Trump's Terms For private flood insurance companies, the government shutdown is good for business
Oct 16, 2025
The National Flood Insurance Program has halted new policies due to the government shutdown, impacting home sales. Florida buyers are facing delays and higher costs for private flood insurance. With the NFIP pause, the private flood insurance market is seeing a surge in demand. Companies like Neptune are using AI for property underwriting and advocating for a shift to private insurance options. However, concerns about consumer protections and accountability arise as the market expands, especially in states like Louisiana that rely on affordable federal coverage.
AI Snips
Chapters
Transcript
Episode notes
Buyer Pays More Because NFIP Closed
- Andy Kasten described a buyer who expected a $700 NFIP policy but had to buy a $1,200 private policy due to the shutdown.
- The delay forced a more expensive purchase right before closing on a home sale.
Private Market Is Growing Fast
- Private flood insurance has expanded rapidly since 2019 and now covers more residential and commercial policies.
- It can offer higher coverage limits than the federal NFIP's $250,000 cap.
AI Underwriting Prices Homes Individually
- Trevor Burgess of Neptune explained using AI to underwrite individual home flood risk and price policies accordingly.
- He contrasted that with the NFIP, which seldom denies coverage but may charge very high premiums.