Historic storms in the Gulf of Mexico, such as Harvey, Irma, and Maria, have emphasized the importance of homeowners securing flood insurance through the National Flood Insurance Program (NFIP).
The NFIP makes federally backed flood insurance available for all buildings, whether they are in the floodplain or not. Flood insurance covers direct losses caused by surface flooding, including a river flowing over its banks, a lake or ocean storm, and drainage problems.
The NFIP insures buildings, including mobile homes, with two types of coverage: structural and contents. Structural coverage is for the walls, floors, insulation, furnace, and other items permanently attached to the structure. Contents coverage may be purchased separately, provided the contents are in an insurable building.
Mandatory Purchase Requirements: The mandatory purchase requirement applies to all forms of federal or federally related financial assistance for buildings located in a Special Flood Hazard Area (SFHA). This requirement affects loans and grants for the purchase, construction, repair, or improvement of any publicly or privately owned building in the SFHA, including machinery, equipment, fixtures, and furnishings contained in such buildings.
How it Works: Before a person can receive a loan or other financial assistance from one of the affected agencies or lenders, it must be verified that the building is in a Special Flood Hazard Area (SFHA). The SFHA is the base (100-year) floodplain mapped on a Flood Insurance Rate Map (FIRM). It is shown as one or more zones that begin with the letter "A" or "V.”