What type of claims does the National Flood Insurance Program (NFIP) handle?

The National Flood Insurance Program (NFIP) specifically addresses claims related to damage from floods. The program was established to provide insurance coverage for property owners in flood-prone areas, recognizing that traditional insurance often does not cover flood damage. Flooding can occur from various causes, including heavy rainfall, snowmelt, or storm surges, leading to significant property loss. By offering flood insurance, the NFIP aims to reduce the financial burden on communities and homeowners affected by flooding and encourage better floodplain management practices. Other types of damage, such as from fires, earthquakes, or tornadoes, are not covered under this program, as they fall under different risk categories that may be insured through separate policies.