National Flood Insurance Program 

Increased Cost 

of Compliance 

Coverage

Creating a Safer Future 

ICC Helps to Ensure a 

Safer Future

John Smith’s 

$110,000 home 

was flooded by 

Tropical Storm 

Allison so badly 

that the repair 

estimate totaled 

$63,525. After 

receiving the 

estimate, John and the local building official 

decided that elevating his home was the best 

way to meet the floodplain ordinance and pre-

vent future damages. 

John’s agent filed an ICC claim after he 

obtained a proof of loss, a detailed repair esti-

mate, and a substantial damage declaration 

on John’s home. To start the project, Allright 

Insurance Company gave John $10,450 

(half the total cost of elevation) to begin the 

elevation of his home; the final payment of 

$10,450 was paid after the work was 

completed.

For more information on ICC coverage, 

call your insurance company or agent, 

or call the NFIP at 1-800-427-4661. 

Also, visit FEMA’s Web site at http://www.fema.

gov for valuable 

guidance to help you reduce losses from future 

floods, fires, and other disasters.

For more information on Flood Insurance go to

http://www.floodsmart.gov. 

F-663 (03/07)

Reduce Future 

Flood Losses

Comply with your 

community’s building 

codes and floodplain 

ordinances to reduce 

future flood losses. You 

can use ICC to help 

pay for any of these 

mitigation solutions: • Elevating above the 

flood level in your 

community. 

• Relocating to a new 

site. 

• Demolishing the 

building. 

• Floodproofing (nonresidential buildings 

only). 

Ask community 

representatives to 

help you package 

ICC benefits with 

disaster and mitigation 

assistance grants, lowinterest Small Business 

Administration loans, or 

other Federal funds to 

help build a safer future 

for you and your family.
Flood Insurance Includes 

an Additional Way to Help 

You Rebuild.

Increased Cost of Compliance, or ICC, coverage 

is part of most Standard Flood Insurance Policies. 

Claims for ICC benefits are filed separately from 

your claim for contents or building loss. 

If eligible, you can collect up to $30,000 to help 

cover the cost of bringing your home or business 

into compliance with floodplain ordinances. If 

your building has been repeatedly or severely damaged by flooding, your local floodplain ordinances 

may require you to make changes to the property. 

You can use ICC benefits to help pay for these 

required improvements.

Are You Eligible to File 

an ICC Claim? 

You are eligible to file for ICC if your community 

floodplain administrator determines one of the following: 

• Your property is “substantially damaged.” This 

means that your community says the cost to 

repair your flooded building is 50% or more 

of its pre-disaster market value. 

• Your property sustained “repetitive damage.” 

This term applies to homes or businesses that 

were damaged by flooding twice in the past 

10 years, where the cost of repairing the flood 

damage, on average, equaled or exceeded 25% 

of the property market value at the time of 

each flood. Also, there must have been flood 

insurance claim payments for each of the two 

flood losses, and the community’s floodplain 

management ordinance must have a repetitive 

loss provision. 

Increased Cost of Compliance Claim Process

1 Report flood loss to insurer.

4 Provide the building department’s written determination of substantial damage 

or repetitive loss to the 

adjuster.

6 Obtain a signed contract 

that details costs to perform the mitigation activity 

and give it to the claims 

representative.

8 Provide Proof of Loss 

and copy of community 

permit(s) to the adjuster 

in order to receive the first 

portion of the ICC claim 

money.

10 Complete the mitigation 

measure within 2 years 

from the date of loss.

12 Provide a copy of 

Certificate of Occupancy to 

the insurer.

2 Estimate flood damage and 

tell policyholder he/she 

may be eligible for ICC benefits.

5 Set up an ICC claim file:

Obtain damage and market 

value information on building from policyholder. For a 

repetitive loss building, get 

previous claim information. 

Verify that the flood-related 

damage for the current 

building claim supports 

community information.

7 Provide Proof of Loss form 

to the policyholder for a 

partial payment.

9 Provide initial ICC claim 

payment to the policyholder.

13 Make final ICC claim 

payment upon receipt of 

Certificate of Occupancy.

3 Determine building “substantially damaged” or a 

“repetitive loss.” Provide 

written determination to 

policyholder.

Discuss mitigation options 

that will comply with floodplain regulations.

Issue necessary building 

permits for mitigation measures.

11 Inspect completed mitigation work and issue a 

Certificate of Occupancy or 

other written evidence that 

the work is compliant with 

floodplain management 

ordinances.

Policyholder Adjuster/Claims Representative Local Building Department

Note: When participating in a community-sponsored, FEMA-funded mitigation project, the policyholder may assign ICC benefits to the community to integrate into the project. 

The community then becomes responsible for submitting all of the appropriate paperwork.

Sequence of events may vary.