Flood Insurance: Increased Cost of Compliance Coverage

Flood Insurance: Increased Cost of Compliance Coverage

What happens in the event a building sustains substantial damage from a flood, and the inhabitants are required to meet certain building requirements in their community to reduce future flood damage before they repair or rebuild? To cover the costs of meeting those requirements, the NFIP includes Increased Cost of Compliance (ICC) coverage for up to $30,000 for all new and renewed standard flood insurance policies. This amount is included in the maximum flood payout of $250,000.

When a building covered by a Standard Flood Insurance Policy sustains "repetitive losses" or "substantial damage" caused by flood, the NFIP will pay up to $30,000 for losses sustained on or after May 1, 2003, for the cost to elevate, floodproof (for nonresidential buildings only), demolish, or relocate the building, or any combination thereof, when any of these actions are undertaken to comply with the enforcement of state or local floodplain management laws or ordinances.

ICC coverage is available on residential and nonresidential buildings (this category includes public and government buildings, such as schools, libraries and municipal buildings) insured under the SFIP. The maximum amount collectible under the SFIP for both the ICC payment and the direct loss payment for flood cannot be greater than the maximum limits of coverage for that class of buildings authorized under the National Flood Insurance Act of 1968, as amended. The maximum limit available of flood insurance builiding coverage are $250,000 for residential buildings and $500,000 for nonresidential buildings. For a residential condominium building, the maximum limit available of flood insurance building coverage is $250,000 times the number of insured units.

Flood Insurance: What does your flood policy cover in your basement?

Flood Insurance: What does your flood policy cover in your basement?

Gov. Malloy signs concrete bill

Gov. Malloy signs concrete bill