TEXAS CITY, Texas -- Flood-stricken Texans living in high-risk flood areas, also known as special flood hazard areas, who have the foresight to purchase flood insurance from the National Flood Insurance Program (NFIP) may be eligible for coverage under their policy for increased cost of compliance to help cover the cost of elevating, demolishing or relocating their homes or businesses out of the floodplain in the event of a future flood event.
NFIP Increased Cost of Compliance (ICC) coverage may provide up to $30,000 to offset homeowner and business costs associated with bringing the structure into compliance with a community's floodplain ordinance.
Brad Harris, the federal coordinating officer for Hurricane Ike recovery efforts said, "Residents with flood insurance have already taken an important first step in dealing with their flood-risk situation. These funds will help with additional costs that will produce long-term savings by reducing future risk."
The ICC program relies on local authorities, such as flood plain administrator or building official to determine if a building has "substantial damage."
Substantial damage occurs when a locality determines that a structure is damaged due to flooding 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 base flood elevation 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 coverage must be done in accordance with local building codes and must comply with local floodplain ordinances.
While ICC claims are adjusted separately from flood damage claims, it is only available on substantially damaged or repetitively damaged structures. The maximum amount collectible for both the ICC and the physical dwelling damage from regular flood insurance cannot exceed $250,000 for a residential dwelling or $500,000 on a commercial building.
The first step is to contact a local official who must determine that the structure has been substantially damaged. This can be done when a building permit is applied for to repair the structure. Once the determination is made, call your insurance agent to file an ICC claim.
FEMA's mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.