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When property owners receive financial assistance from the Federal Government (FEMA) following a Presidentially declared disaster, they may be required to purchase flood insurance coverage.  This requirement is mandated under the National Flood Insurance Reform Act (NFIRA) of 1994.  It is imposed when a building has been damaged and is located in an area that is at high risk of flooding.  These high-risk areas are called Special Flood Hazard Areas (SFHAs).

The NFIRA requirement applies to insurance buildings and personal property, located in SFJAs, that have been damaged by the disaster event.  Financial assistance can come in the form of Federal disaster assistance grants or loans.

  • If you are a homeowner and receive Federal financial assistance, flood insurance coverage must be maintained at the address of your home even if the damaged building is replaced by a new one. If you sell your home, you are required to inform the new owners that they must maintain flood insurance coverage on the building. Often, an existing flood insurance policy can be transferred to a new owner with no lapse in coverage.


  • If you are a renter and receive Federal financial assistance, flood insurance coverage must be maintained on the contents for as long as you live at the flood-damaged rental property. The requirement for flood insurance is lifted once you move from the building.


  • If you receive a Certificate of Flood Insurance from FEMAflood insurance has been provided under a Group Flood Insurance Policy following a Presidential disaster declaration. This policy provides minimum building and/or contents coverage in exchange for a small premium.

Even without the NFIRA requirement, it is a wise decision to purchase flood insurance. But, because Federal law mandates the purchase of flood insurance as a condition of disaster funding, an applicant who does not comply with the NFIRA flood insurance obligation may become ineligible for future disaster assistance. It’s that important.


With all that you are going through, don’t let this vital coverage slip through the cracks. Protect yourself and your family from future financial loss by purchasing and maintaining flood insurance coverage.

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Flood Smart

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Call Reed Integra for your Flood Insurance.



Vidalia 318-336-5202

Ferriday 318-757-4780

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