What does ICC stand for in the context of flood insurance?

In the context of flood insurance, ICC stands for Increased Cost of Compliance. This term refers to an important provision within flood insurance policies that provides financial assistance to property owners who must comply with updated floodplain management regulations after a flood event.

When a property is damaged by flooding and determined to be located in a designated flood zone, owners may face additional costs to elevate or otherwise bring their structures up to current safety standards established by the community's floodplain management regulations. The Increased Cost of Compliance coverage helps to cover these costs, offering a critical safety net for policyholders who need to make significant improvements to their properties to reduce future flood risks.

Understanding this component is vital for insured individuals, as it can greatly affect their financial responsibilities following a flood event and ensures that they can comply with local governing requirements designed to reduce flood damage in the future. This aspect of flood insurance underscores the importance of compliance with regulations not just for individual safety but also for community resilience against floods.