Flood Insurance Funds Available To Raise, Raze, Or Relocate
Release Date: November 14, 2002
Release Number: 1435-129
» More Information on Louisiana Tropical Storm Isidore
Baton Rouge, LA -- Flood-stricken Louisianans living in high-risk flood areas, also known as special flood hazard areas, who had the foresight to purchase flood insurance from the National Flood Insurance Program (NFIP) may be eligible for increased financial assistance to help cover the cost of elevating, demolishing or relocating their homes or businesses out of the floodplain.
NFIP Increased Cost of Compliance (ICC) coverage may provide up to $20,000 to offset homeowner and business costs associated with bringing the structure into compliance with a community's floodplain ordinance.
Carlos Mitchell, the federal coordinating officer for Tropical Storm Isidore and Hurricane Lili recovery efforts said, "Residents with flood insurance have already taken an important first step in dealing with their flood-risk situation. These funds will help with additional costs that will produce long-term savings by reducing future risk."
The ICC program relies on local authorities, such as the supervisor of building permits, to determine if a building has "substantial damage" or "repetitive damage."
Substantial damage occurs when a locality 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.
Repetitive damage losses occur when at least two NFIP claims have been made and paid for the same property in the past ten years in a community that has a repetitive loss provision in its floodplain management ordinance. The damage must be 25 percent or higher of the market value of the structure for each occurrence.
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 flood damage claims. The first step is to contact a local official who must determine that the structure has been substantially or repetitively damaged. This can be done when a building permit is applied for to repair the structure. Once the determination is made, call your insurance agent to file an ICC claim.
Last Modified: Thursday, 24-Jul-2003 15:19:04