FEMA  Fact Sheet  ederall Insurance and Mitigation Admnstration increased Cost of Compliance Coverage The National Flood Insurance Program: Building Smarter and Safer  Increased Cost of Compliance (ICC) coverage is one ofseveral resources) forf food insurance policyholders who need additional help rebuilding afer aflood. It provides up to $30,000 to. help cover the cost of mitigation measures that will reduce flood risk. ICC coverage is ai part ofmost standard flood insurance policies available under the Federal. Emergency Management Agency's (FEMA 's) National Flood Insurance Program (NFIP). Reducing Future Damage  floodplain management ordinances. If the total damage from flooding is less than 50j market value oft the building, ICC percent is oft not the Repetitive loss means that a building covered by flood insurance incurred flood-related damage two times over aj period of10 years, and that the cost of thei repairs was, on the average, at] least 25 percent oft the market value oft the building before the damage occurred each time. This applies only if the community has adopted a repetitive loss the local floodplain management ordinance, provision and a in flood insurance claim must have been paid in both cases. The combined damage total must be 50 percent oft the value of the building before damage occurred, but it need: not be evenly the distribut- ed. So, ift the damage was 35 perçent oft the value of thel building in the first event and 15 percent ofthe value of thel building in the second event, the policyholder would qualify forl ICC  available.  coverage  ICC coverage provides payment tol help cover the cost ofmitigation activities that will: reduce the risk of future flood damage to al building. When al building yered by a Standard Flood. Insurance! Policy suffers flood loss andi is declared tol be substantially or petitively damaged, ICC will pay up to $30,000 to uring the building into compliance with State or community floodplain management laws or ordinançes. Usually this means elevating or relocating the building sO that iti is above the base flood elevation (BFE). Non-residential structures: may also be: floodproofed. ICC coverage applies solely to buildings and only covers the cost of the compliance: measures undertaken. Itis filed separately from the normal flood insurance Determining Who is Eligible In addition to being insured under the NFIP, al building must meet one oft two conditions to be eligible to receive ICC coverage; it must havel been either 1) determined to be substantially damaged or 2) meet the criteria ofa ai repetitive loss structure. Substantial damage is the determination by the community that damage due to flood has equaled or exceeded 50j percent oft the value oft the building. When repaired, the building must meet local  I  coverage.  FINDING OPTONALPOACPHOUDER FEMA encourages flood insurance policyholders whase homes are damaged extensively, by flood toask tneir claims adusters or msurance agents about GC People can get more mormation online at htp/www.iema Mewecorias/e-s010 GovAibrary or by caling theiri insurances agents.  INFORMATION  claim.  coverage  National Elood Insurance Program  FEMA's missioni is to support ouro citizens and frst responders to ensure that asar nation we work together toi buila, sustain, and our  to, recover from, adi mitigate d! hazards."  Improre capability to prepare! for, protect aquinsi, respond    Mitgation dmnstra  Meeting Compliance Standards _Ccoverage can help pay for four different types of ith the community's floodplain management Elevation is the most common means ofreducing: a building's flood risk. Thej process consists ofraising onlyrequires the lowest floor ofthe building to be raised to the BFE, some States and communities enforce a freeboard". requirement, which mandates community's flood protection level. Floodproofing applies only to non-residential be substantiallyi impermeable to water and designed to1 resist the stresses imposed by floods. Floodproof- ing techniques include installation ofwatertight shields for doors and windows; drainage collection systems, sump pumps, and check valves; reinforce- ment of walls to withstand floodwater pressures; use ofsealants to reduce seepage through and around walls; and anchoring the building toi resist flotation, collapse, and lateral movement. Relocation involves moving the entire building to another location on the same lot, or to another lot, usually outside the floodplain. Relocation can offer the greatest protection from future flooding; however, ift the new location is still within the Special Flood Hazard Area (SFHA), the building must bel NFIP- compliant, meaningi it must be elevated or floodproofed (fnon-residential). Demolition. may bei necessary in cases where damage ist too severe to warrant elevation, floodproofing, or relocation; or where thel building is in such poor condition that iti is not worth thei investment to undertake any combination of the above activities. All applicable permits must be obtained prior to demolishing thel building. The property may be redeveloped after demolition is complete, subject to all applicable Federal, State, and community laws  Using ICC in Concert with FEMA  Mitigation Grants  itigation activities to bring a building into compliance Ins some cases, individual policyholders can take  advantage of] Federal grant money to supplement the cost ofr mitigation activities. Policyholders can assign their) ICC benefits tot their community and enable the community to file a single claim on behalfo ofa community mitigation project. FEMA will count the applying for mitigation grants, because ICC coverage isa direct contract between the policyholder and the insurer. The community can then use FEMA mitigation cost ofe elevation, floodproofing, relocation, or demolition that is more than the ICC claim payment. this process. Individual participation in al FEMA-funded community mitigation project is voluntary and the communityi is required toj provide mitigation funds to any property owner whose ICC payment was counted  regulations:  thel building to or above the BFE. While NFIP policy ICC claim monies as non-Federal matching funds when  that thel building be raised above thel BFE to meet the grant funds to help pay for any additional portion ofthe buildings. For al building to be certified as floodproof, It is extremelyi important for policyholders and commu- itmust be watertight below the BFE - the walls must nity officials to work closely together at every stage of  towards the matching funds.  ForMore Information  For Obtain more mformation on CG coverage Vsit nipl wenal poMIEaNVMCPRecOn do2d-3010  and requirements.  "FEMA'smission is tos support our citizensa and first responders to ensure that asar Dation wev work togethert tol bnili, sustoin, and Improve ouro capability top prepare for, protecta against, respond  to, recover from, aadi mitigate dl haards."