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.