National Flood Insurance Program (NFIP)
The National Flood Insurance Program is a federal program managed by the Federal Emergency Management Agency in conjunction with the Federal Insurance Administration. The Pennsylvania Department of Community and Economic Development provides assistance to communities needing to update ordinances and floodplain mapping.
Members of PEMA's staff in the Bureau of Recovery and Mitigation can provide information about the National Flood Insurance Program and its relationship to other community preparedness and disaster recovery efforts.
In 1968, Congress created the National Flood Insurance Program (NFIP) in response to the rising cost of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods.
The NFIP makes Federally-backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage. National Flood Insurance is available in more than 19,000 communities across the United States and its territories.
The NFIP is managed by the Federal Emergency Management Agency. The Federal Insurance Administration manages the insurance component of the NFIP, and works closely with FEMA’s Mitigation Directorate, which oversees the floodplain management and mapping components of the Program.
The NFIP, through partnerships with communities, the insurance industry, and the lending industry, helps reduce flood damage by nearly $800 million a year. Further, buildings constructed in compliance with NFIP building standards sustain 77 percent less damage annually than those not built in compliance. And, every $3 paid in flood insurance claims saves $1 in disaster assistance payments.
The NFIP is self-supporting for the average historical loss year, which means that operating expenses and flood insurance claims are not paid for by the taxpayer, but through premiums collected for flood insurance policies
Myths and Facts About the NFIP
Who needs flood insurance? Everyone. And everyone in a participating community of the National Flood Insurance Program (NFIP) can buy flood insurance. Nationwide more than 19,000 communities have joined the Program. In some instances people have been told that they cannot buy flood insurance because of where they live. To clear up this and other misconceptions about National Flood Insurance, the NFIP has compiled the following list of common myths about the Program, and the real facts behind them, to give you the full story about this valuable protection.
Community Ratings System (CRS)
The NFIP's CRS is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed the minimum NFIP requirements. Community participation in this program can provide premium reductions for properties located outside of Special Flood Hazard Areas (SFHA) of up to 10-percent and reductions for properties located in Special Flood Hazard Areas of up to 45-percent. The discounted flood insurance premium rates for participating communities reflect the reduced flood risk resulting from the additional actions taken. These discounts can be obtained by undertaking public information, mapping and regulations, flood damage reduction and flood preparedness activities. The table below summarizes the number of credit points associated with each corresponding CRS class.