National Flood Insurance Program
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Since floods are risks of loss seldom covered by typical property insurance policies, the U.S. Congress stepped in and created the National Flood Insurance Program, which is a separate flood insurance policy necessary to protect against the risk of loss by flood.
The National Flood Insurance Act of 1968 created the National Flood Insurance Program (“NFIP”) to provide affordable flood insurance on fair terms. Spong v. Fidelity Nat’l Prop. & Cas. Ins. Co., 787 F.3d 296, 304 (5th Cir.2015).
FEMA is the federal agency that implements the National Flood Insurance Program (“NFIP”), a federal program that enables property owners in participating communities to purchase insurance protection, administered by the government, against losses from flooding. In order to participate in the NFIP, communities are required to adopt and enforce floodplain management ordinances to reduce future flood damage. Through this program FEMA has created maps, known as FIRMs, which delineate the boundaries within a community of flood hazard areas. The FIRMs are divided into insurance risk zones according to the likelihood of a flood occurring within a particular region.
The federal treasury ultimately makes payments on flood insurance claims. (Gowland v. Aetna, 143 F.3d 951, 954 (5th Cir.1998)). The flood insurance claim process requires the insured to notify the insurer of the loss and submit a complete signed and sworn proof of loss setting out the nature, cause, and value of the loss. Failure to comply with the letter of the law and the flood insurance policy deprives the insured of the right to receive indemnity to recover from flood damage.
© 2021 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and email@example.com.
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Over the last 53 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.
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