F-300 Revised 12/12

National Flood Insurance Program 

Increased Cost 

of Compliance 

Coverage

How You Can Benefit

If your building 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.

The National Flood Insurance Program 

(NFIP) Standard Flood Insurance 

Policy (SFIP) provides Increased 

Cost of Compliance (ICC) coverage, 

which may be available to help 

cover the costs of meeting those 

requirements, subject to eligibility. 

For more information, contact your 

insurance agent and refer to Section 

III, Coverage D of your SFIP.

For more information about the 

NFIP and flood insurance, call 

1-800-427-4661

or contact your 

insurance company or agent. 

For an agent referral, call 

1-888-435-6637

Also, visit FEMA’s website at

www.fema.gov

for valuable guidance to help you reduce losses 

from floods, fires, and other disasters.
How Much Coverage Is Available

If eligible, National Flood Insurance Program 

(NFIP) policyholders may receive up to $30,000 

of Increased Cost of Compliance (ICC) coverage 

to help pay the costs to bring their building into 

compliance with their community’s floodplain 

ordinance. The coverage availability and payment 

limits are subject to the terms of the Standard 

Flood Insurance Policy (SFIP) and maximum 

coverage limits, including all applicable NFIP 

rules and regulations.

Filing an ICC Claim

You may be eligible to file a claim for your ICC 

coverage in two instances:

1. When your community determines that your 

building is “substantially damaged”, wherein 

the cost to repair or improve the structure 

exceeds its market value by a threshold amount 

adopted by law or ordinance. Community 

building officials are responsible for the 

issuance of substantial damage declarations.

2. When your community has a “repetitive 

loss” provision in its floodplain management 

ordinance and determines that your building 

was damaged by a flood two times in the 

past 10 years, where the cost of repairing the 

flood damage, on average, equaled or exceeded 

25 percent of its market value at the time of 

each flood.

How to File an ICC Claim

If your community does determine that your 

building 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 your insurer or insurance 

agent to file an ICC claim. The insurer will assign 

a claims representative who will help you prepare 

your ICC claim. The ICC claim will be adjusted 

separately from the flood damage claim you file 

under your SFIP. You should start getting 

estimates from contractors to take the necessary 

steps to F.R.E.D. – floodproof, relocate, elevate, 

or demolish.

How Your ICC Claim Is Processed

You may be able to receive a partial payment 

once the claims representative has a copy of the 

Increased Cost of 

Compliance Coverage

signed contract for the work, a permit from the 

community to do the work, and your signed ICC 

Proof of Loss. If the work is not completed within 

the required time frame, you must return any 

partial payment to your insurer.

When the work is completed, local officials 

will inspect it 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.

It’s important to remember, only policyholders 

with substantially or repetitively flood-damaged 

buildings may be eligible for ICC coverage. ICC 

helps pay for the costs of meeting the floodplain 

management requirements adopted by law or 

ordinance in your community. Any item paid for 

in the original flood damage claim cannot be 

duplicated in the ICC payment.

Four Options Covered: Floodproofing, Relocation, Elevation, or Demolition (F.R.E.D.)

There are four options you can pursue to comply with your community’s floodplain management ordinance and help 

reduce future flood damage to your building. You may decide which of these options (F.R.E.D.) is best for you.

3. Elevation. This raises your building to 

or above the flood elevation level adopted by 

your community.

4. Demolition. This tears down and 

removes flood-damaged buildings.

1. Floodproofing. This option is available 

primarily for non-residential buildings. It 

involves making a building watertight through 

a combination of adjustments or additions 

of features to the building that reduces the 

potential for flood damage.

2. Relocation. This moves your building 

out of harm’s way.