National Flood Insurance
According to FEMA, flooding is the #1 natural disaster in the United States. The flood insurance professionals at National National Flood Insurance, LLC., specialize in flood insurance.
Our mission at National Flood Insurance is to help residents to understand the basics about flood insurance and to address the common misconceptions. For example, the first misconception is that home owner’s insurance covers the flooding risk. The fact is that home owner’s policies usually/generally do not provide flood coverage and this fact is highlighted in bold letters on the first page of your home owner’s policy. The second most common misconception is that flood policies are expensive to purchase or obtain. Actually in FEMA determined Preferred Risk Zones, you can purchase flood insurance for as little as $129 per year. Last but not least, some home owners think that they do not live in a flood zone. The fact is FEMA has designated all areas in the United States as flood zones each with different levels of risk.
The flood insurance specialists at National Flood Insurance, LLC not only specialize in flood insurance exclusively, but also have extensive knowledge of the subject and will help answer all of your questions.
National Flood Insurance, LLC., directly represents FEMA. FEMA administers and processes flood insurance policies through the National Flood Insurance Program, (NFIP).
Please call to get a free Flood Zone Determination, a free flood insurance quote or just to discuss your your flood insurance related issues and questions. Don’t be left without flood insurance. Call us today!
What is the history of the NFIP?
In the mid-twentieth century, flood issues nationally were addressed by constructing sea walls, levees, and dams. The insurance industry reviewed the issue of flood insurance during the 1920’s and determined that the premiums would be too costly and only those living in high risk areas would purchase the coverage; therefore, the insurance industry opted not to offer flood insurance. With no flood insurance coverage from private insurance companies, Congress realized that flooding was a real problem for those individuals living in flood plains and flood damage was very expensive.
In 1968 Congress passed the National Flood Insurance Act. This Act created the National Flood Insurance Program (NFIP). Initially, NFIP was to transfer the cost from taxpayers through insurance premiums, steer development away from hazard areas and require buildings to be constructed to minimize or prevent flood damage. During this time, NFIP was under the umbrella of Housing and Urban Development (HUD).
In 1972 there were fewer than 100,000 flood insurance policies in force nationwide. In this same year, Hurricane Agnes devastated a wide area of the eastern United States and caused approximately $4 billion in damages. Congress investigated and noted that very few buildings were insured for flood, which led to the Flood Disaster Protection Act passed in 1973. This Act amended the Act passed in 1968.
The Flood Disaster Protection Act of 1973 required buildings located in identified flood hazard areas to have flood insurance coverage as a condition of receiving federal aid or loans from federally insured banks for federal disaster assistance.
In 1979 The Federal Insurance Administration and the NFIP were transferred to the newly created Federal Emergency Management Agency (FEMA). By the end of the 1970’s, there were approximately two million flood policies in force.
5.6 Million Flood Insurance Policies
Moving forward thirty years, there were approximately 5.6 million flood policies in force. There have also been significant changes to the program as well. The Community Rating System was implemented during the 1990’s, which increased the amounts of flood insurance coverage and established a grant program for mitigation plans and projects.
Today, flood insurance is available in more than 20,000 communities and U.S. territories and there are about 100 private insurance companies nationally that offer flood insurance backed by the government. Although federal assistance is still a vital part of disaster recovery, the NFIP saves the United States taxpayer millions of dollars every year.
