The flood insurance marketplace is tightly regulated in most communities. Most people receive their coverage by buying a plan underwritten by that National Flood Insurance Program.
Though NFIP plans are underwritten by the United States government, residents still can buy their actual plan through a major insurer that offers it. By participating in the NFIP, communities across the United States enable their residents to buy an NFIP-backed plan. They also work with the program to define high-risk flood zones in their area and make their community safer against floods.