The National Flood Insurance Program (NFIP) was created by Congress in 1968 to make flood insurance available to property owners in flood-prone communities. NFIP requires local governments to adopt and enforce floodplain regulations before their residents can purchase floodplain insurance.
The NFIP and Clark County’s Flood Hazard Area code provide an alternative to traditional flood control. These regulations acknowledge our community’s land use needs and guide development to allow floodwaters to move naturally.
Membership within NFIP — and the availability to county residents of flood insurance — requires the county to manage its floodplain in ways that meet or exceed standards set by FEMA.
Since Clark County participates in the National Flood Insurance Program (NFIP) federally backed flood insurance is available for all structures, whether or not they are located within the floodplain. Be aware that standard property insurance does not cover flooding.
More than 25 percent of NFIP claims are filed by properties located outside the 100-year floodplain, also known as the Special Flood Hazard Area (SFHA). Are you in the SFHA? You can check here.
Federal financial assistance requires the purchase of flood insurance for buildings located within the SFHA — a requirement that affects nearly all mortgages financed through commercial lenders.
While the mandatory flood insurance purchase requirement has been in effect for many years, not all lenders required flood insurance in the past. Today, however, most lenders are now requiring flood insurance. When refinancing a loan, nearly all lending institutions will enforce the flood insurance requirement. It is the lender’s responsibility to check the Flood Insurance Rate Map (FIRM) to determine whether a structure is within the SFHA.
With the flood season that the Northwest encounters every year it is very important that you protect your most important asset, your property. There is a 26 percent chance of experiencing a flood during the life of a 30-year mortgage.
NFIP insures buildings with two types of coverage: structural and contents. Structural coverage includes walls, floors, insulation, furnace and other items permanently attached to the structure.
Contents coverage may be purchased separately to cover the contents of an insurable building. Flood insurance also pays a portion of the costs of actions taken to prevent flood damage.
Following the purchase of flood insurance, NFIP imposes a 30-day waiting period, so residents should purchase insurance before the onset of the rainy season to ensure coverage during a flood.
Contact your homeowner’s insurance agent for more information on the National Flood Insurance Program. You may also contact the NFIP at (888) CALL-FLOOD, ext. 314.
