The purpose of this page is to define suspension, a commonly used term in floodplain management.
The National Flood Insurance Act of 1968 prohibits FEMA from providing flood insurance in a community unless the community adopts and enforces floodplain management regulations that meet or exceed minimum NFIP criteria. A community can be suspended from the NFIP for failure to adopt compliant floodplain management measures or if it repeals or amends previously compliant floodplain management measures. A community can also be suspended from the NFIP for failure to enforce its floodplain management regulations.
New flood insurance coverage cannot be purchased and policies cannot be renewed in a suspended community. In addition, three-year policies become void at the end of the current policy year with a pro rata refund given for any remaining years of the original three-year policy term.
National Flood Insurance Program (NFIP) Requirement
- (a) Suspension for Failure to Adopt Regulations
- (c) - Suspension for Failure to Enforce Regulations
- IS-9 Managing Floodplain Development Through The National Flood Insurance Program (NFIP) (page 2-15)
Supplemental Information for Suspension
A community that does not join the NFIP, has withdrawn from the program, or is suspended from it, faces the following sanctions:
- No resident will be able to purchase a flood insurance policy.
- Existing flood insurance policies will not be renewed.
- No Federal grants or loans for development may be made in identified flood hazard areas under programs administered by Federal agencies such as HUD, EPA, and SBA;
- No Federal disaster assistance may be provided to repair insurable buildings located in identified flood hazard areas for damage caused by a flood.
- No Federal mortgage insurance or loan guarantees may be provided in identified flood hazard areas. This includes policies written by FHA, VA, and others.
- Federally insured or regulated lending institutions, such as banks and credit unions, must notify applicants seeking loans for insurable buildings in flood hazard areas that there is a flood hazard and that the property is not eligible for Federal disaster relief.