When it comes to flood insurance, you need to do your research. Like everything in life, not having all the specifics can cost you your life’s savings. Owners of both homes and businesses need to learn the specifics, so you invest in the right type of flood insurance and you don’t get a run for your money.
In 1968, congress created the National Flood Insurance Program (NFIP). The government created this program due to the increasing amount of damage caused by floods. The Federal Emergency Management Agency (FEMA) manages the NFIP and oversees the floodplain management and mapping components of the program. Within participating communities, FEMA is responsible for determining the degree to which flooding might endanger any area of land.
Over 20,000 communities in the United States and its territories participate in the NFIP by accepting and enforcing floodplain management ordinances to decrease any future flood damage from occuring. The NFIP makes national flood insurance available to homeowners, renters, and business owners in these communities.