The National Flood Insurance Program [NFIP] Law and Legal Definition

The national flood insurance program facilitates in providing insurance against damages caused to properties due to flooding. NFIP is created by the Congress of the U.S. in 1968. The Director of the Federal Emergency Management Agency is authorized to establish and carry out a national flood insurance program which will enable interested persons to purchase insurance against loss resulting from physical damage to or loss of real property or personal property arising from any flood occurring in the U.S.

According to the federal statute 42 USCS § 4012, the director determines that it would be feasible to extend the flood insurance program to cover other properties, he may take such action under this title as from time to time may be necessary in order to make flood insurance available to cover, on such basis as may be feasible, any types and classes of:

1. other residential properties,

2.other business properties,

3. agricultural properties,

4.properties occupied by private nonprofit organizations, and

5. properties owned by State and local governments and agencies