National Flood Insurance Program
The 1968 federal program that maps flood hazard, sets community standards, and sells flood insurance.
Overview
Administered by FEMA, it admits communities that adopt floodplain ordinances and lets their residents buy policies, today over 4.5 million, with residential caps of 250,000 dollars for buildings and 100,000 for contents. Repeated borrowing after storms such as Katrina and Sandy left the program roughly 20 billion dollars in debt even after congressional forgiveness, and short term extensions have passed dozens of times. Risk Rating 2.0, phased from 2021, prices by property specific factors such as replacement cost and distance to water rather than zone alone, raising many premiums on a glide path. Private market growth now supplements the program at higher limits.
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