Federal Flood Insurance provides coverage to residents, including businesses and nonbusiness operations, in communities qualified under the National Flood Insurance Program (NFIP), offering subsidized and nonsubsidized premium rates for structures and their contents.
Flood insurance is an insurance policy that covers property damage due to natural flooding. This type of insurance is offered by private insurers but is encouraged and subsidized by the federal government. Buyers using a federally related mortgage to purchase a property in a floodplain are required to purchase flood insurance.
An insurance policy designed specifically for homeowners, providing protection against losses caused by common disasters, hazards, theft, and liability. Coverage and costs of homeowner’s insurance policies can vary widely.
The National Flood Insurance Program (NFIP) aims to reduce the impact of flooding on private and public structures by providing affordable insurance to property owners. Furthermore, it encourages communities to adopt and enforce floodplain management regulations.
