In most cases, the following will occur with an Increased Cost of Compliance (ICC) claim:
- Report flood loss to insurer.
- Claims adjuster makes estimate of flood damage and tells policyholder he/she may be eligible for ICC benefits.
- Building department determines building is substantially damaged or is a repetitive loss. Discuss mitigation options which will comply with floodplain regulations. Issues necessary building permits for mitigation measures.
- Policyholder provides the building departments written determination of substantial damage or repetitive loss to the adjuster.
- Adjuster will set up an ICC claims file:
- Obtain damage and market value information on structure.
- For a repetitive loss structure, get previous claim information.
- Verify the flood related damage for the current building claim supports community information.
- Policyholder must obtain a signed contract which details costs to perform the mitigation activity and give it to the claims representative.
- The adjuster will provide proof of loss form to the policyholder.
- Policyholder will provide proof of loss and copy of community permit to the insurance company in order to receive the first portion of the ICC claim money.
- Adjuster then provides an initial ICC claim payment to the policyholder.
- Policyholder completes the mitigation measure.
- Building department inspects completed mitigation work and issues a Certificate of Occupancy.
- Policyholder provides a copy of certificate of occupancy to the insurer.
- Adjuster makes final ICC claim payment upon receipt of Certificate of Occupancy.
Find more information on the National Flood Insurance Program.