National Flood Insurance Program

Because the government wants to keep the homeless rate down

The National Flood Insurance Program (NFIP) was developed by the federal government to help support victims of flooding, without relying on help from tax payers. The NFIP is supported by communities and distributed by private insurance companies.

In order to take part in the National Flood Insurance Program, your community must be a partner of the NFIP. By becoming a partner, your community agrees to follow strict building codes in order to reduce damages caused by a flood.

If your community is not a partner of the National Flood Insurance Program, you can suggest this to your community leaders. You can find out whether your community is a member on the NFIP website. Some communities are not eligible, as they are on protected land, and the government makes the effort to reduce development by removing the benefit of federal flood insurance.

Insurance companies work with the government to write and service flood policies. Because the rates for the national flood insurance are set by the government, you will not need to shop around for better prices. When looking for an insurer to help you with your federal flood insurance policy, start with your current insurance.

More than 200 insurance companies around the country offer flood insurance policies, making it even easier for you to purchase. Many insurance companies only sell in a certain region. Some national insurance companies include: State Farm, Allstate, Mutual of Omaha, and Travelers.

With the National Flood Insurance Program, homeowners can insure their homes at a value up to $250,000 and its contents up to $100,000. A non-residential property owner can insure a building up to $500,000 with the National Flood Insurance Program.

You also have the option to purchase flood insurance from a private insurer, but the costs are much higher because they are taking a greater risk in insuring you.

More information on flood insurance