Federal Insurance Administration

What Does Federal Insurance Administration Mean?

The Federal Insurance Administration is a government agency that offers certain types of insurance to specific groups, including flood insurance for individuals living in high-risk areas, FAIR plans for homeowners denied coverage by private insurers, and federal crime insurance.

Insuranceopedia Explains Federal Insurance Administration

People living in areas prone to severe flooding, such as flood zones or near rivers, often find it challenging to obtain flood insurance from private insurers. The Federal Insurance Administration offers insurance to these individuals to help ensure that property owners do not have to bear the full risk themselves. Today, much of this work falls under FEMA’s National Flood Insurance Program, and homeowners in flood-prone areas can compare both government-backed and private flood insurance policies when shopping for coverage. Property owners who cannot get a standard policy because of where they live or the condition of their home, may need to look at high-risk homeowners insurance instead.