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Steps For the Assignment of Coverage D - Increased Cost of Compliance Coverage

FEMA allows policyholders who are found eligible to receive ICC payments, to assign their ICC  payment so it can be included in a FEMA-sponsored flood mitigation grant involving eligible ICC compliance activities. The policyholder can agree to transfer this interest by submitting the Assignment of Coverage D – Increased Cost of Compliance Coverage Form (Appendix I) to the local authorities, state, or community administering the grant. Once the policyholder assigns the ICC claim, the local authorities, state, or community will be responsible for completing the eligible mitigation activity. Upon receipt of the completed Assignment of Coverage D Form, the insurer should process the ICC claim in the customary manner up to the policy limit of $30,000, when available.

Adjusters and insurance company representatives are required to verify and include the required ICC documentation based on the selected mitigation activity as they normally would. 


Steps for the Assignment of Coverage D - Increased Cost of Compliance Coverage:

  1. Policyholder consents to the assignment of the ICC payment.
  2. The community official will provide the policyholder with an Assignment of Coverage D Form (Appendix I).
  3. The policyholder signs the form and provides the signed form to the community official.
  4. The community official sends a copy of the completed form, along with the community's signed declaration of substantial damage to the NFIP Bureau & Statistical Agent at, or to PO Box 310, Lanham, MD 20703-0310.
  5. NFIP BSA maintains a database of the ICC information submitted by the community. The NFIP BSA then sends the documents to the appropriate insurer, with instructions. The insurer will then assign an adjuster.
  6. The assigned adjuster contacts the policyholder to advise s/he has the assignment and contacts the local community official to coordinate and help complete the process.
  7. The adjuster receives/reviews the contract for demolition, elevation, relocation or floodproofing to determine the cost.
  8. Once the dollar value has been determined, your adjuster will request the community official sign the required ICC documents, as needed.

  9. The adjuster sends the final report, along with all other necessary documentation to the insurer for payment.
  10. The insurer issues the check to the community and advises the NFIP BSA of the amount of the payment.



Last Updated: 
12/19/2019 - 08:54