National Flood Insurance Program (NFIP)
Definition
A federal program administered by FEMA that provides flood insurance to property owners, renters, and businesses in participating communities. The NFIP sets flood zone designations, establishes building standards, and offers flood insurance policies with coverage up to $250,000 for residential buildings and $100,000 for contents.
When This Matters
Your home is in a Special Flood Hazard Area. Your mortgage lender requires you to purchase flood insurance through the NFIP or a private flood insurer.
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