What is Increased Cost of Compliance (ICC) Coverage?

ICC coverage is funding that a policyholder may qualify for to rebuild after a flood.

If qualified, the policyholder can receive up to $30,000 to bring their home into compliance with new or updated local or state floodplain standards.

National Flood Insurance Program (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);
Their property 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.

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