nationalfloodinsuranceprogram.docVIP

NATIONAL FLOOD INSURANCE PROGRAM PROGRAM DESCRIPTION August 1, 2002 Federal Emergency Management Agency Federal Insurance and Mitigation Administration National Flood Insurance Program The U.S. Congress established the National Flood Insurance Program (NFIP) with the passage of the National Flood Insurance Act of 1968. The NFIP is a Federal program enabling property owners in participating communities to purchase insurance as a protection against flood losses in exchange for State and community floodplain management regulations that reduce future flood damages. Participation in the NFIP is based on an agreement between communities and the Federal Government. If a community adopts and enforces a floodplain management ordinance to reduce future flood risk to new construction in floodplains, the Federal Government will make flood insurance available within the community as a financial protection against flood losses. This insurance is designed to provide an insurance alternative to disaster assistance to reduce the escalating costs of repairing damage to buildings and their contents caused by floods. Purpose of this Document: The purpose of this document is to provide a comprehensive description of the NFIP intended for use by FEMA staff and NFIP constituents. It provides an overview and history of the Program and covers all three aspects of the Program: 1) floodplain identification and mapping; 2) floodplain management; and 3) flood insurance. NFIP activities that are described in detail in this document include: How flood-prone areas are identified and mapped; FEMA’s map modernization initiative; The floodplain management requirements a community must adopt and enforce; FEMA’s community assistance and monitoring activities; How flood insurance is sold; What structures are eligible for flood insurance coverage and the amount of coverage available; How flood insurance policies are rated and claims are paid;