If your home or business is in an area that could flood, you could benefit from the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA). It provides affordable flood insurance to homeowners, renters and business owners.

Why is Flood Insurance Important?

Standard home insurance policies do not cover flood damage. Just an inch of floodwater in your home can cost thousands in repairs. Having flood insurance protects you financially if your property gets damaged by flooding.

The NFIP has two main parts.

• The first part is providing flood insurance policies that can be purchased from insurance companies.
• The second part is encouraging communities to establish floodplain management regulations to minimize future flood damage.

Over 22,500 communities across the United States participate in the NFIP. If a community adopts and enforces FEMA’s floodplain management requirements, the federal government will make flood insurance available to homes and businesses in that community.

The National Flood Insurance Program (NFIP) Flood Insurance Manual is used primarily by insurers and agents selling and servicing NFIP flood insurance policies. The current manuals are for use with policies written under the NFIP rating methodology.

Recent Updates to the Program

On April 1, FEMA released an updated flood insurance manual with some changes to the NFIP program. However, the actual flood insurance coverage remains the same as before.

The biggest change is clarifying some of the rules and requirements to make them easier to understand. FEMA wants insurance professionals to provide clear and consistent information to policyholders.

The updates incorporate guidance that FEMA previously provided to insurance companies that sell and service NFIP policies. There are no major changes to flood insurance pricing or what gets covered under the policies.

FEMA regularly reviews and updates the NFIP program materials to improve the program. Their goal is to have an easy-to-follow NFIP that encourages more homeowners in flood-prone areas to get insured against flooding disasters.

If your home could potentially flood, look into getting an NFIP policy. Flood damage can be devastating financially, but having the right insurance protects you.

Learn more from floodsmart.gov.