A Brief History of the NFIP
The story behind the National Flood Insurance Program (NFIP) starts well before its formation and speaks to a universal truth–we all deserve the reassurance that our homes, lives and businesses won’t be swept away by a flood. The NFIP was formed in response to a growing need for flood insurance, which often was either unavailable or unaffordable on the private insurance market.
Recognition that flooding was a problem for the nation goes back as early as 1913, when a major flood in the Ohio River Valley took the lives of more than 400 people and caused over $200m of property damage. The nation once again saw the power of floods in 1927, when the Mississippi River flooded, causing over $236m of damage and displacing more than 700,000 people. Disasters on such large scales aligned people and policymakers to push for a government entity solely devoted to assisting and strengthening community resilience against floods.
Created by Congress as part of the National Flood Insurance Act of 1968, the NFIP was launched with two primary goals: reducing future flood damage and protecting property owners. To these ends, the NFIP has stood firm for more than 50 years, helping Americans from all walks of life protect the lives they’ve built with flood insurance.
Flash forward to today, and when people think of flooding, they think of Hurricanes Katrina, Harvey, Sandy, or Maria. The flooding caused by each of those storms caused billions of dollars of damage, leaving many communities and families stuck with exorbitant costs to rebuild. FEMA and the NFIP are constantly working to build a culture of preparedness across the nation and close the insurance gap.
Flood insurance is the tool that helps people rebuild after a flood and can mean all the difference in a person’s life. If you’re new to selling flood insurance, the NFIP has guides to help you get started. Insurance agents of all backgrounds can find valuable training webinars and outreach resources to help sell flood insurance.
Learn more by visiting https://www.floodsmart.gov/historical-nfip-claims-information-and-trends
