National Flood Insurance Program (NFIP)

Federal program created by Congress in 1968 to identify flood-prone areas nationwide and make flood insurance available for properties in participating communities. Communities must enact and enforce floodplain management regulations that meet or exceed the criteria established by FEMA in order to participate in the program. This program requires properties within the floodplain with a federally backed or regulated mortgage, or those that receive federal housing subsidies, to buy flood insurance.
This insurance is designed to provide an alternative to disaster assistance to reduce the escalating costs of repairing flood damage.