Before delving into specifics of the available defenses, it is helpful to provide an overview of the complex regulatory framework governing federal flood insurance policies. At the heart of the statutory scheme is the National Flood Insurance Act of 1968 (NFIA), which created the NFIP under 42 U.S.C. §4001 et seq. The NFIP is administered by the Federal Emergency Management Agency (FEMA) and supported by taxpayer funds, which pay for claims that exceed the premiums collected from the insured parties. Simply stated, the NFIP is a federally subsidized program designed to make flood insurance available to the general public at or below actuarial rates.

L. No. 112-141, 126 Stat. 405 (codified as amended at 42 U.S.C. §§ 4001-4129). 542 U.S.C. §§ 3601-3631.