As Coloradans learned in September 2013, heavy rains along the Front Range can lead to extensive flooding. And, as many people have learned, recovering from floods can be a difficult task.
Now as the weather warms, state and federal officials are keeping a wary eye on snow melt and the potential for spring rains.
As part of their preparations, officials continue to urge flood insurance policyholders to make sure they understand what provisions are in their coverage. One part of the policy that might be especially important is the Increased Cost of Compliance (ICC).
NFIP policyholders who are rebuilding after 2013 flood may be eligible for up to $30,000 in ICC funds to cover the cost of bringing the home or business into compliance with local floodplain ordinances. ICC coverage is included as a part of the Standard Flood Insurance Policy.
To be eligible for ICC coverage, the community floodplain administrator must determine that a building has been “substantially damaged,” or sustained “repetitive damage.”
A building is considered to be substantially damaged when the total cost of repair equals or exceeds 50 percent of its pre-disaster market value.
A building is considered to have sustained repetitive damage when it has been damaged by floods twice over a period of 10 years, and the cost to repair the damage, on average, equals or exceeds 25 percent of its market value at the time of each flood event. This applies only if the participating community has a repetitive loss provision in their floodplain management ordinance, and an insurance claim payment is made for each of the two flood losses. To find out if your community has a repetitive loss provision, contact local officials or your insurance company.
To make an ICC claim, owners may decide to
• Elevate: Raise a home to or above the flood elevation level adopted by a community;
• Floodproof: Make a building watertight through a combination of adjustments or additions of features to the building that reduces the potential for flood damage;
• Relocate: Move a home out of harm’s way; or
• Demolish: Tear down a flood-damaged building.
Claims for ICC benefits are filed separately from contents or building loss claims. A claims representative will be assigned to help prepare the ICC claim.
For more information on flood insurance or ICC coverage, visit floodsmart.gov or call 1-888-379-9531. Remember that NFIP policies go into effect 30 days after purchase. The time to buy is now.