National Flood Insurance Program (NFIP)

The National Flood Insurance Program (NFIP) is a U.S. government program designed to provide flood insurance to property owners, renters, and businesses. Established in 1968, it aims to reduce the economic impact of flooding by encouraging communities to adopt floodplain management practices. In exchange for affordable flood insurance, communities must comply with regulations that minimize flood risks. NFIP offers policies for building and contents, helping individuals recover financially after flood damage. It operates on the principle that most private insurers cannot afford to cover flood risks adequately, thus requiring government involvement to provide protection and promote preparedness.