Last updated: June 3, 2026
Your house flooded, the local building office says you cannot just put it back the way it was, and the normal flood insurance claim may not cover the extra cost to elevate, move, demolish, or otherwise bring the building up to flood rules.
That is the problem Increased Cost of Compliance coverage is meant to help with. It is usually called ICC. It is not a separate grant application. It is not a promise that all rebuilding costs will be paid. It is a limited part of many National Flood Insurance Program policies that may help after a flood if your local community says your building has major or repeated flood damage and must meet current floodplain rules.
Quick answer
ICC coverage may provide up to $30,000 to help an eligible NFIP policyholder pay for required flood-compliance work after a flood. FEMA’s Rebuild Better page says qualifying policyholders may use ICC for work such as elevating, relocating, demolishing, or floodproofing a property. Floodproofing is for non-residential buildings, not homes.
The key point is this: your flood insurance company does not decide by itself that your home is substantially damaged. Your local building official or floodplain administrator usually has to issue a written determination. The NFIP agent resource on ICC claims says the building must be in a Special Flood Hazard Area, have a Standard Flood Insurance Policy, be determined by the community official to be substantially or repeatedly damaged by floods, and not have reached the applicable NFIP payment limit.
For many homeowners, ICC helps with only part of the gap. Elevating a house, moving utilities, rebuilding stairs, lifting HVAC, or demolishing a damaged structure can cost more than $30,000. Treat ICC as one possible source, not the whole recovery plan.
Handle safety before paperwork
If water is still entering the home, the power is unsafe, you smell gas, the building is shifting, sewage is present, or anyone has trouble breathing, leave the unsafe area and call 911, the utility emergency line, or local emergency management first. Do not wait for an adjuster before protecting people.
After floodwater drops, take photos and videos before moving items if you can do that safely. The NFIP’s start a claim guidance tells policyholders to report the loss quickly, document flood-damaged property, keep samples of damaged flooring or materials when useful, and begin cleanup when it is safe. EPA’s flood cleanup guidance explains why wet materials and floodwater can create health risks from mold, bacteria, and other contaminants.
The fastest realistic starting points
ICC has two tracks running at the same time. One track is your regular flood insurance claim for direct flood damage. The other is the local code and permit track. You need both.
- Call your flood insurer or agent. Report the flood loss right away. Ask whether your policy is an NFIP Standard Flood Insurance Policy and whether you have building coverage.
- Ask about ICC in writing. Say that your home may be substantially damaged and ask what documents the insurer needs to open a separate ICC claim.
- Contact the local building office. Ask for the floodplain administrator, building official, or code office handling substantial damage determinations.
- Do not sign a major rebuild contract yet. Emergency cleanup is different from reconstruction. Ask the building office what permits and flood-elevation rules apply before rebuilding.
- Keep a simple claim folder. Save the policy declarations page, claim number, adjuster name, damage photos, local letters, permits, estimates, contracts, and every email.
| What is happening | Who to contact first | What to ask |
|---|---|---|
| You have flood damage but no local letter yet | Flood insurer and local building office | “Has my property been reviewed for substantial damage, and should I open an ICC claim?” |
| You received a substantial damage letter | Flood insurer, then permit office | “What work is required before permits can be issued, and what ICC forms do you need?” |
| The home is in a high-risk flood zone | Local floodplain administrator | “What elevation, freeboard, foundation, utility, and access rules apply to my address?” |
| You cannot afford elevation or demolition | Local recovery office, 211, housing counselor | “Is there a buyout, elevation grant, CDBG-DR, local repair program, or legal aid referral?” |
Who may qualify for ICC
Most homeowners should check these points before relying on ICC. A “yes” to one point is not enough. The insurer and the local official both matter.
- You had NFIP flood insurance with building coverage. Federal rules at 44 CFR Part 61 state that with the purchase of building coverage, the Standard Flood Insurance Policy covers costs tied to bringing the building into compliance with local floodplain ordinances. Contents-only coverage is not enough for work on the structure.
- The building is in a Special Flood Hazard Area. These are the higher-risk flood zones shown on FEMA flood maps. You can review flood map information through FEMA’s map service, but your local floodplain office should explain the rule that applies to your permit.
- The local official says the building is substantially damaged or repetitively damaged by flood. FEMA’s public ICC guidance uses the 50% test for substantial damage: repair cost is at least 50% of the building’s pre-damage market value. It also describes a repeated flood damage path where the building flooded twice in 10 years and each repair cost reached at least 25% of value.
- Your community has adopted and enforces floodplain rules. NFIP participation depends on local communities adopting and enforcing floodplain management rules. FEMA’s local resources page explains the role local officials play in managing flood risk.
- You have not already reached the policy’s legal payment cap. For most one-to-four-family residential NFIP policies, the building limit is up to $250,000. The NFIP’s coverage limits page lists the common residential and non-residential maximums. ICC does not let the total payment go above the applicable limit.
Local rules can be stricter than the federal minimum. A city, county, parish, town, or tribe may use a higher safety standard, require freeboard above base flood elevation, count cumulative improvements, or require extra documentation before issuing permits. Ask for the rule in writing.
What ICC may help pay for
ICC is aimed at mitigation. That means work that lowers future flood damage risk and helps the building meet floodplain rules. It is not a general remodeling fund.
| Possible ICC use | Plain-English meaning | Important limits |
|---|---|---|
| Elevation | Raising the building so the lowest required floor is above the required flood level. | Often expensive. Must match local permit and engineering rules. |
| Relocation | Moving the building to a safer place on the lot or to another site. | May need land, utility, zoning, and foundation approvals. |
| Demolition | Tearing down a substantially damaged building when rebuilding is not allowed or not practical. | Debris, utility disconnects, asbestos, and permits may add cost. |
| Floodproofing | Making a building watertight below the required flood level. | For non-residential buildings only under FEMA’s ICC guidance. |
| Combination work | Using more than one approved mitigation method. | The total ICC payment is still capped at the policy and ICC limits. |
What ICC usually does not solve
ICC is easy to misunderstand because the name sounds broad. It is not broad. It does not pay for every code upgrade, every contractor bill, or every item FEMA or your city wants you to fix.
- It does not pay for damaged furniture, clothing, appliances, or personal belongings.
- It does not replace the regular building-damage claim.
- It does not pay above the ICC limit or above the applicable NFIP building coverage cap.
- It does not remove the need for permits, inspections, elevation certificates, engineering plans, or local approvals.
- It does not guarantee that your home can be rebuilt in the same footprint.
- It does not apply to a private flood policy unless that private policy has its own similar coverage. Ask the private insurer directly.
How the ICC claim usually works
The exact steps can vary by insurer and disaster, but the path often looks like this.
- Report the flood loss. Start the normal flood insurance claim with your insurer or agent. Ask for the claim number and adjuster contact information.
- Get the local determination. Ask the building office whether the structure is substantially damaged or repetitively damaged by flood. If it is, ask for the written letter.
- Ask what compliance work is required. The local official should tell you what the building must do to meet the floodplain ordinance before permits are approved.
- Get estimates and a contract. Use contractors who understand floodplain work. Elevation, foundation, utility, and demolition work often require special licenses or engineering.
- Submit ICC documents. The FloodSmart ICC page says an ICC claim is separate from the flood insurance claim and may require a local damage letter, permit, signed contractor contract, and ICC Proof of Loss form.
- Finish and prove the work. The insurer may need a completion letter, final inspection, certificate, paid invoices, or other proof before releasing the remaining payment.
FEMA’s public claim forms page includes NFIP policyholder forms, including Proof of Loss forms and an appeal form. Ask your insurer which version is needed for your claim before you submit it.
FEMA’s ICC guidance also says a qualifying policyholder may receive up to a $15,000 advance after submitting required documents such as the signed contract, permit, and ICC Proof of Loss. Do not spend an advance on unrelated repairs. If the eligible work is not completed or approved, you may have to repay money.
Call script: flood insurer or agent
“My property flooded and I have opened, or need to open, an NFIP flood claim. I am also asking about Increased Cost of Compliance coverage. Can you confirm whether I have building coverage under an NFIP Standard Flood Insurance Policy, give me the claim number, and tell me exactly what documents you need for an ICC claim?”
Call script: local building office
“My address had flood damage. I need to know whether the building will be reviewed for substantial damage or repetitive flood damage. Who is the floodplain administrator for this property, what documents should I send, and can I get the determination and permit requirements in writing?”
Call script: contractor
“Before I sign anything, I need to know whether your estimate separates regular flood repair from flood-compliance work such as elevation, demolition, relocation, utility elevation, foundation work, or floodproofing. Have you handled NFIP ICC documentation and local floodplain permits before?”
Why the local office matters so much
Many people call FEMA first and get frustrated. For ICC, the local office often controls the key trigger. The building department, permit office, floodplain administrator, parish, county, town, city, or tribal government may inspect damage, compare estimated repair cost to pre-damage building value, and decide whether floodplain compliance is required.
Ask the local office for the specific value and repair-cost method it uses. Some places use tax assessment data, appraisals, contractor estimates, or FEMA substantial damage software. Some count cumulative repairs or improvements over a set period. Some require an elevation certificate. Some require all utilities, HVAC, electrical panels, and living space to meet elevation rules.
If you do not know whether your community participates in the NFIP, FEMA’s Community Status information can help you start, but your local government is still the best place to confirm current permit rules. If you cannot find the right office, ask your county emergency management agency, planning department, or 211.
Common mistakes that can cost time or money
- Starting major reconstruction too soon. Cleaning out wet materials may be needed, but rebuilding walls, floors, utilities, or foundations before permits can create problems.
- Assuming a FEMA disaster grant is the same as ICC. ICC is tied to an NFIP flood policy. FEMA disaster assistance is a separate program and may have separate rules.
- Forgetting the mortgage company. Flood claim checks may include the mortgage company. Ask early how endorsement and draw rules will work.
- Not separating costs. Ask contractors to separate ordinary flood repair from compliance work. This helps the insurer, local official, and any later grant program understand what each dollar is for.
- Missing appeal dates. If a claim is denied or underpaid, the NFIP’s appeal options page says policyholders have 60 days from the denial letter to appeal to FEMA.
- Relying on a verbal answer. Ask for letters, emails, written estimates, permit conditions, and claim decisions.
If you are denied, delayed, or overwhelmed
First, find out what was denied. A regular flood damage claim, an ICC claim, a building permit, a substantial damage appeal, and a FEMA disaster assistance application are different things. Each has different rules.
If the insurer says you are not eligible for ICC
Ask for the reason in writing. Is the problem that there is no NFIP building coverage? No local substantial damage letter? The building is outside the required flood zone? The policy cap has been reached? The work is not an approved mitigation measure? The answer tells you what to fix or challenge.
If the local office says the home is substantially damaged
Ask whether there is a local appeal or reconsideration process. You may need to provide a licensed contractor estimate, an appraisal of the building value before damage, photos, engineering information, or proof that some listed work is not needed to restore the home. Do not ignore the letter. A substantial damage finding can affect whether permits are issued.
If the flood claim is denied or underpaid
Talk to the adjuster and insurer first because some errors can be corrected quickly. If the written denial remains, the FloodSmart appeal page explains that a FEMA appeal must be filed within 60 calendar days of the denial letter. You can also consider legal advice, but a lawsuit has its own deadline and can affect appeal rights.
Call script: NFIP information help
“I have an NFIP flood policy question about ICC coverage and claim documents. My policy number is ready. Can you tell me whether I should contact my insurer, NFIP Direct, FEMA Mapping and Insurance eXchange, or another office for this issue?”
For general NFIP questions, FloodSmart lists the FEMA Mapping and Insurance eXchange on its contact page at 877-336-2627. If the issue is a claim, your insurer or NFIP Direct may still be the required contact.
Backup options when ICC is not enough
ICC may be helpful, but many flood recovery gaps are larger than the ICC cap. Ask about these options early because some open only after a declared disaster, some run through local government, and some take months or years.
- FEMA disaster assistance. If there is a presidential disaster declaration, apply through DisasterAssistance.gov or the FEMA helpline. Disaster assistance may help with temporary housing or some uninsured needs, but it will not duplicate insurance benefits.
- SBA disaster loans. The U.S. Small Business Administration’s disaster assistance page explains that homeowners, renters, businesses, and nonprofits may apply for low-interest disaster loans in declared disasters. A loan is debt, not a grant.
- Hazard mitigation grants. FEMA’s mitigation grants are usually applied for through states, tribes, territories, or local governments, not directly by most individual homeowners. These may support elevation, acquisition, relocation, or other long-term risk reduction when a community has an eligible program.
- HUD and local recovery programs. Long-term disaster programs may use CDBG-DR or local housing recovery funds. They can take time to open and may require duplication-of-benefits checks. Federal rules at 44 CFR 206.191 explain that FEMA works to prevent duplicate benefits between insurance and disaster assistance.
- Housing counseling. A HUD-approved counselor found through the CFPB counselor finder may help you think through mortgage issues, foreclosure risk, insurance delays, or whether a loan is safe.
- 211 and local nonprofits. United Way’s disaster recovery page says local 211 agencies track local help. They may know about cleanup help, muck-out teams, legal aid, transportation, shelter, food, or case management.
- Disaster legal help. The Legal Services Corporation’s disaster legal resource center can help people find legal information and local aid after disasters, especially for insurance, contractor, title, landlord, and FEMA appeal issues.
- General repair programs. USAGov’s repair programs page can help homeowners look for broader federal, state, or local repair paths, but local eligibility and funding rules still control.
Scam and contractor warnings after flood damage
Flood survivors are often pressured by people who show up at the door. Be careful with anyone who says they can “guarantee” ICC money, asks you to sign over the whole claim, tells you permits are not needed, demands full payment up front, or wants you to lie about the cause or cost of damage.
- Ask adjusters for identification. FloodSmart says NFIP adjusters should show a Flood Control Number card for the current storm year.
- Check contractor licensing, insurance, and local permit history before signing.
- Do not let a contractor be your only source of insurance or permit advice.
- Never pay a fee to “release” a government grant or ICC payment.
- Keep insurance checks, mortgage endorsements, and contractor draws separate and documented.
Short glossary
- ICC: Increased Cost of Compliance coverage under many NFIP Standard Flood Insurance Policies.
- NFIP: National Flood Insurance Program, the federal flood insurance program managed by FEMA.
- SFIP: Standard Flood Insurance Policy.
- SFHA: Special Flood Hazard Area, a higher-risk mapped flood area.
- Substantial damage: Damage where repair cost is at least 50% of the building’s pre-damage market value, using the applicable local process.
- Floodplain administrator: The local official or office that helps enforce floodplain rules and permits.
- Duplication of benefits: A rule that generally prevents two sources from paying for the same disaster cost.
Common questions about ICC coverage
Is ICC a grant?
No. ICC is a coverage under many NFIP flood insurance policies. It may help pay eligible compliance costs after a qualifying flood, but it is not a general grant and it is not available to everyone.
How much ICC coverage is available?
FEMA and FloodSmart currently describe ICC as providing up to $30,000 for eligible policyholders. That amount may still be limited by the applicable NFIP building coverage cap and by the actual eligible work.
Do I apply to FEMA directly for ICC?
Usually, you work through your flood insurer or agent after your local official issues the needed damage determination. You may contact NFIP or FMIX for general information, but the insurer handles the insurance claim.
Can ICC pay for contents or furniture?
No. ICC is for eligible building compliance and mitigation work. It does not pay for personal belongings.
Can a mobile or manufactured home qualify?
Possibly, if it has eligible NFIP building coverage and meets the other ICC rules. Manufactured home rules can be very local because permits, foundation requirements, elevation standards, tie-downs, park rules, and ownership documents may all matter.
What if my private flood policy is not NFIP?
Ask the private insurer for the policy language. Private flood policies may have different rules, different endorsements, or no ICC-style coverage at all.
What if I cannot afford the part ICC does not cover?
Ask the local recovery office, emergency management agency, 211, HUD-approved housing counselor, and legal aid about other disaster recovery or mitigation options. Do this before signing a loan or contractor agreement you cannot afford.
About This Guide
This HomeRepairGrants.org guide uses official federal, state, local, and high-trust nonprofit/community sources mentioned in the article, including FEMA, FloodSmart, eCFR, DisasterAssistance.gov, SBA, EPA, CFPB, 211, USAGov, and legal aid disaster resources.
HomeRepairGrants.org is not a government agency. This guide does not guarantee eligibility and is not legal, financial, tax, medical, insurance, disability-rights, or government-agency advice. Local rules, disaster declarations, insurance policy language, and funding availability can change. Always confirm your next step with your insurer, local floodplain administrator, housing counselor, legal aid office, or the agency running the program.
Corrections: Email info@homerepairgrants.org with corrections.
Next review: August 17, 2026