Charleston, WV -- Victims of the recent West Virginia floods who had the foresight to purchase flood insurance from the National Flood Insurance Program (NFIP) may be eligible for increased financial assistance to cover the cost of rebuilding or relocating their homes or businesses.
Help, in the form of increased coverage to rebuild, relocate, or demolish a structure, is available through the Increased Cost of Compliance (ICC) provision written into all NFIP policies purchased or renewed since June 1, 1997. The coverage may provide up to $20,000 to offset homeowner and business costs associated with bringing the structure into compliance with their community's floodplain ordinance.
"The ICC provision is designed to help policy holders take the steps required to reduce future flood damage to their home or business," said Carlos Mitchell, federal coordinating officer for this disaster. "While it will not always cover all the costs of rebuilding or removing a building it is a good investment in security and peace of mind for the individual and community."
Homeowners and businesses may file an ICC claim if the building has "substantial damage." Substantial damage occurs when the community determines that a structure is damaged to the point that repairs will cost 50 percent or more of the building's pre-flood market value.
ICC funds may be used to elevate the building to or above the flood level adopted by the community, relocate the building out of the floodplain, flood proof non-residential buildings, or demolish a damaged building. Repairs and rebuilding done under this program must be done in accordance with local building codes and must comply with local floodplain ordinances.
ICC claims are adjusted separately from flood-damage claims. The appropriate local government agency must determine that the structure has been substantially damaged by the flood. This determination is made when a permit is applied for to repair the damaged structure. Once the local government has made that decision, the policyholder should call his or her insurance agent to file an ICC claim.