Why is flood insurance necessary for public buildings in a floodplain even if a disaster declaration occurs?

Flood insurance is essential for public buildings in a floodplain primarily because federal disaster assistance is contingent upon the level of insurance coverage. When a disaster declaration occurs, it may still provide some financial relief, but this assistance is often reduced if the insured value of the property is low. The National Flood Insurance Program (NFIP) aims to lower the financial burden on taxpayers by encouraging property owners to carry flood insurance. Therefore, those who have proper coverage may receive more significant assistance because their financial losses are partially mitigated by their insurance payouts. This serves as an incentive for communities to invest in flood insurance, enhancing their resilience to flood-related disasters. By having adequate flood insurance, public buildings can ensure they receive comprehensive support to recover from flood damages, rather than relying solely on disaster aid, which may not cover the full extent of the losses incurred.