Missouri Residents May Have Added Flood Aid

Under the National Flood Insurance Program (NFIP) administered by the Federal Emergency Management Agency, Missourians who experienced flooding and owned flood insurance from the NFIP on their damaged homes or businesses may be eligible for up to $30,000 in additional aid. The money can be used to make their homes or businesses safe from future floods.

If a building has been severely damaged or repeatedly flooded, it may be designated by the local building department as "substantially damaged" or a "repetitive loss property." The policyholder is then required to rebuild it in a flood-safe way, which usually means elevating or moving the structure. This is where the extra funds, up to $30,000, may be available to pay for mitigation techniques to reduce future flooding risks.

The benefit is called "Increased Cost of Compliance" or ICC coverage, because it helps pay for the increased cost of complying with the local floodplain ordinance. It is a part of most National Flood Insurance Program policies.

"Substantial damage" must be determined by local officials to have been caused by flooding and must equal 50 percent or more of the pre-disaster market value of the structure. Similarly, local officials may declare a building as a "repetitive loss property" if it has suffered two or more flood losses over 10 years. The cost of repair for each flood on the average must have equaled or exceeded 25 percent of the market value of the building before the damage occurred or cumulative damage of over 50 percent with flood claims for each loss. In addition, for ICC to be available there must be a community ordinance that contains a repetitive loss clause.

Flood victims seeking ICC aid need to apply for it on a separate form, which they can obtain from their insurance agent. The money can be used to elevate, demolish, or relocate their damaged structure. The total insurance payout including ICC coverage cannot exceed $250,000 for a residence or $500,000 for a non-residential structure. Non-residential structures only may use ICC funds for flood-proofing.