A SFHA is any flood zone starting with the letter “A” or “V.” The requirement applies to secured mortgage loans from financial institutions, all mortgage loans purchased by Fannie Mae or Freddie Mac, and all forms of federally related financial assistance. The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 made the purchase of flood insurance mandatory for federally backed mortgages on buildings located in a Special Flood Hazard Area (SFHA). For contents-only policies, residences are limited to $100,000 in damages, while the contents of commercial and other structures are capped at $500,000. Other residential buildings and non-residential buildings are capped at $500,000. Single-family homes, or 2-4 family residential structures are limited to $250,000 in damages. Flood insurance coverage from the NFIP is an asset to homeowners and business owners as it reimburses property owners for financial losses incurred from a flood event.įlood insurance coverage through the NFIP does have limits. Flood insurance can protect citizens in the event a federal disaster has not been declared (which is required for most federal disaster assistance to be offered).
This includes homes, condominiums, mobile homes, commercial structures, agricultural structures and the contents of rental units. However, flood insurance is available for most enclosed buildings and can cover the structure and/or contents. Most homeowner insurance policies do not cover property losses resulting from flooding.
#NFIP FLOOD INSURANCE HOW TO#
The United States Department of Homeland Security (DHS), the Federal Emergency Management Agency (FEMA) and the Red Cross all provide facts about floods and information about how to prepare for them:
#NFIP FLOOD INSURANCE CODE#
As a NFIP community, unincorporated Nassau County created a Floodplain Management Ordinance that establishes the county's agreement to regulate floodplain development according to the Code of Federal Regulations 44. The NFIP is administered by the Federal Emergency Management Agency. The National Flood Insurance Program (NFIP) was created by Congress in 1968 to protect lives, property and to reduce the financial burden from flood events. Overview of the National Flood Insurance Program
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