Mandatory Purchase of Flood Insurance

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The National Flood Insurance Program (NFIP) is a federal program enabling property owners in participating communities to purchase flood insurance on eligible buildings and contents, whether they are in or out of a floodplain.  The City of Rock Hill participates in the NFIP, making federally backed flood insurance available to its property owners.
The NFIP insures most walled and roofed buildings that are principally above ground on a permanent foundation, including mobile homes, and buildings in the course of construction.  Property owners can purchase building and contents coverage from any local property and casualty insurance agent.  To find a local insurance agent that writes flood insurance in your area, visit
Mandatory Purchase Requirement:  Pursuant to the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, the purchase of flood insurance is mandatory for all federal or federally related financial assistance for the acquisition and/or construction of buildings in Special Flood Hazard Areas (SFHAs).  An SFHA is defined as any A or V flood zone on a Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map (FIRM).
The mandatory purchase requirement also applied to secured loans from such financial institutions as commercial lenders, savings and loans associations, savings banks, and credit unions that are regulated, supervised, or insured by federal agencies, such as the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the Comptroller of Currency, the Farm Credit Administration, the Office of Thrift Supervision, and the National Credit Union Administration.  It further applies to all loans purchased by Fannie Mae or Freddie Mac in the secondary mortgage market.
Federal financial assistance programs affected by the laws include loans and grants from agencies such as the Department of Veterans Affairs, Farmers Home Administration, Federal Housing Administration, Small Business Administration and FEMA disaster assistance.