Since standard homeowner’s insurance doesn’t cover flooding, it is important to have protection from floods. According to statistics, only 20% of American homes at risk for floods are covered by flood insurance.
In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to financially protect themselves. The NFIP is administered by the Federal Emergency Management Agency (FEMA), which works closely with private insurance companies to offer flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding.