Federal Flood Insurance: Flood insurance coverage (under the National Flood Insurance Act) available to residents of a participating community on a subsidized and nonsubsidized premium rate basis.  The Flood Disaster Protection Act of 1973 requires the purchase of flood insurance as a condition for receiving federal or federally related financial assistance for acquisition and/or construction of buildings in special flood hazard areas.

FEMA: The Federal Emergency Management Agency charged with coordinating federal disaster response. It oversees the National Flood Insurance Program (NFIP), established in 1968.  Under the direction of the Federal Emergency Management Agency (FEMA), Congress established the National Flood Insurance Program (NFIP) in 1968 by the passage of the National Flood Insurance Act.  It's purpose was to provide property owners protection against losses from flooding. 

FIRM: Flood Insurance Rate Map.  It identifies base flood elevations, insurance risk zones, and floodplain boundaries.  For participating communities, the NFIP program makes a FIRM to help determine flood insurance costs in the various zones.  A pre-FIRM building existed before the community began participating in NFIP while a post-FIRM building was constructed after flood zones and flood regulations were established. Pre-Firm buildings were not built to flood control specifications and are therefore more vulnerable to flood damage. 

Flood: The most widespread natural disaster.  Floods are caused by storms, melting snow and ice, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam or levee failure, etc. According to the NFIP, at least two adjacent properties must be under water to classify the situation as a  flood. In rural areas, at least 2 acres of the land must be submerged.

Flood Insurance: Typical homeowners policies do not cover flood damage.  Flood insurance can only be obtained from an insurer that writes for the National Flood Insurance Program.  If your community participates in NFIP’s floodplain management program, your property should be insurable.  Properties located in "coastal barrier resource system"  (CBRS) areas and communities that do not participate in NFIP’s programs may not be eligible for flood insurance.   Flood insurance is also available for renters, condominium owners, homeowner associations,  and co-op owners.

Flood perils: Potential flood risks resulting from: the overflow of inland or tidal waters; rapid or unusual  accumulation of runoff or surface waters from any source; mud slides resulting from flooding; the washing away or erosion, collapse, or subsiding of land along a shoreline due to erosion or undermining of waves or currents exceeding the cyclical levels; and sewer backup caused by flooding.

National Flood Insurance Program: Coverage against flooding for personal and business property provided under the National Flood Insurance Act of 1968.  The NFIP encourages private insurers to participation in the program through an industry flood insurance pool of private insurers in cooperation with the U.S. Department of Housing and Urban Development (HUD).

Preferred risk policy: Low-rate flood insurance policy (usually costs slightly over $100 annually) available for properties located in flood zones of minimal and moderate risk (zones B, C, and X).

Replacement value: The amount it would cost to replace or rebuild a damaged property. Note: a policy will not pay more than its coverage amount regardless of the value of the property.   Coverage is available only for the building portion of a condominium policy. Replacement cost coverage may be available to owners of single family homes.  Commercial and apartment buildings are only eligible for their actual cash value.

Special Flood Hazard Area: The hazardous flood zones where damage is most severe.  These include zones  V (usually first-row, beach-front properties where the velocity of water is particularly damaging) and A (usually impacting properties near water).

Standard Flood Insurance Policy: The most common flood insurance policy property owners purchase from the NFIP.   It references the contract between FEMA (the insurer) and the owner (insured).

Write Your Own (WYO): Program under which policyholders obtain their flood insurance from private insurance companies rather than the NFIP.   Write Your Own companies write and service an estimated  90 percent of the flood insurance policies for NFIP.  The costs are the same whether you buy from the government or a WYO company.