What does the National Flood Insurance Program (NFIP) primarily insure against?

The National Flood Insurance Program (NFIP) primarily insures against flooding. This program was established to provide insurance protection to property owners, renters, and businesses in flood-prone areas. Flooding can result from various sources, such as heavy rainfall, storm surges, or melting snow, and these risks are often excluded from standard homeowners insurance policies. By offering this specific coverage, the NFIP aims to promote floodplain management and reduce the financial impact on communities faced with flood-related disasters.

In contrast, fire, theft, and earthquake are covered by other types of insurance products outside the scope of the NFIP. Homeowners insurance typically covers fire and theft, while earthquake insurance is a separate policy option often required in areas with a high seismic risk.