IS-1100.A: Increased Cost of Compliance

After severe flooding, local communities must assess a building’s damage to assure compliance with local floodplain management ordinance provisions. Before building repair or reconstruction is permitted, it may be necessary to require certain measures to reduce future flood damage. Increased Cost of Compliance (ICC) coverage is available under the NFIP Standard Flood Insurance Policy to assist policyholders with the cost to comply with these requirements. This course provides the claims adjuster and insurance agent with the ICC information to assist and guide the policyholder through the mitigation claims process after a flood loss, while collaborating with the local community. Increased Cost of Compliance course provides an overview of ICC coverage and eligibility and takes the learner through the claims process to gain a better understanding of this important coverage benefit.

• Discuss ICC coverage, eligibility requirements, and exclusions
• Define BFE, FEMA-provided ABFE, and Best Available Data
• Define substantial damage determination
• Explain the four eligible ICC compliance activities (FRED)
• Describe the steps a policyholder must take once the community has declared a building as substantially or repetitively damaged
• Describe the steps a policyholder must take before ICC work can begin
• State the timeframe for completing ICC work
• Describe the steps the policyholder must take to obtain an ICC payment
• Identify the documents that are necessary for ICC claim processing and payment
• Identify the responsibilities of the team members who assist a policyholder through the ICC claim process