The National Flood Insurance Program (NFIP) is a voluntary program that offers flood insurance in exchange for a community's commitment to practice sound land use management. The NFIP provides maps of flood prone areas and standards for development in flood prone areas in exchange for Federally subsidized flood insurance. The Federal Insurance and Mitigation Administration (FIMA), a component of the Federal Emergency Management Agency (FEMA), manages the NFIP.
Mortgage loans and disaster assistance are severely limited in communities that do not participate in the NFIP. Check the Maine Community Status Book to see if your community participates in the NFIP.
NFIP is made up of three parts: maps, regulations, and insurance. The maps are the foundation for local permitting. Regulations are adopted via a community ordinance with minimum standards for development in flood prone locations; for more information on floodplain ordinances and permits, visit the Community Floodplain Regulations page.
Maine is currently underinsured when it comes to flood insurance. Currently, there are over 8,000 flood insurance policies in effect in Maine with coverage totaling over $1.8 billion. The average annual flood insurance policy premium in Maine is $908. There is a 30-day waiting period before the flood insurance policy goes into effect.
Insurance rates have been declining while disasters have been increasing. All areas are susceptible to flooding and 25% of all flood claims occur in the low-to-moderate risk areas. All property owners should review their flood risk and consider purchasing flood insurance, as it is the best means of recovery from flood damage.
Mitigation investments strengthen resilience and decrease financial burdens on individuals and communities. Flood damage is reduced and buildings constructed in compliance with NFIP building standards suffer less damage.
Visit FloodSmart to learn about flood insurance policies and coverage, find an agent, how to purchase flood insurance, how to file a claim, and more.
Flood insurance is required by federal law.
Lending institutions that are federally regulated must require flood insurance to buy, build, or improve structures in Special Flood Hazard Areas (SFHAs). Flood insurance is available to any property owner or renter located in a community participating in the NFIP.
The community is responsible for administering and enforcing the regulations of the NFIP. Title 44 Code of Federal Regulations – Emergency Management and Assistance is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. If you want to know exactly what is required, it is here.
Maine law requires flood disclosure for conveyance of real estate. MRSA Title 33 Chapter 7 §173 and §193 require that the seller or agent state if the property is in a SFHA, provide the flood zone, the map date, and state whether, during the time the seller has owned the property, any flood event has affected the property or structure, if there were any damages, if a flood insurance claim was filed, and if any flood disaster-related aid was provided. Maine Revised Statutes Annotated associated with floodplain management: MSRA, Title 30-A Municipalities and Counties, and MRSA, Title 38 Waters and Navigation.
Additional Flood Insurance Resources
- NFIP offers training for insurance agents and insurance adjusters.
- FEMA’s Top Ten Facts for Consumers is a great place to start for basic questions about flood insurance.
- FEMA’s Flood Insurance Manual explains everything an insurance agent needs to know about the NFIP.
- The Maine Insurance Agents Association provides flood insurance, support, and training to agents and customers.
- The Answers to Questions about the NFIP guide addresses frequently asked questions about the NFIP, including information about flood maps, flood insurance coverage, mitigation actions and more.