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FEMA/NFIP Extends Waiver Time for ICC Compliance

In the early stages of National Flood Insurance Program claims response to Superstorm Sandy, a number of policyholders (in N.J.) were advanced 50% of their full potential Increased Cost of Compliance Benefit (up to $30,000) to rebuild and raise their structures to new Base Flood Elevation code...
August 12, 2015

In the early stages of National Flood Insurance Program (NFIP) claims response to Superstorm Sandy, a number of policyholders (in N.J.) were advanced 50% of their full potential Increased Cost of Compliance Benefit (up to $30,000) to rebuild and raise their structures to new Base Flood Elevation (BFE) code. However, appreciating the full scale and scope of Sandy's impact and the time that it would take for final BFEs to be codified, the then-officials of FEMA/NFIP waived the NFIP policy requirement that such ICC conformity be accomplished no longer than 2-years after the damage occurred. Instead they granted a 4-year compliance timeline.

However, during the mid-July meetings among the Flood Insurance Producers National Committee (FIPNC) and new officials of FEMA/NFIP, insurance representatives noted to the new officials that confusion had emerged about the ICC timeline among NFIP policyholders affected by Sandy, and what was still a 2-year timeline being imposed on New Jersey communities to comply with the ICC Community Rating System requirements.

FEMA/NFIP bulletin w-15038 fairly and practically addresses this issue by providing all NFIP policyholders affected by flooding events occurring after 01-01-2011 a six-year ICC compliance window. This embraces the Sandy event (2012), includes the 4-years granted to some (2016) and provides all with an additional year (2017). NFIP policyholders having received 50% advance payment must document their compliance to receive the additional 50%, or can use the ICC funds as their required matching funds for large NFIP Disaster Recovery Grants.

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