The National Flood Insurance Act of 1968 was passed to make federally subsidized flood insurance available to those who own improved real estate or mobile homes located in a special flood hazard area (SFHA). The Flood Disaster Protection Act of 1973 was passed to require federally-regulated financial institutions that make, increase, renew, or extend loans secured by improved real estate or mobile homes located in a SFHA to be covered by flood insurance if the community participates in the National Flood Insurance Program (NFIP). Flood insurance may be obtained through the NFIP or a private insurer.
The flood insurance requirements have been amended several times including most recently the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act) and the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA). These amendments made changes to force-placed flood insurance, escrowing of flood insurance, exemption for detached structures, and civil money penalties for non-compliance. The most recent change is the Private Flood Insurance Final Rule that is effective July 1, 2019. The rule requires financial institutions to accept private insurance policies that meet certain requirements and allows financial institutions discretion to determine whether they will accept private insurance policies that do not meet the statutory requirements.
External Flood Resources:
- Private Flood Insurance Final Rule
- NFIP Flood Insurance Agent’s Manual
- FEMA Map Service Center
- Your federal regulator’s website:
- FDIC: https://www.fdic.gov/regulations/laws/
- OCC: https://www.occ.gov/topics/consumer-protection/flood-disaster-protection/index-flood-disaster-protection.html
- Federal Reserve: https://www.federalreserve.gov/
- NCUA: https://www.ncua.gov/regulation-supervision/regulatory-compliance-resources/consumer-compliance-regulatory-resources/flood-insurance-resources
BCC Flood Resources: