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National Flood Insurance Program

The National Flood Insurance Program (NFIP) is a federal program administered by FEMA, which makes federally backed flood insurance available to homeowners, renters and business owners. Insurance costs vary depending on how much insurance is purchased, what it covers and the property's flood risk. In order to qualify for flood insurance the County must participate in the NFIP. The County has been a participant since February 19, 1987.

Mandatory Purchase of Flood Insurance

Pursuant to the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, the purchase of flood insurance is mandatory for all federal or federally related financial assistance for the acquisition and, or, construction of buildings in Special Flood Hazard Areas. Special Flood Hazard Areas are defined as any A or V flood zone on a FEMA Flood Insurance Rate Map (FIRM).

The mandatory purchase requirement also applies to secured loans from such financial institutions as commercial lenders, savings and loan associations, savings banks, and credit unions that are regulated, supervised, or insured by federal agencies, such as the Federal Reserve, the Federal Deposit Insurance Corporation, the Comptroller of Currency, the Farm Credit Administration, the Office of Thrift Supervision, and the National Credit Union Administration. Additionally, all loans purchased by Fannie Mae or Freddie Mac in the secondary mortgage market are subject to the mandatory requirement for flood insurance.

The requirement for mandatory insurance applies to real property when a building or portion of a building is in a Special Flood Hazard Area. However, lenders, own their initiatives, may require the purchase of flood insurance even though a building may be entirely outside a Special Flood Hazard Area.