Glossary

National Flood Insurance Program (NFIP)

The federal program, run by FEMA since 1968, that makes flood insurance available to owners and renters in communities that adopt floodplain management rules.

Also called: NFIP, federal flood insurance, FEMA flood insurance

The National Flood Insurance Program was created by the National Flood Insurance Act of 1968 and is run by FEMA. Homeowners policies exclude flood, so the NFIP is the main source of flood coverage. A community joins by adopting floodplain management rules, and its residents can then buy the Standard Flood Insurance Policy.

According to FEMA's FloodSmart materials in 2026, a one-to-four family home can carry up to $250,000 in building coverage and up to $100,000 for contents. A new policy generally has a 30-day waiting period, with exceptions such as coverage bought in connection with a new, increased or renewed mortgage loan. Policies are sold through agents and private Write Your Own companies; pricing follows Risk Rating 2.0.

Federally regulated or insured lenders must require flood insurance on buildings in a high-risk area, and many owners buy it anyway. The limits may fall short of what it would cost to rebuild, which is where excess flood insurance coverage comes in. NFIP policies pay for direct physical flood damage and do not include living expense coverage the way a homeowners policy does. Congress must periodically reauthorize the program; see NFIP reauthorization and what a lapse means for you for what a lapse means, and the guide on NFIP flood insurance explained for coverage details. Confirm current limits with your agent before buying.

Last reviewed October 10, 2026

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Related terms

Write Your Own (WYO) insurer A private insurance company that sells and services federal flood policies under its own name while the federal government carries the flood losses. Flood zone A map designation, such as Zone AE, VE or X, that classifies a property's flood risk and helps decide whether a lender will require flood insurance. Special flood hazard area (SFHA) The land FEMA maps as having at least a 1% chance of flooding in any year, where lenders must require flood insurance on federally backed mortgages. Risk Rating 2.0 FEMA's current method of pricing NFIP flood policies by each home's own flood risk and rebuilding cost rather than mainly by flood zone and elevation. Private flood insurance Flood coverage issued on an insurer's own form and rates instead of through the federal program, which a lender may accept in place of an NFIP policy. Excess flood insurance Extra flood coverage that sits above a primary flood policy, usually the NFIP maximum, to pay for losses beyond the first policy's limits.

Related guides

What flood insurance covers in a basement NFIP flood insurance covers only a short list of basement items, like the furnace, sump pump and unfinished drywall. What is excluded and how to fill the gaps. Insuring a coastal home: wind, flood and where to find coverage Coastal owners often assemble coverage from several sources: a homeowners policy, a flood policy and sometimes a state wind pool. How the pieces fit and cost. Disaster aid and insurance fraud schemes Fake FEMA inspectors, grant-fee callers, phony claim helpers and look-alike charities after a disaster, the rules that expose them, and where to report. Does homeowners insurance cover flooding? No. A standard homeowners policy excludes flood, surface water and storm surge. Flood coverage takes a separate NFIP or private flood policy. The earth movement exclusion explained What the HO-3 earth movement exclusion removes, what it leaves covered, how it differs from settling and flood exclusions, and how to challenge a denial. Elevation certificates and your flood premium What a FEMA elevation certificate records, who must have one, whether it lowers an NFIP premium under Risk Rating 2.0, and how to find or order one.

Related insurers

AAA - The Auto Club Group Dearborn-based AAA club whose insurers sell AAA-branded home insurance to members in 13 states; Michigan's No. 3 home insurer in 2025. Allied Trust Insurance Coastal homeowners insurer founded in 2015 and managed from Tampa that sells through independent agents in Louisiana, Texas, North Carolina and South Carolina. Neptune Flood The largest U.S. private flood insurance provider, an MGA that places primary and excess flood policies with 45 insurers and reinsurers in all 50 states.

Related disasters

Hurricane Helene (2024) Helene hit Florida's Big Bend as a Category 4 in Sept. 2024, then flooded the Appalachians. About $17.5 billion insured (Aon); most inland flood was uninsured.

Related tools

Hurricane and wildfire season insurance checklist A checklist for the insurance side of hurricane and wildfire season: what to do before the season, as a storm or fire nears, and after the event. Flood insurance coverage gap calculator See how much of your home and belongings a National Flood Insurance Program policy can cover, what is left over, and when a new policy would start.