National Flood Insurance Program

Flood Insurance Requirements for Recipients of Federal Disaster Assistance 

When property owners receive financial assistance from the Federal Government following 
a Presidentially declared disaster, they may be required to purchase flood insurance 
coverage. This requirement is mandated under the National Flood Insurance Reform Act 
(NFIRA) of 1994.  It is imposed when a building has been damaged and is located in an area 
that is at high risk of flooding. These high-risk areas are called Special Flood Hazard Areas 
(SFHAs).

 Flood Insurance Requirements for Recipients of Federal Disaster Assistance 
If you are a homeowner and receive Federal financial assistance, flood insurance coverage 
must be maintained at the address of your home even if the damaged building is replaced 
by a new one. If you sell your home, you are required to inform the new owner that they 
must maintain flood insurance coverage on the building. Often, an existing flood insurance 
policy can be transferred to a new owner with no lapse in coverage.

If you are a renter and receive Federal financial assistance, flood insurance coverage must be 
maintained on the contents for as long as you live at the flood-damaged rental property. The 
requirement for flood insurance is lifted once you move from the building.
If you receive a Certificate of Flood Insurance from FEMA, flood insurance has been provided 
under a Group Flood Insurance Policy following a Presidential disaster declaration. This 
policy provides minimum building and/or contents coverage in exchange for a small 
premium. 
			Group Policies have a term of 3 years, after which you will be required to purchase and 
maintain a Standard Flood Insurance Policy through the National Flood Insurance Program 
(NFIP) until you are no longer the homeowner or renter at that location. In order to avoid any 
lapse in coverage, it is important to apply for your new coverage at least 30 days before the 
expiration of the Group Policy. 
			You may cancel your participation in the Group Policy at any time during its policy term, 
provided that you have purchased your own NFIP flood insurance coverage.
Even without the NFIRA requirement, it is a wise decision to purchase flood insurance. But, because 
Federal law mandates the purchase of flood insurance as a condition of disaster funding, an applicant 
who does not comply with the NFIRA flood insurance obligation may become ineligible for future 
disaster assistance. It’s that important. 

With all that you are going through, don’t let this vital coverage slip through the cracks. Protect 
yourself and your family from future financial loss. Purchase and maintain flood insurance coverage.
For more information about the 
NFIP and flood insurance, call   
1-800-427-4661, 
or contact your 
insurance company or agent.

For an agent referral, call  
1-888-435-6637
TDD 1-800-427-5593
http://www.fema.gov/business/nfip 
http://www.floodsmart.gov
F-695	07/07