The National Flood Insurance Program (NFIP) was established with the passage of the National Flood Insurance Act of 1968. The NFIP is a Federal program enabling property owners in participating communities to purchase insurance as a protection against flood losses in exchange for State and community floodplain management regulations that reduce future flood damages. Over 20,000 communities participate in the Program. To assist in answering any questions you may have regarding the Program, attached is a brochure describing the Program and a frequently asked questions document. Joining National Flood Insurance Program. National Flood Insurance Program Q& A.