What Is FEMA?

The Insurance Shopper of  Virginia Beach, VA role is more than to offer flood insurance policies, but our goal to educate Virginia residents about the history of flood insurance. 

History of Flood Insurance

There is a two hundred year history of  Federal emergency management relief. For instance, when the John T. Ford’s Theater collapsed in June 1893, compensation legislation was passed, to cover the structure and personal injuries by the 54th Congress. President Jimmy Carter issued two Executive Orders, on April 1, 1979,  which ordered the creation of FEMA, the Federal Emergency Management Agency, within the Department of Homeland Security.

The Role Of FEMA

FEMA coordinates disaster relief in the United States requested by state and local governments. To initiate FEMA, the state Governors must seek disaster relief. If the catastrophe occurred on Federal property, such as the destruction of the Alfred P. Murray Federal Building in Oklahoma City, no initiation from the state’s Governor was necessary.  

As can be seen in Hurricanes, Harvey, and Irma, FEMA aid came in the form of the National Flood Insurance Program (NIFP), on the ground support of experts in the specialized fields of construction and infrastructure. Further, relief funds are provided to state and local government as low-interest loans, along with support from the Small Business Administration.  

Private Flood Insurance

FEMA, on March 16, 2012, issued a memorandum,  “Non-Federal Flood Insurance Policies." The memo stated that it is FEMA’s official policy that lending institutions that underwrite flood insurance have the authority to accept non-Federal flood insurance.

The importance of adding private flood insurance is that the NIFP  limits its coverage too. $250,000. The consumer would have to purchase an Excess Flood Insurance Policy.  However, NIFP will permit a private flood insurance policy to offer its coverage more than $25,000. Thus, if the price is right, an Excess Flood Insurance Policy would not be needed.

Flood insurance can be complicated. We at Insurance Shopper of  Virginia Beach, VA will cut through the red tape. Please contact us before the next big storm.