Historically, flooding has brought damage and destruction to communities across the United States. In order to help alleviate the financial devastation caused by flooding, Congress created the National Flood Insurance Program (NFIP) in 1968. The NFIP, overseen by the Federal Emergency Management Agency (FEMA), enables homeowners, business owners, and renters in participating communities to purchase federally backed flood insurance. This insurance is designed to provide an alternative to disaster assistance to meet the escalating costs of repairing flood damage to buildings and their contents.
You can get flood insurance:
All properties are at some risk for flooding. The NFIP is dedicated to making property owners and renters aware of the need for flood insurance—not only among those who live and work in high-risk areas, but those in moderate- to low-risk areas, too. Properties located outside of the mapped high-risk areas are not exempt from flooding. Their risk, while reduced, is not removed. Consumers need to know that most homeowners policies do not cover flooding. Only a flood insurance policy will financially protect you from flood damage costs. Flood insurance is available to homeowners, business owners, and renters for both a building and its contents. Homeowners can insure a home for up to $250,000 and its contents for up to $100,000. Renters can cover their belongings for up to $100,000. Non-residential property owners can insure a building and its contents for up to $500,000 each. The average premium for a yearly flood insurance policy is about $700 per year.
Residents and business owners who live or work in an SFHA are required to purchase flood insurance if they have acquired a loan from a federally regulated and insured lender, and they must carry the insurance for the life of the loan. Those outside of mapped SFHAs can also purchase flood insurance, and they may be eligible for a lower-cost policy (called a Preferred Risk Policy). The NFIP encourages all residents to learn about their flood risk and to protect themselves with flood insurance. How to Purchase Flood Insurance Flood insurance is sold and serviced by insurance agents in more than 22,000 communities nationwide. To purchase a policy, call your insurance agent or 1-800-427-2419 to find an agent in your area, or visit FloodSmart.gov/purchasefloodinsurance.
* This is a partial list of coverage. Refer to the Standard Flood Insurance Policy (SFIP) for a description and full list of coverage and exclusions.
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