Abstract: Most of the affected flood households do not have insurance protection to cover their economic losses and face difficulties in rebuilding their life aftermaths. The objective of this study is to investigate the viability to develop the national insurance as part of risk reduction strategies. Next objective is to examine the participation of low income and poor in the national flood insurance from the provider’s views. Findings indicates that the national insurance is viable to be developed by the insurers and takaful operators however, government involvement is highly needed. National flood insurance backed by the government should be implemented to redevelop the life of citizen who directly impacted by the flood. Subsequently, funding model was developed to enable the people at the lower strata of economy participate in national insurance for their protection.