ICC (Increased Cost of Compliance) is an added assistance offered by NFIP for those who are living in SFHA (Special Flood Hazard Area). It is a separate service offered by NFIP to those home owners whose houses were significantly damaged during a flood. They will qualify for ICC and can avail additional assistance from the NFIP of up to $15,000. This financial assistance is given for home renovation or additional options that can be given by NFIP.

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Options Offered by NFIP

The NFIP could provide the following option for the homeowners after receiving the compensation on ICC:

• Elevation – The homeowner will be assisted in elevating the home to a significant level. This level is usually higher than the recommended level advised by the community.

• Demolition – The house will be demolished and will be rebuilt with flood prevention measures.

• Relocation – The homeowner will transfer to another area to prevent the same disaster from happening.

• Flood proofing – Usually available for business structures, this type of assistance from NFIP involves extensive adjustments in the structure to prevent the same damages on the next flood.

The assistance is usually enforced by NFIP within the 2 year frame. It could take that long especially when the area hit by the flood is very extensive.

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ICC Claim Requirements

The community could claim ICC assistance when any of the following events happen:

1. It was determined that the damage to the property is equal or more than 50% of the cost of the property in the market before the flood happened. The market value often goes down before the naturally calamity happened so that the market value before the flood happened is used to determine if the community qualifies for ICC assistance. The community itself could determine if the damage does exceed 50% of the market value.

2. Repetitive loss – In case of repetitive damages if occured within a span of 10 years, the community can seek ICC assistance even if the damage is only 25% or more of the market value of the property. The market value of the area is already low so obtaining ICC assistance for repetitive damages is easy. However, an agent will still check if the declaration by the community is true. Aside from the ICC, home owners should also receive insurance assistance from their individual insurance companies.

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Filing ICC

ICC should be filed separately from the NFIP insurance. The reason for this is that the community would still have to convene and determine the loss and damages in properties. This could take a week or two and the NFIP insurance could be applied for after a day or two after the flood. Once the community determines that it could qualify for an ICC, the community contacts the NFIP wherein a representative will check the area and determine the validity of the declaration. After the declaration has been verified, the NFIP will make the necessary preparation for homeowners and business owners who would want to elevate, demolish, relocate or foolproof their structures.