What is the purpose of the National Flood Insurance Program (NFIP)?

The National Flood Insurance Program (NFIP) is designed primarily to provide flood insurance to homeowners in flood-prone areas, making it attainable for property owners who might otherwise find it difficult to secure coverage through the private insurance market. The program aims to reduce the financial impact of flooding on communities by enabling residents to purchase insurance against flood damage, thus promoting recovery and resilience after flood events.

In addition to offering flood insurance, NFIP also encourages communities to engage in floodplain management practices to minimize flood risk, thereby making areas safer and less at risk for future flooding. However, the primary focus remains on the provision of insurance coverage tailored to the unique risks associated with flooding, which is inherently excluded from standard property insurance policies.