National Flood Insurance Program (NFIP)

The National Flood Insurance Program (www.fema.gov/business/nfip   ) (NFIP) was created by the Congress of the United States in 1968 through the National Flood Insurance Act of 1968 (P.L. 90-448).  The NFIP is administered by FEMA; the Department is the coordinating state agency.

The NFIP allows property owners in participating communities (AZ CSL    ) to purchase government-sponsored and regulated flood insurance.  When local communities voluntarily join and participate in the NFIP, they agree to adopt and enforce a floodplain management ordinance to reduce future flood risks in Special Flood Hazard Areas (SFHA).  The federal government, in turn, makes flood insurance available to property owners within the community as a financial protection against flood losses. The SFHAs and other risk premium zones applicable to each participating community are depicted on Flood Insurance Rate Maps (FIRMs).  More information is available in the “Answers to Questions About the NFIP” booklet  .