Apply for Increased Cost of Compliance Within 60 Days of Substantial Damage Letter

BATON ROUGE, La. — Request funds to make your structure safer and stronger within 60 days after your community notifies you it is substantially damaged.

If you’re rebuilding or repairing a substantially damaged home or business, your community may require you to elevate or make other changes. Substantial damage applies when the cost of restoring a structure equals or exceeds 50 percent of its pre-damage market value, but some communities have more restrictive regulations.

Your National Flood Insurance Program (NFIP) policy may provide up to $30,000 to update your structure so it meets local floodplain management regulations. You must first submit a signed Increased Cost of Compliance (ICC) Proof of Loss form to your insurance company.

Provide a contractor’s estimate for the proposed ICC-eligible measures to your home or business and copies of construction permits. Your insurance company needs these to consider an ICC claim.

Structures that comply with floodplain management regulations have an enhanced ability to withstand storms and floods. Examples of ICC measures include elevation, relocation and floodproofing.

You have six years from the date of loss to complete the chosen and approved ICC measures.

Go online to the Louisiana Department of Transportation and Development’s website at www.8.dotd.la.gov/lafloods/community_contacts.aspx to find your community’s floodplain administrator or permitting official if you want to learn more about the substantial damage determination process.

The U.S. Small Business Administration (SBA) may be another source of funds to make your home or business safer and stronger.

If your loan application is approved, you may be eligible for additional funds to pay for improvements that will protect your property against future damage. The funds would be in addition to the amount of the approved loan.

For more information, call the SBA at 800-659-2955 or TTY 800-877-8339. You may also go online to sba.gov/disaster.