Flood Victims Covered Under NFIP May Be Eligible for Extra Assistance

The Federal Emergency Management Agency (FEMA) has issued a statement saying that New Jersey residents covered under the National Flood Insurance Program (NFIP) whose homes or businesses have been damaged may be eligible for up to $30,000 in additional assistance. 

The benefit, called "Increased Cost of Compliance," or ICC coverage, is part of most NFIP policies. Before you repair or rebuild your flood-damaged property, your community may require that you meet certain building requirements in order to reduce future flood damage. To help cover the increased costs associated with complying with local floodplain ordinances, the NFIP includes ICC coverage for all new and renewed Standard Flood Insurance Policies.

As Sgt. Michael Gallagher from the mitigation unit of the N.J. Office of Emergency Management (NJOEM) said during with New Milford residents, only local officials can designate buildings damaged by one or multiple floods as being substantially damaged or repetitive flood properties. If a property is designated as such, the policyholder would then be required to use flood-safe practices when rebuilding, which generally means elevating or moving the structure. In a situation like this, up to $30,000 may be available to pay for mitigation techniques to reduce future flooding risks.

FEMA advises flood victims seeking ICC assistance to apply on a separate form that can be obtained from your NFIP agent. The money may be used to elevate, demolish or relocate the damaged structure. The total insurance payout, including ICC coverage, cannot exceed $250,000 for a residence or $500,000 for a non-residential structure. Non-residential structures may use only ICC funds for flood-proofing.

For further information, contact your local flood insurance agent.