FLOOD INSURANCE
Flood insurance does not stop flood losses; instead, it changes how flood losses are reimbursed. The Federal Emergency Management Agency (FEMA), through private insurance companies and with assistance from the states, operates the National Flood Insurance Program (NFIP). Through this program, any property owner, even those living outside of the 100-year flood plain, may purchase flood insurance on their structure and personal property. To be eligible, an individual's community must first adopt a flood plain ordinance which conforms to FEMA's specifications (view the list of communities, by state, participating in the NFIP on the FEMA web site).
The NFIP supports itself on the premiums paid by the policy holders. For owners of property within a 100-year flood plain, the NFIP is the only way they may purchase flood insurance. However, in spite of its availability, many flood plain residents do not purchase flood insurance.
Over the years, FEMA has incorporated incentives for better flood plain management into the flood insurance program. For example, the Community Rating System offers discounts of up to 50% on flood insurance premiums if communities undertake a proactive flood loss reduction program. Actions include adopting stringent flood plain management regulations and developing flood plain acquisition and flood proofing programs, including elevation of flood plain structures. Despite the availability of flood insurance and the incentives for better flood plain management, federal disaster assistance is still requested after serious flooding.
OTHER HELPFUL LINKS:
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Voice
(609) 883 - 9500 FAX
(609) 883 - 9522 
clarke.rupert@drbc.state.nj.us
