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Build Safer and Stronger with NFIP’s Increased Cost of Compliance Coverage

Release date: 
March 7, 2017
Release Number: 

BATON ROUGE, La. — If your home or business was substantially damaged in the August flooding, you may qualify for additional assistance, Increased Cost of Compliance (ICC), to elevate a structure to meet local floodplain-management regulations. Your National Flood Insurance Program (NFIP) policy may provide up to $30,000.

Substantial damage applies when the cost of restoring a structure equals or exceeds 50 percent of its pre-damage market value. Some communities have more restrictive regulations.

For mitigation purposes, homes and businesses may require changes. Structures that comply with floodplain management regulations have an enhanced ability to withstand storms and floods. Examples of ICC measures include elevation, relocation and floodproofing.

Increased Cost of Compliance Process

You will receive a substantial damage letter if your community determines the home or business was substantially damaged. From there:

  • A signed Increased Cost of Compliance (ICC) Proof of Loss form can then be submitted to your insurance company.
  • Provide a contractor’s estimate for the proposed ICC-eligible measures to your home or business and copies of construction permits. Your insurance company needs these to consider an ICC claim.
  • Request funds within 60 days after your home or business is declared substantially damaged. You have six years from the date of loss to complete the chosen and approved ICC measures.

Visit the Louisiana Department of Transportation and Development’s website at to find your community’s floodplain administrator or permitting official to learn more about the substantial damage determination process.

U.S. Small Business Administration (SBA)

The U.S. Small Business Administration (SBA) may be another source of funds to make your home or business safer and stronger.

If your loan application is approved, you may be eligible for additional funds to pay for improvements that will protect your property against future damage. The funds would be in addition to the amount of the approved loan.

For more information, call the SBA at 800-659-2955 or TTY 800-877-8339. You may also go online to

Last Updated: 
March 8, 2017 - 07:57
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