Communities voluntarily join the NFIP to make their citizens eligible to purchase the insurance. Almost 19,000 communities Nationwide participate. Communities agree to adopt and enforce a floodplain management ordinance to regulate development in flood hazard areas. The NFIP requirements, which are minimum criteria for participation in the program, broadly applicable across the Nation, are a starting point. It provides a built-in incentive for community efforts beyond these minimum floodplain management requirements in the form of premium discounts.
Enforcement is key.
Repetitive Loss Dealing with the economic costs and personal suffering caused by repetitively flooded buildings is one of our biggest challenges. When we assumed the risk for the older, pre-FIRM properties built in harm's way, we knew they would experience a higher loss rate. We are targeting those buildings that have suffered the most loss. We will be providing grant funds to voluntarily relocate, buy-out or elevate them to prevent further loss. For those who choose not to accept our offer of assistance, we are considering insurance changes which, if adopted, would increase premiums to reflect more of the full risk.