Flood Insurance Options May Ease Rebuilding Costs
Release Date: July 31, 2003
Release Number: 1474-80
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Charleston, WV - Under the National Flood Insurance Program (NFIP) individuals and business owners who purchased flood insurance that was in effect before June 11, 2003 could qualify for increased financial assistance to cover the cost of rebuilding or relocating their homes or businesses.
The Increased Cost of Compliance (ICC) provision written into all NFIP policies purchased or renewed since June 1, 1997 can provide up to $30,000 to offset homeowner and business costs. The structure must be in a High Risk Flood Zone "A" and the total claim, including the ICC, cannot exceed the policy maximum.
"The ICC provision is designed to help policy holders take the steps required to reduce future flood damage to their home or business," said Gloria Prince NFIP Program Specialist. "While it will not always cover all the costs of rebuilding or removing a building, it is a good investment in security and peace of mind for the individual and community."
Homeowners and businesses may file an ICC claim if the building has "substantial damage." Substantial damage occurs when the community determines that a structure is damaged 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 flood level 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 program must be done in accordance with local building codes and must comply with local floodplain ordinances.
ICC claims are adjusted separately from the flood-damage claims in that the appropriate local government agency must determine that the structure has been substantially damaged by the flood. This determination is made when the owner applies for a permit to repair the damaged structure. Once the local government has made that decision, the policyholder should call his or her insurance agent to file an ICC claim.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages Citizen Corps, the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Thursday, 31-Jul-2003 08:55:52