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.
Separate policies are necessary for residences and home businesses.
Renters can benefit from flood insurance, too. They can insure the contents of the buildings they rent, whether residential or commercial. Flood insurance provides disaster victims with protection for the future. FEMA comes to the aid of first-time disaster victims. In case of a second disaster, however, FEMA won't help those victims if they were eligible for flood insurance but did not get it.