Who is responsible for setting the rates and coverage rules for flood insurance policies?

FEMA, the Federal Emergency Management Agency, is responsible for setting the rates and coverage rules for flood insurance policies under the National Flood Insurance Program (NFIP). This program was established to provide homeowners, renters, and businesses in flood-prone areas with access to affordable flood insurance.

FEMA develops the guidelines, pricing structures, and coverage parameters based on actuarial data and flood risk assessments. The agency also monitors the financial health of the NFIP and ensures that the program remains viable while providing coverage to policyholders. By centralizing these responsibilities, FEMA helps ensure that individuals in flood-prone areas have a reliable means of financial protection against flood damage.