Flood Victims with Insurance Could Get Additional Aid
By
Cassie Huisman
Story Created:
Jul 16, 2008 at 10:29 AM CDT
Story Updated:
Jul 16, 2008 at 10:29 AM CDT
DES MOINES — Victims of Iowa flooding who had flood insurance on their damaged buildings may be eligible for up to $30,000 in additional aid. The money can be used to make their homes or businesses safe from future floods.
If a building has been severely damaged or repeatedly flooded, it may be designated by the local building department as “substantially damaged” or a “repetitive loss property.” The policyholder is then required to rebuild it in a flood-safe way, which usually means elevating or moving the structure. This is where the extra funds, up to $30,000, may kick in to pay for future risk reduction.
The benefit is called “Increased Cost of Compliance” or ICC coverage, because it helps pay for the increased cost of complying with the building code. It is a part of most National Flood Insurance Progam policies.
“Substantial damage” must be judged by local officials to have been caused by flooding and must equal 50 percent or more of the pre-disaster market value of the structure. Similarly, local officials may declare a building as a “repetitive loss property” if it has suffered two or more flood losses over 10 years. The cost of repair for each flood on the average must have equaled or exceeded 25 percent of the market value of the building before the damage occurred or a cumulative of over 50 percent. In addition, for ICC to be available there must be a community ordinance that contains a repetitive loss clause.
Flood victims seeking ICC aid need to apply for it on a separate form, which they can obtain from their insurance agent. The money can be used to elevate, flood-proof, demolish or relocate their damaged structure. The total insurance payout including ICC coverage cannot exceed $250,000 for a resident or $500,000 for a non-residential structure.
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Thursday, Jul 17 at 1:46 PM Tina Fleischacker wrote ...
Yes, we have been paying for the ICC coverage within our flood insurance premium for the last 12 years. We are in flood zone B, so we are not eligible to receive it. The premiums for ICC are low and I was told that is why there is a clause about what zones are eligible to receive the ICC monies. Where do u think FEMA gets a portion of their money from....? that would be from the flood insurance people have been paying.
Wednesday, Jul 16 at 4:00 PM Anonymous wrote ...
To call this "aid" is a misnomer. The insured pays for this coverage as a part of their insurance premium. It's not like FEMA is jumping in and doing these people a favor by providing aid over and above their policies-- the insured was paying for it all along.
Wednesday, Jul 16 at 1:31 PM Julie in Check Village wrote ...
I have flood insurance to cover my mortgage only. If the city waits 18 months to 2 years for the mitigation money from the Federal Government, do I continue to pay flood insurance on my dilapitated house in the 100 year flood plain? I don't ever want to live near the river again.However, I want the ICC to kick in if I am responsible for the demolition.
Wednesday, Jul 16 at 1:25 PM good wrote ...
sounds like a nice reward for making a positive choice to pay for flood insurance
Wednesday, Jul 16 at 1:05 PM Anonymous wrote ...
OUCH TO THE UNINSURED WHAT A BURNNNNNNNNNNNNNNNNNNNN
Wednesday, Jul 16 at 11:29 AM what? wrote ...
So if you dont have insurance you get a maximum of $28,400, and if you have insurance you can get $30,000?
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