Flood Insurance Policyholders Could Benefit From Additional Aid 

Release Date: October 8, 2005
Release Number: 1605-060

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MONTGOMERY , Al. -- Flood damage, unlike lightning, does strike in the same place more than once. More than 20,000 communities enrolled in the National Flood Insurance Program (NFIP) have taken this to heart and agreed to enforce strict building code practices that will lessen the risk of repeat damage by floodwaters.

For eligible flood insurance policyholders, as much as $30,000 could be available to defray the cost of bringing homes and businesses into compliance with floodplain ordinances.

NFIP policyholders may benefit from " Increased Cost of Compliance" (ICC) coverage, which partly covers the extra cost of meeting building codes. It is included in most National Flood Insurance Program (NFIP) policies. Flood victims should contact their agent about this coverage.

The ICC benefit is not part of the initial claim for the flood damage insurance, however, it is filed with the same insurance company. The money can be used in combination with low-interest disaster loans from the Small Business Administration (SBA), or disaster-related grants, to reduce the cost of making one's home or business safe from flooding.

Michael Bolch, senior deputy federal coordinating officer said. " If a home or business has been flooded several times, it will be considered repetitive loss property or substantially damaged by the local building department." "The policy holder is then required to build away from the floodplain, to demolish or to raise the structure to meet the building code," he added.

Local officials are responsible for determining substantial damage or repetitive damage, cost of repair, market value, issuing permits and verifying compliance.

Property owners are responsible for contacting their insurance company or agency to file ICC claims. They also need to contact the local officials to obtain permits, submit building plans and other information. Property owners can purchase flood insurance through most major insurance carriers selling homeowners' or business policies, or by calling the NFIP at 1-800-427-4661 for further information.

FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any normal incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.

Last Modified: Tuesday, 11-Oct-2005 08:32:48