Insurance offered by private companies and subsidized by the federal government, designed to provide coverage from floods or tidal waves. Primary and secondary lending institutions regulated by the federal government require flood insurance or any financed property located with certain flood-prone areas identified by the Federal Management Agency (FEMA)
The most common flood insurance is offered through the federally regulated program known as the
National Flood Insurance Program (NFIP).
It has two policies:
One that covers your actual home (building property) up to $250,000
One that covers your personal property up to $100,000
You can buy one or both.
