Victims With Flood Insurance May Be Eligible For Up To $30,000 Extra
Release Date: September 24, 2003
Release Number: 1490-07
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Raleigh, NC -- Victims of Hurricane Isabel who had flood insurance on their damaged buildings may be eligible for up to $30,000 in aid they often do not even know about.
That money can be used to make their home or business safe against future floods.
If a building has been severely or repeatedly flooded, explained Federal Coordinating Officer Gracia Szczech of the Federal Emergency Management Agency, it may be designated by the local building department as "substantially damaged" or a "repetitive loss property." The policyholder is then required to rebuild it in a flood-safe way, which usually means raising or moving the structure. However, that is when the extra funds to pay for future risk reduction, for up to $30,000, may also kick in.
The benefit is called "Increased Cost of Compliance" (ICC) coverage, because it helps pay for the increased cost of complying with the building code. It is a part of most National Flood Insurance Program policies.
"This is a valuable source of mitigation money that is sometimes overlooked," said Szczech. We encourage policyholders who have substantial or repeated flood damage to contact their local building departments and ask if they may be eligible to file an ICC claim."
The ICC claim is filed separately from any insurance claim for flood damage, although it is part of the same policy and is filed with the same insurance company.
The money can be used in combination with low-interest disaster loans from the Small Business Administration, or disaster-related grants, to reduce the cost of making one's home or business safe from flooding.
Last Modified: Thursday, 25-Sep-2003 08:14:38