's devastation in the Southeast amplified the issue, with thousands unable to secure policies before closing dates.

Private providers, now holding 20% of the market, up from 5% in 2018, see this as a turning point, but critics warn of affordability barriers for low-income households.