Funds Available for Midwest Flood Insurance Policyholders to Rebuild Higher

July 30, 2008

Flood insurance policyholders rebuilding in the wake of the June severe storms and flooding in he Midwest may be eligible for up to $30,000 to help cover the cost of bringing their property into compliance with local floodplain ordinances.

Policies issued since June 1, 1997 as part of the National Flood Insurance Program (NFIP) contain an Increased Cost of Compliance (ICC) provision. This coverage is for structures located within a floodplain, also known as Special Flood Hazard Area, which have sustained substantial or repetitive flood damage.

The Federal Emergency Management Agency, which manages the NFIP, makes these funds available to policyholders who build higher and/or stronger in order to reduce the risk of future flood damage.

Flooding is the most costly natural disaster in the United States and about 25 percent of all flood damage occurs outside of mapped floodplains. Yet, less than 2 percent of Illinois homeowners have purchased flood insurance.

FEMA said it hopes that the ICC coverage will help encourage more property owners without flood insurance to buy now.

Property owners living in participating NFIP communities can purchase flood insurance through most major insurance carriers who sell homeowner’s or business policies. There is a 30 day waiting period for all policies to take effect.

Contact the National Flood Insurance Program by calling 1-800-427-4661 or people who are speech- or hearing- impaired who have TTY equipment can call TTY 1-800-427-5593.

Was this article valuable?

Here are more articles you may enjoy.