Wynne explained that flood insurance pays off even when a flood is not part of a declared disaster. In contrast, FEMA provides assistance only in areas where the president has declared a major disaster. NFIP sets the rates for flood insurance nationally, so there is no need to shop for price. Any agent licensed to sell property and casualty insurance can provide flood coverage.
Flood insurance is available both inside and outside of flood plains.
NFIP coverage offers many benefits, Schuback said. For example, it can enable homeowners to get secured financing to buy, build or improve structures in special flood-hazard areas. Federally regulated or insured lending institutions require NFIP coverage before they grant loans. Structures rebuilt to NFIP new-construction standards are less subject to flood damage, and are eligible for reduced rates. NFIP offers coverage for residential buildings, businesses and contents and for eligible municipal property.