FEMA Increased Cost of Compliance (ICC) coverage

If your home or business has been damaged by a flood, you may receive a notice from your local floodplain administrator that your home has been “substantially damaged” or classified as a “repetitive loss property.” These classifications could require you to meet certain local building requirements as you repair or rebuild the structure.

If your building is insured through the National Flood Insurance Program (NFIP) with a Standard Flood Insurance Policy (SFIP), Increased Cost of Compliance (ICC) coverage can help cover the costs of mitigation measures so the building is constructed in accordance with the latest state and local floodplain management ordinances or laws. Eligible NFIP policyholders can receive up to $30,000 to offset the cost of bringing their home or business into compliance.

Acceptable mitigation measures are elevation, floodproofing (non-residential buildings), relocation, demolition, or any combination thereof. ICC claims apply to structures only, not building contents. To be eligible for ICC, your community building department must determine your structure to be substantially or repetitively damaged by flooding.

Next Steps:

1. When you apply for a building permit to begin repairing your home or business, your community will determine if your home or business has been substantially damaged or repetitively damaged by a flood.
2. If your community determines that your home or business is substantially or repetitively damaged, a local official will explain the floodplain management ordinance provisions that you are required to meet. You may also want to consult with the local official before you make the final decision on which mitigation option(s) to pursue.
3. Contact the insurance company or agent who wrote your flood insurance policy to file an ICC claim. Your insurer will assign a claims representative to help you process the claim.
4. Get estimates from contractors on the cost of your mitigation project.
5. Once the project is completed, local officials will inspect and issue a certificate of occupancy or confirmation letter. Submit this document to your claims representative.

Special Considerations:

• ICC claims are only available for substantially damaged or repetitively damaged homes and businesses, and can only be used to pay for the cost of meeting your local community’s floodplain management ordinance.