The U.S. government-backed National Flood Insurance Program (NFIP) has a coverage limit of $250,000 that private insurers can provide policies exceeding.
October 16, 2025
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The NFIP's coverage cap creates a role for private insurers to offer higher-coverage policies.
For properties in high-risk flood zones, government-backed NFIP policies are typically cheaper than private flood insurance, while in areas without high flood risk private flood insurance often has lower rates.
October 16, 2025
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Comparative pricing between NFIP and private-market policies varies by assessed flood risk of the property.