The National Flood Insurance Program
What is the National Flood Insurance Program?
In 1968, the National Flood Insurance Program, or NFIP, formed under the United States Congress as a form of financial protection against of losses related to flooding. The program is available to home owners, certain business owners, and persons who are renting homes. The Federal Emergency Management Agency(FEMA) coordinates the NFIP to provide flood insurance from a range of qualified private insurance companies.
Flood Insurance Rates Through the NFIP
All rates included in the National Flood Insurance Program are set by FEMA. These standardized rates do not differ among the various private insurance providers nor within these companies listed under the NFIP. However, costs do depend upon several risk factors such as:
- when your home/building was constructed
- style and type of home/building
- location of the property
Buildings belong to high-risk or low-risk areas as assigned by FEMA. Officials evaluate hazard elements to set an appropriate standard for insurance prices.
What does the NFIP Cover?
NFIP covers two different types of claims:
- building: including structural damage to houses or buildings to the foundation and flooring, electrical and plumbing as well as heating/cooling units. Building claims may also consist of reimbursements for refrigerators, furnaces, stoves and other built-in appliances.
- contents: involves personal belongings such as clothing, electronics, furniture or curtains. This also applies to movable appliances such as portable air-conditioning systems, microwaves, and washers or dryers.
How Does NFIP Reimburse for Losses?
The National Flood Insurance Program generally compensates homeowners through reimbursing the Replacement Cost Value (RCV) or Actual Cash Value (ACV) depending on the case. Replacement Cost Value is the amount necessary to repair or replace elements of the property which may have been destroyed. Personal property is compensated through the Actual Cash Value (estimated by subtracting the depreciation of the item from the Replacement Cost Value at the specific time in which the damage was incurred). Cases vary.
If you feel that you have not been adequately compensated for your losses by your insurance provider, complete the damage claim form at the upper-right section of this page to get assistance.