NFIP flood policy provides up to how much coverage for increased cost of compliance?

NFIP flood policy provides up to how much coverage for increased cost of compliance?

• A. $30,000
• B. $50,000
• C. $100,000
• D. $250,000

Answer: (A)

Increased Cost of Compliance (ICC) coverage under an NFIP flood policy pays the extra expenses needed to bring a flood-damaged building into compliance with local floodplain management requirements. It specifically covers costs to elevate, relocate, or demolish the structure as required by the community’s regulations after a flood loss. The maximum ICC payout is $30,000 per structure, which is why the correct option is the one that states $30,000. This amount is separate from other flood claim costs (like repairs to the building’s structure or contents) and is limited to the ICC purpose. The higher dollar amounts listed in the other choices do not apply to ICC.

Increased Cost of Compliance (ICC) coverage under an NFIP flood policy pays the extra expenses needed to bring a flood-damaged building into compliance with local floodplain management requirements. It specifically covers costs to elevate, relocate, or demolish the structure as required by the community’s regulations after a flood loss. The maximum ICC payout is $30,000 per structure, which is why the correct option is the one that states $30,000. This amount is separate from other flood claim costs (like repairs to the building’s structure or contents) and is limited to the ICC purpose. The higher dollar amounts listed in the other choices do not apply to ICC.