A Brief Introduction to the National Flood Insurance Program

For over 30 years, members of Nielsen & Treas, LLC, have been providing its clients with constitutional, regulatory, and insurance counsel. Committed to offering high-standard service, Nielsen & Treas, LLC, helps clients with legal complexities such as those involving the National Flood Insurance Program (NFIP). 

NFIP was established to offer homeowners, home renters, and business owners an opportunity to purchase federally-backed flood insurance. The insurance is offered by insurance companies but is backed by the federal government through the Federal Emergency Management Agency (FEMA), tasked with managing the program. Mortgaged properties in high-risk flood areas are required to carry the insurance. However, some lenders also require properties that are not in designated high-risk areas to purchase it.

The insurance program was developed in response to the staggering losses suffered by homeowners and renters in the wake of floods, the most common natural disaster in the United States. They can occur anywhere in the country. As a matter of fact, 20 percent of all flood claims are in regions not considered high-risk flood zones. Most homeowner and renter insurance policies do not cover flooding. This is where NFIP comes in.