NFIP or National Flood Insurance Program is an insurance plan offered by the Government since 1968. It was created as an alternative assistance for homes located in flood prone areas. The NFIP is currently under FEMA (Federal Emergency Management Agency). Home owners and landlords can directly transact with NFIP instead of selecting flood insurance from a privately owned insurance company.

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Qualifications for NFIP Insurance

Although everyone need flood insurance, not everyone is be qualified for NFIP insurance.  To obtain NFIP, you need to be located in an area which is classified as SFHA (Special Flood Hazard Area)  the FEMA.   Before declaring an area as SFHA, NFIP  will present its findings to the local community and waits for the response of the people.

Some will not agree to this declaration by NFIP since it will greatly affect the real estate market in that area. Almost any roofed home can be insured by NFIP, even the mobile homes, as long as it has foundations.

But usually, home owners will agree to the declaration of NFIP since it will not only qualify them for the NFIP insurance plan but the community will also gain special attention from the government in case flood happens. FEMA has already outlined specific SFHA and they know where to look and provide assistance as soon as possible.

There is a catch for NFIP insurance. Before it can be fully qualified for insurance, certain changes may need to be made in the houses or apartments. These are usually flood control changes that should minimize the effects of flood and foster safety to those who inhabit them. An inspector (usually an insurance agent) will visit the area and evaluate if it is worthy to be insured by NFIP.

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Applying for NFIP Insurance

Usually NFIP will send an inspector to check if your house has been secured against flood and built according to their terms.

Since most of the insurance application in SFHA area is still building, the coverage can be obtained through the contractor or builder. The builder will contact the NFIP for assistance especially in ensuring that the building is built according to NFIP specifications. Usually, the NFIP will check the structure’s elevation and materials to ensure that it has been built according to specifications. Additional insurance maybe obtained by the home owner but these are usually geared towards protection of properties inside the structure.

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When the Worst Happens

NFIP and FEMA evaluate the area to assess the damages when disaster strikes. The home owner should contact NFIP as soon as possible (no less than 60 days) to obtain assistance fast. There is usually a waiting period of 30 days but this is usually accelerated if there is total damage to the property. NFIP will immediately coordinate with the home owners so that compensation could be obtained as soon as possible.