What does community participation in the National Flood Insurance Program mean and how does that affect a homeowner?
Communities, like the City of Wood River, decide to participate in the National Flood Insurance Program (NFIP). Specifically, the City agreed to manage flood hazard areas by adopting minimum regulatory standards may participate in the NFIP. If a community does not participate in the program, property owners in that jurisdiction are not able to purchase federally backed flood insurance. Also, federal grants, loans, disaster assistance, and Federal mortgage insurance are unavailable for the acquisition or construction of structures located in the floodplain as shown on the NFIP maps. Similarly, if a community does not participate in the program, property owners are not subject to federal requirements of mandatory flood insurance. However, a lender is still required to inspect any flood maps to determine flood hazard risk and provide notice of such risk. A lender may require a borrower to obtain flood insurance even in the absence of a federally mandatory requirement.
Communities, i.e., local governments, decide to participate in the National Flood Insurance Program (NFIP). Specifically, communities that agree to manage flood hazard areas by adopting minimum regulatory standards may participate in the NFIP. These standards are listed in Section 60.3 of the NFIP regulations. If a community does not participate in the program, property owners in that jurisdiction are not able to purchase federally backed flood insurance. Also, federal grants, loans, disaster assistance, and Federal mortgage insurance are unavailable for the acquisition or construction of structures located in the floodplain as shown on the NFIP maps. Similarly, if a community does not participate in the program, property owners are not subject to federal requirements of mandatory flood insurance. However, a lender is still required to inspect any flood maps to determine flood hazard risk and provide notice of such risk. A lender may require a borrower to obtain flood insurance even in
Related Questions
- Is participation in the National Flood Insurance Program (NFIP) a requirement to qualify for the PDM program? Are there any exceptions?
- What does community participation in the National Flood Insurance Program (NFIP) mean, and how does that affect a homeowner?
- What does community participation in the National Flood Insurance Program mean and how does that affect a homeowner?
