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National Flood Insurance Program (NFIP) Policy Index


The Standard Flood Insurance Policy has a provision that will pay the policy holder to comply with a State or local floodplain management law or ordinance affecting repair or reconstruction of a structure suffering flood damage. Mitigation activities eligible for payment are: elevation, floodproofing, relocation, or demolition (or any combination of these activities) of the structure.

Policyholders may receive up to $30,000 under this coverage. The structure must meet certain eligibility criteria, including a substantial damage or repetitive loss determination by a local official.


Related Keywords

Substantial Damage

Supplemental Information

A building is eligible for an ICC claim payment if it is in a Special Flood Hazard Area (SFHA) and the community floodplain manager determines that the building has been damaged by flood whereby the cost of restoring the building to before damaged conditions would equal or exceed 50 percent of the market value of the building before the damage occurred as determined by the community.

If it is a repetitive loss structure and is subject to State of community floodplain management laws or ordinances. There are two conditions that must be met in order for an ICC claim to be paid for a repetitive loss structure: (a) The State or community must have adopted and be currently enforcing a repetitive loss provision or a cumulative substantial damage provision requiring action by the property owner to comply with the State of community floodplain management laws or ordinances; and (b) The building must have a history of National Flood Insurance Program (NFIP) claim payments that satisfy the definition of ""repetitive loss structure.

Under ICC coverage, the building must be elevated, floodproofed, demolished, or relocated as soon as reasonably possible after the loss, not to exceed two years.


Last Updated: 
01/23/2015 - 02:30
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