Function Of National Flood Insurance Program (NFIP)

The National Flood Insurance Program (NFIP) was started by the Congress with an aims is to increasing cost in disaster relief operation for flood affected people. The FEMA oversees the NFIP (which is a part of DHS). The FEMA is also parallel run the "Write Your Own" (WYO) Program where the private insurance companies get authority to write and service the standard federal flood insurance policy under their own names.

In any flood insurance policy, the coverage and rates does not varies. FEMA gives funds to WYO companies to pay claim. NFIP monitor these companies through audit to make sure that it can handle it properly. The function or how claim for flood insurance perform is mentioned below:

1. Local area group apply for the National Flood Insurance Program (NFIP) to qualify for flood insurance, once NFIP received notifications from FEMA regarding new Special Flood Hazard Areas. The application includes accepted agreements to start new work in SFHAs.

2. FEMA permits to sale the flood insurance under the crises program limit. Some time if necessary, FEMA estimate the risk and expected development.

3. FEMA perform the study to decide the flood levels and risk zones. The area that has no major risk is converted into Regular Program and no study require for such program.

4. FEMA give Flood Insurance Rate Map, which gives information about the flood level, and risk zones. FEMA has given time to local bodies to takeover flood level in area and building code regulation to meet the needs.

The National Flood Insurance Program has greater role to play with FEMA to manage the flood program.