General Program and Mapping Questions

What is the National Flood Insurance Program?

The National Flood Insurance Program (NFIP), established with the passage of the National Flood Insurance Act of 1968 and subsequently broadened and modified through other legislative measures, is a Federal program that enables property owners to purchase flood insurance. It is designed to reduce the escalating costs of property damage caused by floods. The program is based on an agreement between local communities and the Federal Government that if a community will implement programs to reduce future flood risks, the Federal Government will make flood insurance available within the community as a financial protection against flood losses that occur. The NFIP is administered by the Federal Emergency Management Agency (FEMA). Today, over 20,000 communities participate in the NFIP.

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What are the benefits of the National Flood Insurance Program?

The National Flood Insurance Program (NFIP) enables property owners in participating communities to insure themselves against flood losses. The NFIP mandatory flood insurance purchase requirements protect the financial interests of the lender, the borrower, and the taxpayer. Insurance coverage reduces reliance on Federal disaster assistance and also reduces the number of income tax write-offs for flood-damaged residences secured by uninsured loans. By employing wise floodplain management, a participating community can minimize the extent of the area requiring the mandatory purchase of flood insurance and protect its citizens from much of the devastating financial loss resulting from flood disasters. Careful local management of floodplain development results in construction practices that can reduce flood losses and the high costs associated with flood disasters.

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Why is purchasing flood insurance important to homeowners?

Considering the devastating consequences flooding can have, flood insurance is a wise and important investment. Homeowners insurance does not cover losses caused by flooding, but flood insurance provides coverage even if a disaster is not declared by the President. Even if FEMA determines a structure is not in the designated floodplain, referred to as the Special Flood Hazard Area (SFHA), the structure could be flooded by a flooding event with a greater magnitude than the base (1-percent-annual-chance) flood. Our estimates indicate that structures in designated SFHAs have a one-in-four chance of suffering flood damage during the term of a 30-year mortgage. The risk to structures located outside SFHAs is just not as great as the risk to structures located in SFHAs.

In addition, when homes are destroyed by floods, not only are the homeowners left without a place to live, but they are still obligated to pay off their mortgages. Flood insurance coverage is beneficial in that it protects the equity built up in a person's property, covers damage from flooding, and helps the insured recover more quickly and completely after a flood disaster.

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When did the City of Sacramento first join the National Flood Insurance Program? Is the city still participating in the Program?

The City of Sacramento first joined the National Flood Insurance Program (NFIP) in March 1972. Since September 1978, the City has been participating under the Regular Phase of the NFIP.

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How will the new map affect citizens of Sacramento?

The new map, effective on February, 18, 2005, has the following effects:

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Will flood insurance be required for the structures that are located in the designated floodplain?

The purchase of flood insurance is mandatory as a condition of Federal or federally related financial assistance for the acquisition and/or construction of buildings in floodplains designated on the FEMA flood map.

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Last Modified: Wednesday, 24-May-2006 17:38:06 EDT