National Flood Insurance Program
The National Flood Insurance Program (NFIP) is comprised of three divisions: Flood Insurance, Floodplain Management, and Flood Hazard Mapping.
The National Flood Insurance Program serves to reduce future flood losses by assisting its participating members in the adoption and enforcement of floodplain management ordinances. Presently, nearly 20,000 communities in the United States and its territories participate in the program. This community participation is voluntary. Homeowners, renters, and businesses located in participating communities are offered federally backed flood insurance. For more information on annual flood insurance premiums, click here.
The program exists to provide an alternative to disaster assistance. By implementing sound floodplain management, it is estimated that communities participating in the NFIP reduce flood damage by $1 billion annually. Additionally, structures constructed in compliance with NFIP building standards are estimated to suffer 80 percent less annual damage than those buildings not in compliance. 
In addition to providing flood insurance, the NFIP identifies and maps the nation's floodplains. This effort creates a broad public awareness of the flood hazards, while providing the foundation for sound floodplain management plans and insurance rate calculation.