Until the late 1960s, Flood Insurance was practically unavailable
to home and business owners. In 1968, Congress voted to create the
National Flood Insurance Program (NFIP). This Federal program provides
Flood Insurance at a reasonable cost in exchange for the careful
management of flood-prone areas by local communities.
Today, you can insure almost any enclosed building and its contents
against flood loss, as long as your community is participating
in the NFIP.
Remember, standard Homeowners Insurance policies do not cover
flood loss. For more details on Flood Insurance protection, call
your agent or company today. Generally, there is a 30-day waiting
period for this policy to become effective, so don't wait until
a flood is coming to apply.
More disaster Resources
National Flood Insurance Program Update
The widespread flooding associated with Hurricane Katrina in 2005, the Mississippi floods of 2011 and Hurricane Irene and superstorm Sandy in 2012 set in motion a debate about how to improve the federal program.
On March 21, 2014 President Obama signed the Homeowners Flood Insurance Affordability Act of 2014 into law. This law repeals and modifies certain provisions of the Biggert-Waters Flood Insurance Reform Act, which was enacted in 2012 and sought to make the federal flood insurance program more financially self-sufficient by eliminating rate subsidies that many property owners in high-risk areas received.
The new law reduces some rate increases already implemented, prevents some future increases and puts a surcharge on policyholders. It also prevents any policyholder from seeing an annual rate increase exceeding 18 percent.
The new 2014 law calls on the flood program's administrator, The Federal Emergency Management Agency (FEMA), to "strive" to prevent coverage from costing more than 1 percent of the amount covered. In other words, if the policy offered $100,000 of coverage, the premium would not exceed $1,000.
The 18 percent cap resulted in refunds in some cases, which began October 2014. For detailed information, visit the FEMA or Insurance Information Institute's (III) websites.
National Flood Insurance (NFIP) premiums rose slightly from $3.3 billion in 2012 to $3.5 billion in 2013. As of early November 2014, the federal government had declared 26 major flood disasters in 2014, compared with 42 in all of 2013.
Home From Flood Damage. (Institute for Business & Home
Flood Insurance Resources:
Source: Insurance Information Institute, FEMA