Flood Insurance markets
National Flood Insurance Program
National Flood Insurance Program
National Flood Insurance Program
- The NFIP is a federal program managed by FEMA (Federal Emergency Management Administration)
- It is responsible for mapping flood zones and providing flood insurance, regardless of the level of risk.
- Flood insurance through the NFIP can generally be purchased by agents who are appointed to sell flood insurance.
Private Flood Insurance Markets
National Flood Insurance Program
National Flood Insurance Program
- The Flood Insurance Market Parity and Modernization Act was introduced to allow for the development of the private flood market.
- Mapping has become more sophisticated and the risk of the flood has become more calculated; this allows for more accurate pricing to insure the risk of a flood.
- Private markets are allowed to be exclusive; they do not have to insure a ‘bad’ risk.
- The creation of a private market for flood insurance gives consumers more choices to properly insure their property.