National Flood Insurance Program
Plain-English definition and practical context.
Definition: National Flood Insurance Program | (NFIP)
pronunciation: en-eff-eye-pee
The National Flood Insurance Program (NFIP) is a federal program created by Congress and administered by the Federal Emergency Management Agency (FEMA). It provides flood insurance to property owners, renters, and businesses in participating communities and sets minimum floodplain management standards aimed at reducing future flood damage.
Under the NFIP, communities agree to adopt and enforce floodplain management regulations that meet or exceed federal criteria. In return, flood insurance backed by the federal government becomes available to property owners within those communities. The program also produces Flood Insurance Rate Maps (FIRMs), which identify flood risk zones and are used for insurance rating and regulatory purposes.
The NFIP is authorized under the National Flood Insurance Act of 1968 and is governed by federal regulations found in Title 44 of the Code of Federal Regulations (CFR), Subchapter B. These regulations define eligibility, coverage rules, policy forms, and floodplain management requirements.