Richmond, KY -- National Flood Insurance Policyholders who sustained substantial damage to their home or business due to the recent storms, could qualify for funds to help prevent flooding from happening again.
Property owners who rebuild in a special flood hazard area are required to meet state and local floodplain ordinances before they rebuild. When a resident has flood insurance, and the structure is substantially damaged, the resident may be eligible to file an Increased Cost of Compliance (ICC) claim through the National Flood Insurance Program (NFIP). This claim is processed separately from regular flood insurance policy damage claims.
An ICC claim can allot up to $20,000 to help offset the increased costs associated with bringing a home or business into compliance with local community floodplain ordinances.
Increased Cost of Compliance monies can be used in one of four categories:
- Elevation raises your home or business to or above the flood elevation level adopted by your community.
- Relocation moves your home or business out of harm's way.
- Demolition tears down and removes flood-damaged buildings.
- Flood proofing is available primarily for non-residential buildings. It involves making a building watertight through a combination of adjustments or additions of features to the building that reduces the potential for flood damage.
"You can only file an ICC claim if your community determines that your home or business has been substantially damaged or repetitively damaged by a flood," said Mike Lynch, state mitigation officer with Kentucky's Division of Emergency Management. "This determination is made when you apply for a building permit from your local officials to begin repairing your home or business".
Substantial Damage is when your community determines that your home or business is damaged for any reason to the point that repairs will cost 50 percent or more of the building's pre-damage market value.
If a local floodplain administrator for the community does determine that a home or business is substantially damaged, a local official will explain the floodplain management ordinance provisions that will have to be met.
"Once the community has made this determination, you should contact the insurance company or agent who wrote your flood policy to file an ICC claim," said Gracia B. Szczech, FEMA's federal coordinating officer overseeing Kentucky's recovery. "The insurer will assign a claims representative who will help you process your claim."
Anyone who lives in a community that participates in the National Flood Insurance Program is eligible to buy a flood insurance policy for any structure they own. These policies are backed by the federal government and purchased and written through your local insurance agent.
For additional information on ICC Claims, call your insurance company or agent, or call the NFIP toll-free at 1-888-FLOOD29, (1-888-356-6329). Those who have speech or hearing impairments should call the TDD number at 1-800-427-5593.