What is the NFIP and What do they do
The National Flood Insurance Program
The NFIP, an acronym for the National Flood Insurance Program is a national program in the United States that was created back in 1968. The primary mandate of this program is to allow people who own property in flood risk areas to buy insurance offered by the government to cover their property against damages caused by flooding. It also enforces protection against loans and credits that are obtained using property located in communities within the NFIP as security.
The NFIP program is an agreement between the involved communities and the government. This agreement is based on the accord that communities should implement any floodplain management activity to help alleviate cases of flood risks to new buildings in the Special Flood Hazard Areas. In return for this pledge by the supporting communities, the government is supposed to offer flood insurance to these communities as financial support for the losses incurred during the occurrence of floods. The general direction of this program was to create a win-win situation for both the government and the communities that will help reduce the losses experienced during floods, especially in the high-risk SFPAs.
Since the inception of this program, lawmakers have amended several aspects related to the premiums and eligible zones, but its general purpose remains.
Roles Of The NFIP
It has been mentioned that the primary purpose of the NFIP is to help promote the public interest by encouraging people to utilize land accordingly while minimizing their exposure to flood risks in the hazard areas. This program is run by FEMA which is under the Department of Homeland Security, and it has three essential aspects that define what it does;
• Pointing out of flood hazards and mapping them. Hydraulic studies are conducted on the areas of concern and maps are created to help zone out the areas that are vulnerable to floods. These areas are divided into different zones based on the kinds of flood risks they are exposed to.
• Flood control methodologies which entail determining the set standards and structures that communities must adhere to in trying to develop the risk areas in the safest way possible.
• Flood coverage which offers financial backing to people owning real estate units in the risk areas in case floods come and cause damages.
Defining The NFIP And Its Roles
Looking at the insurance field, it is evident that most insurance companies have stringent terms that dictate the way they cover property against these natural risks. In most cases, the assistance received by the afflicted persons does not cater for all the costs needed to restore the buildings and clean them. Disaster loans are available to the affected people, and they do not help the financial burden brought about by the damages due to the strict repayment conditions.
The other mandate of the NFIP is to try and break the flood damage cycle. Some areas experience floods regularly, and the same buildings keep on being damaged by the floods over and over again. Before the flood plain control standards were put in place, people used to put up their buildings, in the same way, something that made the structures vulnerable to the same damages. On the contrary, buildings put up consistent with the NFIP guidelines are optimized to survive through floods, and most of them register about eight percent less damage than the previous construction methods.
The role of NFIP in helping to manage losses associated with floods can be summarized by its ability to delegate specified functions to the government and the communities. These are what form the basis of their regulations, and as long as the communities uphold their end of the agreement, the government will always give them a helping hand when the floods strike.
More Resources Related to Flood Insurance and Recovery
How To Hire The Right Contractor To Repair Your Home – Anita Clark
Selling And Buying A Home After A Hurricane: Is It A Good Idea? – Fred Franks Jr.
Reasons Why An Appraisal Comes in Low –
Factors That Determine Home Appreciation – Wendy Weir
Inspect Your Home A Little Closer, Before Selling – Lynn Pineda