An Understanding of the Guidelines for Increased Cost of Compliance (ICC) Funds
by Burk Brokerage Real Estate

To qualify for ICC money, you must qualify as a “substantially damaged” claim under FEMA guidelines, meaning that you must comply with all of the following:

1. POLICY: A flood insurance policy had to have been in force at the time of the flood.

2. FLOOD MAP:  The flooded property must be in an A or V flood zone.

3. BASE FLOOD:  The lowest point of your living area in your home must be below the current base flood elevation – BFE.

4. DAMAGE ASSESSMENT:  The cost to repair your flooded home must exceed 50% or more of its pre-disaster “sticks and bricks” value which does not include land value or movable contents.

5. LIMIT: The limit for ICC funds is $30,000.  In addition, there is a cap of $250,000 for total payout on the flood policy including any ICC proceeds (contents and add on riders do not factor into this limit).

You can transfer your flood policy and the ICC claim rights to a purchaser as long as the policy is still active, but the claim must be made within two (2) years of the flood.

If you cancelled your policy after the storm, you can still file an ICC claim within two (2) years of the flood as long as you own the property.  You cannot transfer a cancelled or lapsed policy to a new buyer and there are no longer any rights to the ICC money after a cancelled or lapsed policy property is sold.

The money can be used to raise your current structure to comply with the current BFE or to demolish and establish a new foundation that complies.

If you qualify for this money, it is usually quickly funded. There may be conditions and participation

For more information, contact the National Flood Insurance Program, at (800) 638-6620