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Natural calamities result in damages to human life as well as physical property and livelihood. The Federal Emergency Management Agency (FEMA) instituted the National Flood Insurance Program in 1968 to aid homeowners when private insurance companies failed to endorse flood insurance covers due to the incurrence of huge losses and the absence of profitability.

According to the FEMA policies, homeowners who reside within one of the listed 22,000 neighborhoods identified as flood risk areas can apply for this insurance cover directly to the government or through their insurance agents. Usually, the owners in high-risk areas are required to purchase the insurance cover mandatorily, those in areas of medium risk are offered this flood insurance policy as an option. FEMA offers these flood insurances with subsidized premium rates depending on the geographic location and construction features.

Some of the questions that can help a homeowner understand the significance of FEMA’s flood insurance offering are as follows:

• Is your community a part of the National Flood Insurance program offered by FEMA?
• Are you living on one of the listed flood zones? Does your property face the potential risk of flooding?
• Do you mandatorily require the flood insurance for your property? If so, can your lender secure the insurance?
• Are you eligible for the Preferred Risk Policy?
• Is your community a part of the Community Rating System (CRS) provided by the National Flood Insurance Program? If it is eligible, do you get a CRS discount for your specific property?
• What are the covered articles? How does FEMA back this flood insurance policy?
• Does the policy cover the replacement cost of the property or the actual cost of the property? What is the claim process?

While the eligibility for insurance depends on whether you are a part of the program, there are many communities that just participate to aid. In order to check the status of your community, simply check the status through either your local insurance agent or check the log provided on the FEMA website.