JEFFERSON COUNTY, MO - An often overlooked aspect in National Flood Insurance Program (NFIP) policies has helped many homeowners in the State of Missouri finance required improvements that will save them from significant damage in future flooding events. Many of the Missouri homeowners flooded in 2008 are filing claims under the Increased Cost of Compliance (ICC) coverage to finance improvements that may save them from future damage.
In Missouri, NFIP statistics show 69 closed ICC claims and a total payout of $1,158,339 from the time the program began in 1996 until the end of July 2008. The list shows claims from throughout the State, including Carroll and Holt Counties in the northwest, Stone County in the southwest, Cape Girardeau County in the southeast, Marion and Lincoln counties in the northeast, and Maries County in the middle, among others.
An ICC claim filed with an NFIP policyowner’s insurance agent could mean up to $30,000 for a homeowner to pay for bringing a non-compliant substantially flood damaged home up to floodplain ordinance standards after a flooding event.
One of the counties hardest hit by the floods in 2008 was Lincoln County. According to Kelly Hardcastle, Emergency Manager and Executive Director of Lincoln County Services, the 2008 floods destroyed four homes and caused major damage to 161 others. He said 19 homes, including primary and secondary residences, suffered heavy damage after floods from 2001 and were rebuilt with funds from ICC.
“None of those had damage this year [2008],” he said. The high percentage of flood insurance policies and the obvious benefit of ICC coverage resulted in 45 ICC applications filed in 2008 with insurance agents. Hardcastle said these insurance agents are expecting an equal number still to come in.
Dale S. Schmutzler, floodplain management officer for the Missouri State Emergency Management Agency, keeps officials up- to-date on programs to help disaster-impacted households. Many homes in Lincoln County are insured under NFIP; property owners and agents are knowledgeable about the insurance. He said a number of residential elevations are underway since the spring flooding. The ICC is being used to rebuild permanent residences.