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The National Association of Realtors (NAR) has warned that a prolonged shutdown of the federal government will imperil the National Flood Insurance Program (NFIP).

NAR noted that the shutdown has resulted in the halting of NFIP’s authority to issue new policies, which will complicate an estimated 1,400 property transactions per day while leaving many homebuyers in high-risk areas without the ability to purchase flood insurance coverage.

The organization added that NFIP claims will continue to be paid during the shutdown while most existing policies will remain active and can be transferred to new owners. However, it is unclear how long it could take before FEMA’s claims paying funds are depleted if the shutdown stretches on for a prolonged period.

“According to NAR research, the NFIP supports roughly half a million home sales annually, generating 1 million jobs and contributing $70 billion to the US economy,” said Shannon McGahn, NAR executive vice president and chief advocacy officer. “Each day that passes during the shutdown, potential real-life impacts will be felt in America’s housing market, which accounts for nearly 20% of the US economy. That is why NAR urges Congress to reach a funding agreement to reopen the government, while we also continue to advocate for a stable, long-term reauthorization of the NFIP so that families, businesses, and markets can move forward with more certainty.”