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What is Increased Cost of Compliance (ICC) Coverage?

ICC coverage is included under the National Flood Insurance Program (NFIP) Standard Flood Insurance Program (SFIP). ICC provides up to $30,000 to NFIP policyholders to help with the costs if they are required to meet floodplain standards after a flood. 

View down a flooded suburban street

NFIP policyholders may qualify for ICC coverage if:

  • They have a Standard Flood Insurance Policy (SFIP);

  • Their building is in a Special Flood Hazard Area (SFHA);

  • The flood damage to the building is equal to 50% or more of the pre-flood market value; 

  • Their building is determined by the community building official to be substantially or repeatedly damaged by floods; and

  • They have not reached the NFIP’s $250,000 payment limit.

Giving ICC Funds to the Community

A policyholder can choose to give their ICC claim payment to their local community, instead of using it themselves.

The community would use this funding for larger flood recovery or improvement projects the homeowner would benefit from.

Here is how the process works:

  • The policyholder signs a form called the Assignment of Coverage Disclosure, that hands their ICC payment rights over the community.

  • The local official then forwards that form to FEMA/NFIP, along with a Substantial Damage Notice.

  • Once FEMA receives both documents, they will verify the submission and then send the appropriate documents to the Write Your Own (WYO) Company and/or Vendor.

  • The WYO Company and/or Vendor will then contact the local community official to begin investigating the claim.

Additional Resources

Contact NFIP Claims with questions

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