NFIP

Here we go again. Every few years, it seems there’s a potential lapse in the National Flood Insurance Program (NFIP). While very scary sounding and not without the possibility of serious consequences, it’s likely a resolution will be reached prior to the midnight, September 30 deadline, and even if it’s not, a lapse would likely be hours or days, not weeks or months. However, if there is a lapse, there are things lenders and insurance agents who write NFIP policies need to know.

This article is written to aid the general public in understanding the mandatory purchase requirement and FEMA’s flood zone designations. It describes the FEMA zones and the mandatory purchase requirement at a high level and provides some details for those who have interest in nuances.

This article is written to aid property owners regarding their flood risk. Floodplain Managers, flood insurance professionals, surveyors, etc. may note that this information is high-level and not every variable is covered. Even so, it is hoped this information helps those not directly involved in the industry understand the basic terms and how they relate to flood risk and flood insurance rates.

So you finally did it.  You saved up enough money to put a down payment on your first home, and pay closing costs.  You spent hours completing paperwork, and gathering documents for your mortgage lender.

Who doesn’t want to lower the cost of… everything?  Flood insurance is one of those things where consumers might feel a little helpless because most flood insurance is issued through the Federal Emergency Management Agency (FEMA) so the rates are what they are.  First, find a knowledgeable agent that really knows the National Flood Insurance Program.  Second, check out our list of the top 5 ways to lower your premiums.

#1 Get an Elevation Certificate

Only 390 counties in the US hold about 90% of the National Flood Insurance Program (NFIP) flood insurance policies.

Click here to see a map

To put that in perspective, there are about 3,144 county and county equivalent areas in the US.  Therefore, about 12% of the counties hold about 90% of the flood insurance policies.  And there are about 169 million people living in those counties, which is 54% of the US population.