Flood Insurance FAQs

The National Flood Insurance Program or NFIP is a program that provides insurance to help reduce the socio-economic impact of floods. Learn more about the National Flood Insurance Program at FloodSmart.gov.

Your flood zone gives you an idea of your property’s flood risk, what type of flood hazard you may be at risk of, and the estimated severity of the flooding. Your flood zone is used to determine insurance requirements and costs. If you believe your home has been incorrectly designated, you can appeal through FEMA to have the designation reviewed. To learn more about what you can do to change your flood zone designation, contact your local flood insurance agent and/or local government official. Even if you are able to change your designation, however, flood insurance is recommended as one in three flood insurance claims come from moderate- to low-risk flood areas.

Flood insurance premium costs depend on a variety of factors. In 2021, FEMA implemented a new risk rating methodology called Risk Rating 2.0: Equity in Action (RR2.0). Under RR2.0, while the average cost of flood insurance is still unknown, the maximum rate is $12,125 a year using the current methodology, although that could change in future years. In 2021, pre-RR2.0, the average annual cost for flood insurance was just under $1,000 per year. Learn more about flood insurance and Risk Rating 2.0 at FEMA.gov.

Yes, you will work with your insurance agent to complete a Flood Insurance Application. They will rely on you to answer most of the questions based on your knowledge of your property. The way you answer the questions can affect your insurance premium estimate so you want to make sure you answer as accurately as possible. If you do not know the answer to a question on the application, consult with your local floodplain manager ahead of your meeting with your flood insurance agent.

Learn about flood insurance and why it matters on the Purchase Flood Insurance mitigation strategy page and at FloodSmart.gov. To learn about specific flood insurance options and costs, contact your local flood insurance agent.

Flood insurance via the National Flood Insurance Program is only available to residents in participating communities. To find out if your community participates in the NFIP, check its status in the Community Status Book.

Learn more about if you need or are required to have flood insurance on the Am I Required To Have Flood Insurance? page of Floodsmart.gov.

The NFIP sets minimum building and land use standards and allows individual communities to adopt their own additional or more stringent requirements via local floodplain management ordinances, regulations, and laws. Depending on when your property was built, you may be exempt from having to meet all NFIP requirements to be NFIP compliant. However, if your building sustained substantial damage during a recent flood event, you may be required to bring it into compliance with NFIP and local floodplain management regulations if it was not already. Consult your local officials to determine if you are NFIP compliant and to learn about your community’s specific requirements, including its substantial improvement threshold.

FEMA’s Office of the Flood Insurance Advocate (OFIA) has created a great video to help you better understand how to navigate the claims process for policies under the National Flood Insurance Program (NFIP). You can also learn more at How Do I Start My Flood Claim on FloodSmart.gov.

The NFIP definition of a substantially damaged building is one that has sustained damage, of any origin, “whereby the cost of restoring the structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.” When buildings are determined to be substantially damaged, the building must be retrofitted to conform to the current locally enforced floodplain management regulations. To learn more about what this means in your community, contact your local floodplain manager.

The NFIP definition of a substantially damaged building is one that has been modified, remodeled or otherwise improved such that the value of the addition or remodeling “equals or exceeds 50 percent of the market value of the structure before the ‘start of construction’ of the improvement…The term does not include either: (1) any project for improvement of a structure to correct existing violations of State or local health, sanitary, or safety code specifications that have been identified by the local code enforcement official and that are the minimum necessary to ensure safe living conditions, or (2) any alteration of a ‘historic structure,’ provided that the alteration will not preclude the structure’s continued designation as a ‘historic structure.’” When buildings are determined to be substantially damaged, the building must be retrofitted to conform to the current locally enforced floodplain management regulations. To learn more about what this means in your community, contact your local floodplain manager.

Repetitive Loss properties are those NFIP-insured residential buildings and the contents for which “two or more claims of more than $1,000 were paid by the NFIP within any rolling 10-year period, since 1978.” Learn more about Repetitive Loss properties in ASFPM’s Community Resilience Guide for Repetitive Flood Loss.

Yes, basements have a specific definition under the National Flood Insurance Program (NFIP). You should understand this definition as it will help you better understand what will and will not be covered with regard to your basement if you need to file a flood insurance claim. The FEMA Office of the Flood Insurance Advocate has created a helpful video on this topic:

Due to the recent implementation of Risk Rating 2.0, it is unknown how the implementation of mitigation projects will impact insurance premiums. As more information on this topic comes out, this FAQ will be updated to reflect current knowledge.

Due to the recent implementation of Risk Rating 2.0, it is unknown how the implementation of mitigation projects will impact insurance premiums. As more information on this topic comes out, this FAQ will be updated to reflect current knowledge.

If you are constructing a new building in a flood prone area, you must comply with all current NFIP and local floodplain management regulations – which will ensure you are building to a high standard of safety. Contact your local floodplain official and a registered design professional in your community to find out what requirements you must follow and ensure your new home is built to code. Visit our Find Help page to learn more.

Yes, FEMA manages a program called the Community Rating System (CRS) which provides discounted flood insurance premium rates to residents of participating communities based on the community’s class rating. Learn more about CRS and if your community is a participating CRS community at FEMA.gov.