Victims With Flood Insurance May Be Eligible For Up To $30,000 Additional Aid 

Release Date: October 27, 2004
Release Number: 1539-235

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ORLANDO, Fla. -- For flooding victims who are eligible, financial help of up to $30,000 may be available to assist in paying the cost of bringing their homes and businesses into compliance with floodplain ordinances.

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 Bill Carwile of the Federal Emergency Management Agency (FEMA), 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 (NFIP) policies.

In addition to the ICC coverage in the flood insurance policy, there may be additional coverage under the Law or Ordinance clause in the homeowners or wind policy. This coverage may assist the property owner in the additional cost of meeting the current building codes, including floodplain management codes. The property owner should contact their insurance agent to ask about this valuable coverage.

"These funds are valuable sources of mitigation money that are sometimes overlooked," said Carwile. "We encourage NFIP 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 is over and above any claim settlement from flood insurance policies.

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. It can be used to help elevate, demolish, or relocate homes or businesses out of the floodplain. It can also be used to floodproof non-residential buildings in other ways. The work must be done in compliance with local building and floodplain ordinances.

"It doesn't make sense to rebuild without ensuring the structure will be more flood-resistant than it was before," said Craig Fugate, state coordinating officer. "This program will reduce risk of future damage."

Property owners can purchase flood insurance through most major insurance carriers who sell homeowners' or business policies, or by calling the NFIP at 1-800-427-4661.

In summary, local officials are responsible for:

Property owners are responsible for:

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 10:41:00