Texas Adjuster Practice Test

In the context of the Flood Policy, what does ICC stand for?

1. Insurance Cost Calculation

2. Increased Cost of Compliance

3. Insured Coverage Compliance

4. Independent Claim Classification

The correct answer is: Increased Cost of Compliance

In the context of the Flood Policy, ICC stands for Increased Cost of Compliance. This term relates to the additional expenses that property owners might incur to bring their property into compliance with current floodplain management ordinances or laws following a flood. When a property suffers substantial damage and is subjected to flood insurance claims, there may be requirements to elevate, flood-proof, or otherwise modify the structure to meet current regulations. The Increased Cost of Compliance coverage helps reimburse the property owner for these necessary upgrades, which can be significant. This feature emphasizes the importance of adhering to updated safety standards in flood-prone areas and supports property owners during the recovery process after a flood incident. Other options like Insurance Cost Calculation, Insured Coverage Compliance, and Independent Claim Classification do not accurately reflect the specific benefits and provisions outlined in the flood insurance policy regarding compliance costs.