23 Federal Laws That Affect Residential Sales: Insurance

NFIP requires flood insurance in certain areas.

February 8, 2012

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   National Flood Insurance Program (NFIP)

Summary:
The federal government makes flood insurance available to home owners in areas in which the local government has adopted and enforces a floodplain management ordinance to reduce flood risks to new construction in flood hazard areas. Purchase of flood insurance is a mandatory condition of receiving individual federal flood relief funds.

Regulator:
Federal Emergency Management Agency 

Original statutory authority:
National Flood Insurance Act of 1968,” Public Law No. 90-448

Penalties:
Restrictions are in place for homes in flood areas that have sustained repetitive losses.

More information:
NAR Field Guide to Flood Insurance

This summary is not a comprehensive analysis of how the law applies to you.  Consult a qualified real estate attorney to determine how the federal law and laws in your state impact you in this area.

Robert Freedman

Robert Freedman is the former director of multimedia communications at NAR.