The National Flood Insurance Program Explained

The National Flood Insurance Program (NFIP) was created by Congress in 1968. It was created in response to the rising cost of taxpayer funded disaster relief for flood victims and the increasing amount of damage caused by floods. The Mitigation Division within the Federal Emergency Management Agency manages the NFIP, and oversees the floodplain management and mapping components of the Program.

To get secured financing to buy, build, or improve structures in Special Flood Hazard Areas (SFHA’s) you will be required to purchase flood insurance. Lending institutions that are federally regulated or federally insured must determine if the structure is located in a SFHA and must provide written notice requiring flood insurance.

Flood insurance is available to any property owner located in a community participating in the NFIP. All areas are susceptible to flooding, although to varying degrees, in fact, 25% of all flood claims occur in the low-to-moderate risk areas. Flooding can be caused by heavy rains, melting snow, by inadequate drainage systems, failed protective devices such as levees and dams, as well as by tropical storms and hurricanes.

There’s a big difference between having to buy flood insurance because the law says you must and choosing to buy flood coverage because it’s in your best interests to do so. We recommend that all property owners purchase and keep flood insurance because it is the best means of recovery from flood damaged.

Keep the peace of mind in knowing that your property will be protected from damages from the next storm and you’re not left to cover the losses yourself?