In 1968, Congress created the National Flood Insurance Program (NFIP) in response to the rising cost of taxpayer funded disaster relief for flood victims and the increasing amount of damage caused by floods. The Federal Emergency Management Agency (FEMA) manages the NFIP.

Flood Insurance Rate Maps (FIRMs) were first produced in the early 1970s for communities in Anoka County. Recently, the maps have been revised utilizing advances in landform mapping technology. To make homeowners, renters and businesses eligible for federally backed flood insurance – communities have adopted floodplain management ordinances compliant with the National Flood Insurance Program.

Big Changes. The Homeowner Flood Insurance Affordability Act of 2014 phases out subsidies for some older buildings in high-risk flood areas. As a result, rates for these buildings will rise until they reach full-risk rates. In addition, all policyholders will be subject to new assessments and surcharges regardless of flood zone or date of construction.

Property owners must purchase flood insurance if:

• the property has a mortgage or loan on it from a federally regulated institution (which includes most types of mortgages and home equity loans) AND
• the mortgaged structure (structures, not land) is located within the high flood risk area (1% annual chance or “100-year” floodplain).

For more information on the National Flood Insurance Program go to the FloodSmart website or call 1-888-379-9531. Also, see the Minnesota Department of Natural Resources Flood Insurance Questions and Answers webpage.