The ongoing federal government shutdown has entered its eighth day with lawmakers still far from a resolution. This has raised concerns in various sectors, including the real estate market in Southwest Florida.
WINK Investigates reporter Olivia Jean spoke with several key figures in the local real estate industry to understand the potential impacts of the shutdown. Among those interviewed were a homeowner, a realtor, and an insurance brokerage owner.
Right now, many real estate transactions are on hold due to the suspension of the National Flood Insurance Program (NFIP), a crucial federal program for many in Southwest Florida.
"All of Florida is a flood zone," said Eric Seuffert, owner of Brightway Insurance.
Eric Seuffert explained that living in Southwest Florida often necessitates flood insurance because of hurricanes and proximity to water.
The NFIP is the primary flood insurance provider in the region.
"They're shut down, and there's no way around it until, till the government comes back," said Eric Seuffert.
While private flood insurance is an option, it does not provide comprehensive coverage and is often more expensive.
Both Eric and Char Seuffert, broker-owner with Remax Sunshine, have seen direct impacts of the shutdown in Southwest Florida.
"We're not able to buy in flood insurance, and we're not able to transfer flood insurance, so if we have any closings, we're kind of having to think about how we're going to deal with that," said Char Seuffert. "Will we need extensions? How will that affect our clients? What if their rates are locked in and then it expires? So pretty frustrating, especially as we started to see a really nice increase in buyers in our market, which we haven't seen in three years."
Char Seuffert mentioned that some clients have had to consider extensions, which could affect their locked-in interest rates, further complicating the buying process.
"When the government shut down on October 1, basically NFIP shut down," Char Seuffert explained. "I'm feeling really frustrated. I mean, I just think that this is unnecessary."
The shutdown prevents the inability to secure new flood insurance policies or renewals. This situation prevents buyers from closing on homes if they rely on NFIP coverage.
"We wouldn't be able to close on a lot of the properties because they wouldn't be insurable," said Char Seuffert.
The Seufferts emphasized the importance of resolving the shutdown quickly to minimize the impact on businesses and individuals needing flood insurance in Florida.
One of Char Seuffert's clients, Cindy Becker, who is selling her home, expressed her concerns but remained hopeful.
"I just pray, you know, pray that it'll work out," said Becker.
Becker plans to transfer her flood insurance policy to the new owners. However, her insurance agent warned her about potential delays in obtaining proof of the transfer due to the shutdown.
"He said, but because of the shutdown, he might not be able to, might not be able to get proof that it was transferred right away," said Becker.
Existing NFIP policies will remain valid until they expire and those seeking private flood insurance are not affected.
WINK News continues to monitor the government shutdown and its effects on the local community.