Flood Insurance May Have Extra Benefits Called Increased Cost Of Compliance 

Release Date: October 28, 2004
Release Number: 1549-073

» More Information on Alabama Hurricane Ivan

Mobile, Ala. -- Flood insurance helps policyholders get their lives back in order and their homes back in shape after a flood. If you were flooded by Hurricane Ivan and have flood insurance, you may be eligible for additional assistance.

State and federal officials want to remind Alabama residents that homes or businesses damaged by Hurricane Ivan may be required to meet certain building standards to reduce future flood damage before they repair or rebuild. The cost of rebuilding to meet those standards may be assisted through the National Flood Insurance Program's (NFIP) Increased Cost of Compliance (ICC) endorsement for insured structures. Since June 1, 1997, every NFIP flood insurance policy has included ICC.

If your community declares your structure to be substantially or repetitively damaged, ICC may help pay for the cost to elevate, demolish, or relocate the building. Under ICC, homeowners may qualify for reimbursement of up to $30,000 to comply with local floodplain regulations.

If you have been flooded, and the cost of repairs exceeds 50 percent of the structure's pre-flood fair market value, and you have flood insurance, talk to your insurance agent about filing a claim under the ICC endorsement of your policy.

Policy owners with substantially damaged property must ask their agents to file for funds to cover their Increased Cost of Compliance, in addition to filing for reimbursement for property damage. Often this is a second claim made after the community makes its decision on your specific property. If a policyholder doesn't ask, insurance companies will not offer.

Not insured for flood damage? Buying flood insurance is the best thing you can do to protect your home, your business, family, and financial security. For information about the program call your insurance agent or call (888) 379-9531 today.

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: Friday, 29-Oct-2004 10:17:31