National Flood Insurance Program
Myths and Facts aboutthe National FloodInsurance Program
The NFIP encouragescoastal development.
One of the NFIP’s primary objectivesis to guide development away from high-floodrisk areas. NFIP regulations minimize theimpact of structures that are built in SFHAs byrequiring them not to cause obstructions to thenatural flow of floodwaters. Also, as a conditionof community participation in the NFIP, thosestructures built within SFHAs must adhereto strict floodplain management regulationsenforced by the community.In addition, the Coastal Barrier Resources Act(CBRA) of 1982 relies on the NFIP to discouragebuilding in fragile coastal areas by prohibitingthe sale of flood insurance in designated CBRAareas. While the NFIP does not prohibit propertyowners from building in these areas, any Federalfinancial assistance, including federally backedflood insurance, is prohibited. However, theCBRA does not prohibit privately financed devel-opment or insurance.
Federal disaster assistancewill pay for flood damage.
Before a community is eligiblefor disaster assistance, it must be declared afederal disaster area. Federal disaster assistancedeclarations are issued in less than 50 percentof flooding events. The premium for an NFIPpolicy, averaging a little over $500 a year, can beless expensive than the monthly payments on afederal disaster loan.Furthermore, if you are uninsured and receivefederal disaster assistance after a flood, you mustpurchase flood insurance to remain eligible forfuture disaster relief.
The NFIP does not coverflooding resulting from hurricanes or theoverflow of rivers or tidal waters.
The NFIP defines covered flooding asa general and temporary condition during whichthe surface of normally dry land is partially orcompletely inundated. Two properties in the areaor two or more acres must be affected. Floodingcan be caused by:
• Overflow of inland or tidal waters, or• Unusual and rapid accumulation or runoff of surface waters from any source, such as heavyrainfall, or• Mudflow, i.e., a river of liquid and flowingmud on the surfaces of normally dryland areas, or• Collapse or subsidence of land along the shoreof a lake or other body of water, resulting fromerosion or the effect of waves, or water cur-rents exceeding normal, cyclical levels.
For more information about the NFIP and flood insurance, call
or contact your insurance company or agent.For an agent referral, call 1-888-435-6637TDD 1-800-427-5593http://www.fema.gov/business/nfiphttp://www.floodsmart.gov
(2/10)FEMA B-690 / Catalog No. 08094-3