The NFIP lets property owners purchase insurance protection against losses from flooding.
Participation is based on an agreement between local communities and the federal government.
Communities must implement and enforce measures to reduce future flood risks to new construction in special flood hazard areas. These regulations already exist in Michigan communities through their building codes. The federal government then makes flood insurance available within the community from any licensed property insurance agent. By employing wise floodplain management, communities participating in the NFIP can protect their residents against much of the devastating financial loss resulting from flood disasters. Careful local management of development in the floodplains promotes construction practices that can reduce flood loss and the high costs associated with flood emergencies to all levels of government.