Flood Insurance

Floodplain management allows FEMA to monitor the NFIP and ensure flood insurance is available for property owners through individual agents and insurance companies. Generally speaking, if a home, rental property or commercial building is financed through a federally-funded or insured mortgage, structures that lie in a high-risk flood area are required to have NFIP coverage. Conversely, properties in zones with low to moderate risks are not required to participate but flood coverage is highly recommended. Coverage is NOT purchased directly from any government entity. Instead, the flood insurance rates, coverage, provisions and conditions for the settlement of a claim are the same for a given flood zone but written and serviced through private insurance companies.

Standard coverage purchased under the provisions of the NFIP is a single peril policy that pays for damages based on the replacement cost or the policy’s limit of liability, but the payout is for whichever amount is less. The NFIP offers home owners flood insurance coverage for:

1. Building Property up to $250,000
2. Personal Property up to $100,000

There are other dwelling forms available for insuring residential condominium associations buildings and privately-owned family residential and non-residential buildings. Coverage for flood damages differ slightly and may contain a coinsurance clause with a pro rata reduction in claim payments if a building is insured for less than 80% of the replacement value.