Last updated Oct. 8, 2014: The National Flood Insurance Act of 1986 established the National Flood Insurance Program after a series of floods along the Mississippi river made private insurance virtually unattainable for residencies and small businesses. The NFIP is overseen by the director of the Federal Emergency Management Agency (FEMA), and allows participating communities to buy subsidized flood insurance in exchange for implementing certain floodplain management practices.
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