Flood insurance and rural home assistance programs on pauseAt the height of hurricane season in the US, the National Flood Insurance Program isn’t able to write new policies during the shutdown, said Daniel Schwarcz, a professor of insurance law at the University of Minnesota. The program, backed by the Federal Emergency Management Agency (FEMA), offers federally backed flood insurance to homeowners. Demola said most mortgage lenders won’t allow a home purchase in a high-risk flood zone to proceed until a homebuyer obtains flood insurance. But all-cash buyers – even those in high-risk flood areas – aren’t required to get flood insurance and can proceed with their home purchases, even during the shutdown. That means most Americans who take out loans backed by the two entities can proceed with their home purchase – as long as their property doesn’t require a flood insurance policy.