The National Flood Insurance Program’s ICC Increased Cost of Compliance Benefit
Increased Cost of Compliance or ICC is a $30,000 additional benefit from your flood insurance policy that is filed with your flood agent or adjuster. To receive this reimbursement benefit for elevation or demolition, your home must be deemed "substantially damaged" by the township. To meet that threshold, the cost to repair your home to the pre-storm condition (with no upgrades), just put the house back together, must exceed 50% of the pre-damaged market value of the building alone. (Do not include land value). The township is using an adjusted assessed value (NOT assessed building value on your tax bill) as the market value. If you have had a recent appraisal done on your property, you may submit that to establish market value if the land and building elements are separated out. Call the tax assessor’s office for your value at 609-361-6658. Tell them it is for the ICC claim information.
If you live in a condo with additional units in the one building, we would use the value of the entire building, not just your one unit. Once you have received your final adjuster’s report and a written detailed estimate from a licensed NJ contractor to repair your home, please call to make an appointment with the building department to go over your rebuilding, elevation , or demolition options.
If you do not have flood insurance, you will need to bring in your estimate to repair as above. We will go over your options at that time.
Please mail or drop off your completed paperwork with contact information to the Building Department, 6805 Long Beach Blvd., Brant Beach, NJ 08008.
You have six years from October 31, 2012 to either elevate or demolish your home if is deemed substantially damaged. In the meantime your flood insurance premiums will rise significantly if the house is not elevated to the new base flood elevation once the new maps are finalized.
Frequently Asked Questions About ICC and Hazard Mitigation and Repairs
Do you have to have flood insurance to claim the $30,000 ICC benefit?
Yes, it is part of your flood insurance policy and it does NOT matter if the home is a primary home or secondary home. You do need to be deemed "substantially damaged" in order to file the ICC claim. Letters of substantial damage determination are issued by the building department after a full review of your paperwork.
Can the ICC money be used to elevate an existing home or demolish and build a new elevated home?
Yes, it can be used for either.
Is the Hazard Mitigation Grant Program for elevating houses open only to primary home owners?
No, anyone may apply, with or without flood insurance.
What if I want to go ahead and repair my house now and elevate later?
You may apply for permits to repair to rehab your damaged home now. You will be given a temporary CO if you need to elevate your home later. You have four years to elevate if you are substantially damaged. Flood insurance premiums will rise significantly in the meantime until the house is brought into compliance.