Everything you need to know to submit an ICC claim is covered in this tutorial, including eligibility, supporting evidence, and how to steer clear of expensive errors that can compromise your reward. Take a look at this homeowner’s survival guide for a complex yet potentially transformative financial protection.
ICC Insurance: What Is It?
Your flood insurance policy’s Coverage D includes Increased Cost of Compliance (ICC) coverage, which helps cover the cost of repairing, raising, tearing down, or moving a flood-damaged building to comply with your community’s current floodplain requirements. ICC can give up to $30,000, however it only applies if you have building coverage (Coverage A).
Your total payout (Coverage A + D) cannot be more than $250,000 for residential buildings or $500,000 for commercial properties. This payment is in addition to your building coverage.
Are You Eligible to File an ICC Claim?
In order to be eligible for an ICC insurance claim:
Your property must be formally declared “seriously damaged” by flood by your town, which means that repairs will cost at least 50% of the home’s pre-damage market value, or
Within the last ten years, you must have experienced multiple flood losses exceeding fifty percent of the value of your house, and your house must not meet the base flood elevation (BFE) regulations set forth by your municipality.
Important: Wait until your insurance company verifies that you qualify for ICC coverage before beginning any elevation or demolition work. This could jeopardize your claim.
How Much Coverage Is Available Under ICC?
The following examples illustrate how much you can truly claim:
Example 1: Your flood claim brings in $240,000. Only $10,000 is left available under ICC because total claim payments are limited at $250,000.
The entire $30,000 ICC benefit is yours to keep.
Example 3: Your ICC claim is limited to $10,000 if you have paid a contractor $10,000 to demolish your house and you have all the necessary paperwork.
Example 4: You spend $35,000 to upgrade your house. The only $30,000 covered under the ICC policy.
Example 5: You raise your home to 14 feet when the neighborhood only needs 10. Only the expense of getting to the minimal elevation needed will be covered by ICC. You are responsible for any excess.
Documentation Needed for an ICC Claim
To back up your ICC claim, you will need thorough paperwork, regardless of whether you are elevating or demolishing. What you will need is as follows:
Regarding Demolition:
Significant harm A letter from your neighborhood
The house was below BFE at the time of the loss, according to the elevation certificate.
Permit for Demolition
Contractor Estimate with Items (signed by both you and the contractor)
A picture of the house prior to demolition
Your municipality’s tax assessment
Ordinance for Floodplain Management
A letter of completion from the local government
Date-Stamped A cleared lot photo that needs to be mailed rather than faxed
For Elevation: Your community’s letter of substantial damage
Elevation Certificate or comparable records
Permit for Construction
Elevation work itemized estimate (line-by-line with pricing)
Ordinance for Floodplain Management
Certificate of New Elevation
Front, rear, and side photos of the finished elevation must be mailed.
What Covered Elevation Costs ICC Will and Will not Pay:
raising the house and placing it on a new, legal foundation
The original foundation’s demolition
Each external access point has one staircase plus a 16-square-foot landing.
Elevation of utilities to the new first floor
Non-structural garage elevations or non-essential slabs are not covered.
Porches or decks larger than 16 square feet (unless listed and priced)
Utility additions that are horizontal or subterranean
Landscapes or ornamental elements
Due dates and upfront payments
