Gateway/National Flood Insurance Program (NFIP)
National Flood Insurance Program (NFIP)
The federal program that sells most U.S. flood insurance: what it covers, the waiting period, and the basement limits that surprise St. Louis homeowners.
| Created | National Flood Insurance Act of 1968 |
|---|---|
| Run by | FEMA (Federal Emergency Management Agency) |
| Residential limits | Up to $250,000 building, $100,000 contents |
| Waiting period | Usually 30 days after purchase |
What it is
The National Flood Insurance Program (NFIP) was created by the National Flood Insurance Act of 1968 and is managed by the Federal Emergency Management Agency (FEMA). It provides flood insurance to property owners in communities that agree to adopt floodplain management rules, and it sells policies through private insurance companies and directly. Standard homeowners policies do not cover flood, so NFIP or private flood insurance is the only way most households are covered. See flood insurance.
Coverage and waiting period
For a home, NFIP policies offer up to $250,000 of building coverage and up to $100,000 of contents coverage, purchased separately. A policy usually takes effect 30 days after purchase, with limited exceptions such as a policy bought in connection with a mortgage. Since October 2021 FEMA has priced policies under a method called Risk Rating 2.0, which uses property-specific flood risk rather than only the flood zone.
What counts as a flood
The NFIP defines a flood as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land, or of two or more properties, from sources such as overflowing rivers, rapid runoff or mudflow. Water that backs up through a sewer or drain is covered only when the backup is directly caused by such a flood. A sump pump failure or sewer backup on its own is a homeowners policy question, usually requiring a water backup endorsement.
Basement limits
NFIP building coverage in a basement is limited. It generally covers items such as the furnace, water heater, electrical panel, sump pump, and cleanup, but not finished walls, floors, ceilings or most contents stored in the basement. In the St. Louis area, where many homes have finished basements, this gap is one of the most common surprises after a flood. Read the policy’s basement section before a loss, not after.
Filing a claim
Report the loss to the insurer that issued the policy promptly, photograph everything before it is removed, and keep samples of removed materials when asked. NFIP claims require a signed proof of loss within the policy’s deadline. Moisture readings and drying logs from the restoration company help support the building portion of the claim.
Key takeaways
- Homeowners policies exclude flood; NFIP or private flood insurance fills the gap.
- Expect a 30-day wait before a new NFIP policy takes effect.
- NFIP basement coverage is narrow: finished walls, floors and most contents are not covered.
Related glossary terms
Related services and guides
- Insurance claims assistance
- Insurance claim process guide
- Insurance carriers
- Basement flooding cleanup
- Basement water in Greater St. Louis: flood, sewer backup or sump failure (PDF white paper)
Identifiers
References
Reviewed by Jake Lusby, owner of Gateway Water & Mold. Part of our entity reference pages. See our editorial policy to report an error.
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