How Does National Flood Insurance Program work?
The NFIP is designed so that floodplain management and flood insurance complement and reinforce each other. The partnership is established on the provision that FEMA will make flood insurance available, provided that a community implements adequate floodplain management regulations that mitigate flood risk. Most homeowners insurance does not cover flood damage to the structure or to contents and it is necessary for the homeowner to have a separate flood insurance policy. And insurance companies can only provide flood insurance policies to homeowners residing in communities participating in the NFIP. Effective implementation of local floodplain management regulations helps keep flood insurance rates affordable. The NFIP Community Rating System (CRS) is another example of this partnership. The CRS is an incentive-based program where communities exceeding the minimum NFIP requirements for participation can secure up to 45 percent premium reductions for the policyholders in that community.
Related Questions
- Can my community do anything to lower flood insurance premiums for coverage through the National Flood Insurance Program (NFIP)?
- Where can I find out information about regulatory floodplains and the National Flood Insurance Program (NFIP)?
- Who do I contact regarding the National Flood Insurance Program (NFIP)?
