Natural Disaster / Flood Insurance
Natural disasters, such as hurricanes, floods, and earthquakes, are devastating for communities and individuals, and are costly to insurers, and state and federal governments. Insurers have responded to the costs of recent natural disasters by raising premiums or declining to write policies in disaster prone areas. Without a greater government role in property insurance, many homeowners and potential home buyers may not be able to obtain insurance coverage. As a result, there may not be sufficient resources or coverage in many parts of the country to help homeowners and their communities recover from future natural disasters.
National Flood Insurance Program
The National Flood Insurance Program (NFIP) provides flood insurance to homeowners in participating communities in flood-prone areas, who could not otherwise obtain coverage due to cost or ineligibility. Without insurance provided through NFIP, property owners in federally designated areas across +10,000 communities nationwide could not obtain mortgages.
The NFIP also produces the Flood Insurance Rate Maps (FIRMs), which are critical for the transaction of properties located in, or adjacent to, a floodplain. If these maps are not updated regularly, the information may be incorrect and a buyer may be unaware that a property is at an increased risk for flooding.
Latest News
Map Modernization Program Funded Through 2010 (Oct. 23)
House Approves Flood Insurance Extension (Aug. 3)
