The National Flood Insurance Program (NFIP) is a federal program not subject to state consumer protection statutes and regulations. In 1968, Congress created the NFIP to help property owners protect against the peril of flood. The NFIP only offers flood insurance in communities that agree to adopt and enforce ordinances and floodplain management satisfying FEMA flood risk reduction requirements. FEMA offers flood insurance to homeowners, business owners and renters in these communities. The NFIP is currently endeavoring to repay billions of dollars of debt to the US treasury.
What does the NFIP cover?
An NFIP policy covers a single structure. Coverage for a detached garage and a shed, for example, would require separate policies in addition to the one covering the home itself. Each one has its own minimum premium and can significantly increase the effective rate of the coverage. Personal contents are also a separate item on the policy, added at additional charge. Refer to the NFIP policy for details of features and limitations.
When does my policy become effective?
The policy inception date will be the earliest date allowed under the NFIP rules and regulations.
Is there a waiting period before coverage?
Typically a 30-day waiting period applies, measured from date of purchase, during which time no benefits are payable in case of loss. This waiting period may be waived when the policy is required as part of escrow closing.
Is the policy automatically renewed?
A renewal quote/invoice will be sent to the designated party prior to expiration of the policy term. If the NFIP does not receive premium payment in the time frame allowed under NFIP rules and regulations, coverage will cease.