SC’s Rice pushes bill that would give flooded families more help after the next storm
U.S. Rep. Tom Rice introduced a piece of bipartisan legislation this week that could grant families whose homes flood thousands of additional dollars after the next storm.
The legislation, which Rice introduced with Texas Democrat Vicente Gonzalez, would raise the Increased Cost of Compliance coverage limit from $30,000 to $100,000.
That increase goes well beyond what Horry County Council members asked Congress to do last year. In a resolution passed in March 2021, council asked the federal government to raise that limit to $60,000.
Home insurance typically does not cover flood damage, so residents who live in flood-prone areas must purchase additional insurance to protect their homes and belongings.
The ICC is part of federal flood insurance policy and says if a building is significantly damaged by flood waters, the owner must take steps to reduce flood damage in the future.
Among the options the ICC money can go toward is elevating a home, moving to a different home, demolishing a home and flood-proofing a home.
The federal government created the ICC as part of the 1994 National Flood Insurance Reform Act and it went into effect in 1997.
The government initially capped the ICC at $15,000 but later raised it to $30,000.
Rice’s legislation would also untie ICC funds for a family from an insurance payout they receive, which is currently not the case.
If, for example, a family received a $100,000 flood insurance payout, $30,000 of that total would have to go toward the ICC requirements of flood-proofing, raising a home or demolishing or selling it.
The legislation creates a scale for flood insurance payouts.
It raises the minimum ICC payout to $50,000 but other factors could qualify a family for up to $100,000.
That cap, Rice’s office explained in a statement, is tied to the amount of flood insurance a family has. More insurance would equal a higher ICC payout.
Because the legislation unties ICC coverage from regular flood insurance, a family could receive up to $350,000 to recover from a flood, the statement noted.
The legislation also removes a cap on ICC insurance premiums, which is how families will receive additional funds, according to the statement.
It noted that the National Association of Realtors and the Association of State Flood Plain Managers support the bill.
“All eight counties in the 7th District are part of a big floodplain,” Rice said in the statement. “Flooding has had a devastating impact on our community over the past ten years, and this legislation will help cover the cost of mitigation measures to reduce flood risks.”
The Grand Strand and Pee Dee regions have seen several major flooding events in recent years.
Hundreds across the state lost their homes after Hurricane Matthew in 2016, the state has said. And more than 1,500 lost their homes after Hurricane Florence in 2018.
Socastee’s Rosewood neighborhood was hit especially hard by Hurricane Florence flooding. Horry County has since begun a program to buy out dozens of homes in the area.
The county has also increased building standards for new construction in areas that flooded during Hurricane Florence.
It also launched an interactive map to help homeowners know which parts of the county are flood-prone.
“Since the ICC coverage limit was last raised over two decades ago, the cost for repairs have risen significantly,” Rice said in the statement. “This increase in coverage will help provide relief to homeowners, especially those who do not want to leave their waterfront property.”
Maryanne Martini, a spokesperson for Rice, said in an email the legislation will also allow ICC money to be used for home buyouts.
The legislation, she said, is “something the Congressman has pushed for in the past after speaking with homeowners who want the ability to get out of their house if flooding happens over and over again.”
She also noted that Rice “will be fighting” to ensure the changes end up in Congress’ next re-authorization of the national flood insurance program.
Gonzalez, too, said he’d push Democratic leadership to adopt the changes.
“I look forward to working with Congressman Rice and House leadership to pass this bill and bolster flood mitigation resources for communities in South Texas and across the country,” he said in a statement.
“Flooding is not just a coastal problem. Our changing climate, increased urbanization, and aging infrastructure have only made this issue more severe.”
