Insurance

• Affordable flood insurance is available to communities that participate in the National Flood Insurance Program, which is managed by The Federal Emergency Management Agency. Participation in the NFIP is voluntary. In order to participate, communities must agree to practice sound floodplain management. In exchange, the NFIP offers affordable, federally backed flood insurance and works in partnership with the community to mitigate flood risk.
  
  

Flood Zones

• As part of the program, FEMA classifies all areas of the community into flood-zones, based on risk. To make zone determinations, FEMA conducts in-depth studies on local hydrology, and looks at historical flood data. There are three zones: high-risk, low-moderate risk and undetermined risk. High-risk zones have a 1 percent or greater chance of flooding in a given year; low-moderate risk zones have a less than one percent chance, and the risk is unknown in undetermined risk zones.
  
  

Requirements

• The only homeowners who are required to purchase flood insurance are those who live in the high-risk zone, and purchase their home with a federally insured mortgage. Flood insurance is recommended, but not required for all other properties. If a community does not participate in the NFIP, then affordable insurance is not provided. If you want your community to participate, you have to petition your local government.
  
  

Participation

• According to FEMA rules, participating communities are required to adopt and enforce a floodplain management ordinance the meets or exceeds requirements specified under section 60.3 of the Code of Federal Regulations. FEMA monitors compliance through an audit process called the community assistance visit. There are ramifications if a community does not abide by the regulations. A non-complaint community will not be able to purchase insurance through the NFIP, nor will they be eligible for post-disaster financial assistance.