Why is participation in the NFIP on a community basis rather than on an individual basis?

The National Flood Insurance Act allows FIA to make flood insurance available in areas where a public body has adopted floodplain management regulations for its flood-prone areas. Individual citizens cannot regulate building or establish construction priorities.  Without community oversight of building activities in the floodplain, careless building could result in substantial flood loss.

No. It is voluntary (although some states require NFIP participation under their state floodplain management program). Each community must assess its flood hazard and determine whether flood insurance and floodplain management is beneficial to the community's residents and economy. The decision to participate in the NFIP should be made with full awareness because a community's participation status can significantly affect current and future owners of property in Special Flood Hazard Areas (SFHA) and the availability of federal financial assistance in flood-prone areas.

What if I want flood insurance, but my community doesn't participate in the National Flood Insurance Program?

A: Unfortunately, you may not purchase flood insurance. Let your elected officials know that you want to be in the NFIP program. Most communities are willing to develop a plan for floodplain management and adopt flood-resistant construction practices. A local petition drive may be necessary. If a Presidentially declared flood disaster occurs in a non-participating community, no federal financial assistance can be provided. Eligible applicants may receive other forms of disaster assistance that are not related to permanent repair and reconstruction of insurable buildings.

Note: Flood insurance is mandatory as a condition of receipt of federal-related financial assistance for acquisition and/or construction of buildings in SFHAs of any participating community. Those communities notified as "flood-prone" which do not apply for participation in the NFIP within 1 year of notification, are ineligible for federal or federally-related financial assistance for acquisition, construction, reconstruction of insurable buildings in the SFHA. Conventional loans are available in the SFHA of non-participating communities for these purposes at the lender's risk.

What is the role of the local community in is flood hazard assessment?

Prior to a flood hazard assessment by FEMA, public meetings are usually held whereby interested parties may present relevant facts to help ensure accurate results. Before and during the study, FEMA works closely with each community's officials to describe the technical procedures and to obtain community input before publication of the Flood Insurance Study (FIS) and Flood Insurance Rate Map (FIRM).

NFIP: National Flood Insurance Program

SFHA: Special Flood Hazard Area

FEMA: Federal Emergency Management Agency