McEvoy Homes can help you navigating the complex FEMA requirements and counsel you on the most cost effective method for you to move forward as well as understand the entire FEMA Compliant House Raising process.
If your home or business is damaged by a flood, you may be required to meet certain building requirements in your community to reduce future flood damage before you repair or rebuild. To help you cover the costs of meeting those requirements, the National Flood Insurance Program (NFIP) includes Increased Cost of Compliance (ICC) coverage for all new and renewed Standard Flood Insurance Policies. ICC coverage is one of several resources for flood insurance policyholders that need additional help rebuilding after a flood. It provides up to $30,000 to help cover the cost of mitigation measures that will reduce flood risk. ICC coverage is part of most standard flood insurance policies available under FEMA’s National Flood Insurance Program (NFIP).
REDUCING FUTURE DAMAGE:
When a building covered by a standard flood insurance policy suffers a flood loss and is declared to be “substantially damaged” or “repetitively damaged,” ICC will help pay up to $30,000 to bring the building into compliance with state or community floodplain management laws or ordinances. Usually this means elevating or relocating the building so that it is at or above the Base Flood Elevation (BFE). Non-residential structures may also be flood-proofed. ICC coverage applies only to buildings, and covers only the cost of the compliance measures undertaken. It is filed separately from the normal flood insurance claim.
DETERMINING WHO IS ELIGIBLE:
In addition to being insured under the National Flood Insurance Program, the building must meet one of two conditions to be eligible to ICC coverage: it must have been either 1) determined by a local official to be “substantially damaged”; or 2) meet the criteria of a repetitive loss structure.
- “Substantial damage” is the determination by the community that damage due to flood has equaled or exceeded 50 percent of the value of the building, and when repaired, it must meet local floodplain management ordinances. If the total damage from flooding is less than 50 percent of the market value of the building, ICC coverage is not available.
- “Repetitive loss” means that a building covered by flood insurance incurred flood-related damage two times over a period of 10 years, and that the cost of the repairs was, on the average, at least 25 percent of the market value of the building before the damage occurred each time. This applies only if the community has adopted a repetitive loss provision in the local floodplain management ordinance. A flood insurance claim must have been paid in both cases.
The combined damage total must be 50 percent of the pre-damage value of the building, but it need not be evenly distributed. So, if the damage was 35 percent of the value of the building in the first event and 15 percent of the value of the building in the second event, the policyholder would qualify for ICC coverage.
HOW TO FILE AN ICC CLAIM:
Your ICC claim is adjusted separately from the flood damage claim you file under your Standard Flood Insurance Policy.
You can only file an ICC claim if your community determines that your home or business has been substantially damaged or repetitively damaged by a flood. This determination is made when you apply for a building permit to begin repairing your home or business.
If your community does determine that your home or business is substantially or repetitively damaged, a local official will explain the floodplain management ordinance provisions that you will have to meet. You may also want to consult with the local official before you make the final decision about which of the options to pursue.
Once your community has made this determination, contact the insurance company or agent who wrote your flood policy to file an ICC claim. Your insurer will assign a claims representative who will help you process your ICC claim. You should start getting estimates from contractors to take the necessary steps to elevate, relocate, flood-proof, or demolish.
HOW YOUR ICC CLAIM PAYMENT IS HANDLED:
You may be able to receive a partial payment once the claims representative has a copy of the signed contract for the work, a permit from the community to do the work, and a return of your signed ICC Proof of Loss. If the work is not
completed, you must return any partial payment to your insurer.
When the work is completed, local officials will inspect and issue a certificate of occupancy or a confirmation letter. Once you submit this document to your claims representative, your insurer will pay the final installment or full payment.
ICC claims will only be paid on flood-damaged homes and businesses, and can only be used to pay for costs of meeting the floodplain management ordinance in your community.
What costs will be eligible for grants?
- Architectural and engineering fees associated with a design for elevating an eligible insured building
- Clearing necessary vegetation and preparing path for installation of lifting supports
- Excavation around the dwelling
- House Lifting, House Raising or jacking/li>
- Additional cost of elevating the risk above the minimum required height
- Temporary support cribbing
- Disconnecting utility connections
- Extending or modifying utility connections
- Reconnecting utility connections
- Constructing a compliant foundation
- Code upgrade requirements not related to state or local floodplain ordinances
- Cost associated with elevating the insured building out of a Special Flood Hazard Area (SFHA)
- Restoring the lawn
- Restoring walks, driveways and other surfaces outside the perimeter exterior walls of the insured
Key features of Biggert-Waters Flood Insurance Reform Act include:
- Extends National Flood Insurance Program (NFIP) through Sept. 30, 2017
- Hazard Mitigation Assistance (HMA) grant programs
- Merges Repetitive Flood Claims (RFC) and Severe Repetitive Loss (SRL) grant programs into Flood Mitigation Assistance grant program
- SRL properties will be funded at 100 percent
- RFC properties will be funded at 90 percent
- All others will be funded at 75 percent
- Adds mitigation reconstruction (demolition/rebuild)
Increased Cost of Compliance Coverage
If your home or business is damaged by a flood, you may be required to meet certain building requirements in your community to reduce future flood damage before you repair or rebuild. To help you cover the costs of meeting those requirements, the National Flood Insurance Program (NFIP) includes Increased Cost of Compliance (ICC) coverage for all new and renewed Standard Flood Insurance Policies.
How much coverage is available?
Flood insurance policyholders in high-risk areas, also known as special flood hazard areas, can get up to $30,000 to help pay the costs to bring their home or business into compliance with their community’s floodplain ordinance.
Four options covered
There are four options you can take to comply with your community’s floodplain management ordinance and help you reduce future flood damage. You may decide which of these options is best for you.
When to file an Increased Cost of Compliance (ICC) claim
You may file a claim for your Increased Cost of Compliance coverage (ICC) in two instances:
If your community determines that your home or business is damaged by flood to the point that repairs will cost 50 percent or more of the building’s pre-damage market value. This is called substantial damage.
If your community has a repetitive loss provision in its floodplain management ordinance and determines that your home or business was damaged by a flood two times in the past 10 years, where the cost of repairing the flood damage, on the average, equaled or exceeded 25 percent of its market value at the time of each flood. This is called repetitive damage. Additionally, there must have been flood insurance claim payments for each of the two flood losses.
For more information on ICC coverage, call your insurance company or agent, or call the NFIP toll-free at 1-800-427-4661