National Flood Insurance Program The National Flood Insurance Program (NFIP) affords homeowners, renters or business owners the opportunity to purchase flood insurance when their municipality agrees to enact and enforce regulations that meet or exceed FEMA’s floodplain requirements. This insurance is designed to provide an insurance alternative to disaster assistance to reduce the escalating costs of repairing damage to buildings and their contents caused by floods. Types of Flood Risk Areas Property Owners in High-Risk Areas (A or V Flood Zones) Homes and buildings in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. In high-risk areas, there is at least a 25% chance of flooding during a 30-year mortgage. Property Owners in Moderate-to-Low Risk Areas (X Flood Zones) Homes and businesses located in moderate-to-low risk areas that have mortgages from federally regulated or insured lenders are typically not required to have flood insurance. Even though flood insurance isn't federally required, anyone can be financially vulnerable to floods. In fact, people outside of mapped high-risk flood areas file over 20% of all National Flood Insurance Program flood insurance claims and receive one-third of Federal Disaster Assistance for flooding. Introduction to the National Flood Insurance Program from Rhode Island Emergency Management Agency Additional Resources Floodsmart Intro to the NFIP – ISU Video Videos for Floodplain Professionals & Local Officials StormTools