What does community participation in the National Flood Insurance Program (NFIP) mean, and how does that affect a homeowner?

Communities (i.e., local governments) decide to participate in the NFIP. Specifically, communities that agree to manage flood hazard areas by adopting minimum regulatory standards may participate in the NFIP. These standards are listed in Section 60.3 of the NFIP regulations. Section 60.3 and other portions of the NFIP regulations may be accessed through the Guidance Documents and Other Published Resources page on the FEMA Website. If a community chooses not to participate in the NFIP, property owners in that jurisdiction are not able to purchase federally backed flood insurance. In addition, Federal grants, loans, disaster assistance, and Federal mortgage insurance are unavailable for the acquisition or construction of structures in the floodplain shown on the NFIP maps. If a community chooses not to participate in the NFIP, property owners are not subject to the Federal flood insurance purchase requirements. However, a lender is still required to inspect the effective NFIP flood ...  more