The National Flood Insurance Program (NFIP) is administered by FEMA and sold through a network of Write-Your-Own carriers and direct agents. It is the largest single source of residential flood coverage in the US, with roughly 4.7 million policies in force. Pricing moved to Risk Rating 2.0 in 2021, which prices each address individually instead of by flood zone alone.
NFIP coverage limits at a glance
| Occupancy | Building Limit | Contents Limit | ALE / Loss of Use |
|---|
| Single-family residence | $250,000 | $100,000 | Not covered |
| Other residential (2–4 unit) | $250,000 | $100,000 | Not covered |
| Residential condo association (RCBAP) | $250,000 × units | $100,000 | Not covered |
| Non-residential / commercial | $500,000 | $500,000 | Not covered |
| Renter | n/a | $100,000 | Not covered |
Risk Rating 2.0 — what actually drives your premium
| Rating Variable | Why It Matters |
|---|
| Distance to coast, river, or flooding source | Closer = higher |
| Flood frequency (multiple flood types modeled) | Replaces single-zone pricing |
| First-floor height above ground | Elevation lowers premium meaningfully |
| Building replacement cost | Higher RCV = higher premium |
| Foundation type (slab, crawlspace, pier, basement) | Basements price highest |
| Construction (number of floors, machinery location) | Equipment above BFE lowers cost |
Waiting periods and exceptions
| Situation | Waiting Period |
|---|
| New policy purchase (most cases) | 30 days |
| Loan-closing requirement | None (effective at closing) |
| Map revision moved you into SFHA in the last 13 months | 1 day |
| Post-wildfire flood on federal land | No 30-day wait in certain cases |
Agents can also quote private flood alongside NFIP — many private programs beat NFIP price after Risk Rating 2.0, especially on slab homes outside the SFHA.
