How to Understand Nationwide Flood Insurance

Nationwide flood insurance changed in 1968 with the enactment of the National Flood Insurance Act by Congress. The intent of the act was to assist property owners in flood-prone area by subsidizing the cost of flood insurance, and taking measures to help prevent flooding by better land management of flood plain areas. To better understand nationwide flood insurance and how it may impact you and your property, continue reading the following steps.

Difficulty: Moderately Easy

Instructions

1. Take note, this article is about flood insurance nationwide, it is not about the insurance company whose name is “Nationwide”.

2. Understand the Federal Emergency Management Agency (FEMA) is the federal agency that administers the flood program. This is the first step in understanding nationwide flood insurance.

3. Appreciate that the Army Corps of Engineers is the agency that has identified flood areas across the country, and has prepared maps showing the flood-prone regions. This is the second step in understanding nationwide flood insurance.

4. Acknowledge you must obtain flood insurance if you have a federally related mortgage, and the property is located in one of the regions identified by the Army Corps of Engineers. . This is the third step in understanding nationwide flood insurance.

5. Understand that flood insurance can be purchased from the National Insurance Flood Insurance Program, a licensed property insurance broker, or the state’s designated servicing company. This is the next step in understanding nationwide flood insurance.

6. Take note of the fact that exemptions can be made, where the borrower would not have to purchase flood insurance. If the lowest part of the building is above the 100 year flood mark, and the fact is proven by a survey, a borrower can be exempt from purchasing flood insurance, even if they are in a flood prone region. This is the fifth step in understanding nationwide flood insurance.

Tips & Warnings

• When exploring nationwide flood insurance understand some areas do not qualify for flood insurance.

[Mitestarossa]

on 3/2/2009 Good article.