Flood Insurance Policy Holders May Receive Funds To Rebuild Higher 

Release Date: July 29, 2008
Release Number: 1771-039

» More Information on Illinois Severe Storms and Flooding

SPRINGFIELD, Ill. -- Flood insurance policy holders rebuilding in the wake of the June severe storms and flooding may be eligible for up to $30,000 to help cover the cost of bringing their property into compliance with local floodplain ordinances.

Policies issued since June 1, 1997 as part of the National Flood Insurance Program (NFIP) contain an Increased Cost of Compliance (ICC) provision. This coverage is for structures located within a floodplain, also known as Special Flood Hazard Area, which have sustained substantial or repetitive flood damage.

The Federal Emergency Management Agency, which manages the NFIP, makes these funds available to policy holders who build higher and/or stronger in order to reduce the risk of future flood damage.

Flooding is the most costly natural disaster in the United States and about 25 percent of all flood damage occurs outside of mapped floodplains. Yet, less than 2 percent of Illinois homeowners have purchased flood insurance.

Unfortunately, many home and business owners don't discover that their homeowner's insurance policies do not cover flood damage until after a flood has occurred. FEMA hopes that the ICC coverage will help encourage more property owners without flood insurance to buy now.

In order to buy flood insurance the property must be located in a community participating in the NFIP. To participate, a community must adopt and enforce sound floodplain management. This primarily means that participating communities require building standards to exceed the base flood elevations adopted by that community.

Property owners living in participating NFIP communities can purchase flood insurance through most major insurance carriers who sell homeowner's or business policies. There is a 30 day waiting period for all policies to take effect.

For more information, contact the National Flood Insurance Program by calling 1-800-427-4661 or people who are speech- or hearing- impaired who have TTY equipment can call TTY 1-800-427-5593.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Last Modified: Tuesday, 29-Jul-2008 14:28:35