Jeffrey Wade
The Federal Emergency Management Agency (FEMA) is responsible for underwriting flood insurance coverage sold under the National Flood Insurance Program (NFIP). The NFIP is the largest single-line insurance program in the US, providing nearly $1.3 trillion in coverage against floods. FEMA also manages the NFIP, which is delivered to the public by a network of more than 47 insurance companies and the NFIP Direct. Flood insurance is a separate policy that covers buildings, the contents in a building, or both, and it is important to note that most homeowners' insurance does not cover flood damage. In the event of a flood, homeowners should contact their insurance agent or company to report their flood loss and file a claim.
| Characteristics | Values |
|---|---|
| Number of policyholders | 4.7 million |
| Total coverage | $1.3 trillion |
| Insurance type | Flood insurance |
| Insurance provider | National Flood Insurance Program (NFIP) |
| Insurance administrator | Federal Emergency Management Agency (FEMA) |
| Insurance agent | The same person who sells your home or auto insurance |
| Insurance agent's role | Help answer questions, get a quote for a policy, handle claims |
| Insurance coverage | Direct physical losses to structure and belongings, building coverage, contents coverage |
| Insurance exclusions | Earth movement exclusion |
| Insurance requirements | Prompt written notice of loss, submission of "Proof of Loss" within 60 days, photographs and videos of damage |
| Insurance claim process | Contact agent, receive inspection, document loss, receive payment |
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What You'll Learn
The National Flood Insurance Program (NFIP)
Flood insurance is a separate policy from homeowners insurance and is specific to flooding. Most homeowners insurance does not cover flood damage, and only flood insurance covers the cost of rebuilding after a flood. Flooding can happen anywhere and can be caused by poor drainage systems, summer storms, melting snow, neighborhood construction, or broken water mains. Just one inch of floodwater can cause thousands of dollars' worth of damage.
The NFIP offers two types of coverage: building coverage and contents coverage. The coverage that applies to a specific situation depends on where the policyholder lives, the type of house, the age of the home, and its construction and arrangement. The NFIP provides resources and tools to help policyholders, agents, and servicers navigate the flood insurance process before, during, and after a disaster.
Anyone living in one of the 22,600 participating NFIP communities can purchase flood insurance. Homes and businesses in high-risk flood areas with mortgages from government-backed lenders are required to have flood insurance. To purchase flood insurance, individuals can share a quote with an agent or call their insurance company. FEMA also provides an NFIP Quote Tool on its website to help individuals find the flood insurance coverage that suits their needs.
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How to file a flood claim
It is important to note that the Federal Emergency Management Agency (FEMA) does not act as your insurance agent in the case of a flood. FEMA manages the National Flood Insurance Program (NFIP), which is delivered to the public by a network of more than 47 insurance companies and the NFIP Direct. Flood insurance is a separate policy that you must purchase to cover the costs of rebuilding and recovering from a flood. Most homeowners' insurance does not cover flood damage, so it is important to have flood insurance to protect your home, business, and possessions.
Now, here is a step-by-step guide on how to file a flood claim:
Step 1: Purchase Flood Insurance
Before a flood occurs, it is important to have flood insurance in place. You can purchase flood insurance through the NFIP or private insurance companies. Visit floodsmart.gov/get-insured/flood-insurance-provider or call the NFIP at (877) 336-2627 to find a provider. There is typically a 30-day waiting period for an NFIP policy to go into effect, so plan ahead.
Step 2: Document the Damage
In the event of a flood, start documenting the damage as soon as possible. Take pictures and videos of the flood-damaged property, especially high-value items or things that may pose health risks and need to be thrown away, such as perishable food, clothing, carpets, and pillows. Also, keep important documents like birth certificates, passports, medical records, and insurance papers in a safe, dry place.
Step 3: Contact Your Insurance Agent
Report your loss immediately to your insurance agent or carrier. If you need help finding your insurance agent, you can visit the National Flood Insurance Program (NFIP) website or call them for assistance.
Step 4: Work with Your Adjuster
Your insurance adjuster will assist you in preparing a Proof of Loss, which is your sworn statement of the amount you are claiming, including necessary supporting documentation. Make sure your adjuster shows you their driver's license and Flood Control Number, which confirms their authorization to work on claims for the NFIP and your insurer. Provide them with your documentation of the flood damage, and work together to file your Proof of Loss with your insurance company within 60 days of the flood.
Step 5: Receive Your Claim Payment
After you and your insurer agree on the amount of damage and the insurer has your complete, accurate, and signed Proof of Loss, you will receive your claim payment. It can take four to eight weeks for your claim to be finalized and paid. Remember that if you have a mortgage, the claim check will be written to you and your mortgage company.
By following these steps and staying organized and proactive, you can effectively navigate the flood claim process and receive the financial assistance you need to recover from a flood.
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FEMA flood risk maps
The Federal Emergency Management Agency (FEMA) maps locations that are at high risk of flooding, determining which homeowners must purchase flood insurance. These maps are created under the National Flood Insurance Program (NFIP) and can be found on the FEMA Flood Map Service Centre (MSC), the official online location.
FEMA provides technology and relies on local knowledge from community leaders to make the maps as accurate as possible. However, in July 2021, it was reported that FEMA's maps may not reflect current flood risks. This means that some homeowners in areas where flooding can occur may underestimate their flood risk and choose not to purchase flood insurance.
The NFIP is the nation's largest single-line insurance program, providing nearly $1.3 trillion in coverage against floods. It is managed by FEMA and delivered to the public by a network of more than 47 insurance companies and the NFIP Direct. The NFIP provides flood insurance to property owners, renters, and businesses, helping them recover faster when floodwaters recede. It offers two types of coverage: building coverage and contents coverage.
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Flood insurance costs
The National Flood Insurance Program (NFIP) is managed by FEMA and delivered by a network of more than 47 insurance companies and the NFIP Direct. The NFIP offers flood insurance to property owners, renters, and businesses, and this coverage helps them recover faster when floodwaters recede.
The average cost of flood insurance is about $899 per year nationwide, or $75 per month. This figure is based on the 2025 National Flood Insurance Program rates and does not include private flood insurance policies from companies that are not backed by the NFIP. Flood insurance for renters can be much cheaper if you only need to cover your personal belongings.
The cost of flood insurance depends on several factors, including the size, location, and elevation of the house. The National Flood Insurance Program (NFIP) uses a unique combination of rating variables for each property to reflect its flood risk. The previous methodology set rates based on geographic zones and elevation. However, NFIP's pricing approach now uses the best available flood risk data to set premiums based on each property's individual risk. This includes factors such as the likelihood of different types of flooding, the characteristics of the building, elevation and distance from flood sources, and the replacement cost value of the building.
In October 2021, FEMA began using an approach called Risk Rating 2.0 to set flood insurance rates. FEMA now includes extra variables such as flood frequency and rebuilding cost when evaluating each home’s chance of flooding. The methodology aims to set prices that more accurately reflect each individual property's flood risk. Under FEMA's current rating system, some policyholders may experience an increase in their flood insurance rates of up to 18% annually for several years. However, federal law typically prevents premiums from increasing by more than 18% in a year, with some exceptions.
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Private insurance companies and the NFIP
The National Flood Insurance Program (NFIP) is managed by the Federal Emergency Management Agency (FEMA) and delivered to the public by a network of more than 47 insurance companies and the NFIP Direct. The NFIP provides flood insurance to property owners, renters, and businesses, and this coverage helps them recover faster when floodwaters recede.
The NFIP was established in 1968 with the passage of the National Flood Insurance Act (NFIA) to fill the gap in flood insurance coverage. Flood insurance covers losses directly caused by flooding, and most homeowners' insurance does not cover flood damage. The NFIP offers two types of coverage: building coverage and contents coverage. The cost of an NFIP policy depends on whether your home is in a high-, medium-, or low-risk flood zone, proximity to bodies of water, elevation, and coverage limits.
Private flood insurance is provided and backed by private insurers, either in addition to or instead of the traditional NFIP plan. Private flood insurance has become an increasingly popular alternative to the NFIP due to its often lower cost, higher limits of protection, and availability of additional coverages. Private flood insurance policies also typically include coverage for additional living expenses to cover temporary expenses like hotel stays and restaurant meals if you're unable to live in your home after a flood. However, not all private flood insurance providers offer the same coverages and limits, and it is important to check with your insurance company or agent to find out what options are available to you.
FEMA designed and launched the Write Your Own (WYO) Program in 1983 so that private insurance companies could help FEMA write and service flood insurance policies. More than 47 private insurance companies participate in the WYO program each year, selling and servicing NFIP policies through their insurance agents.
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Frequently asked questions
The NFIP is a program that provides insurance to help reduce the socio-economic impact of floods. It is managed by FEMA and delivered to the public by a network of more than 47 insurance companies and the NFIP Direct.
You can share a quote with an agent near you or call your insurance company or agent. If you need help finding a provider, go to Floodsmart.gov or call the NFIP at (877) 336-2627.
Contact your insurance agent or company to report your flood loss. Your flood insurance policy requires you to give prompt written notice of your loss. Generally, your adjuster will contact you within 24-48 hours.
FEMA administers the NFIP and retains responsibility for underwriting flood insurance coverage sold under the program and by the NFIP Direct. FEMA also provides resources to help policyholders, agents, and servicers navigate the flood insurance process before, during, and after a disaster.
