Questions & answers · Flood insurance
My city says my flood-damaged house must be raised or changed to meet local rules. Does flood insurance pay for that?
Flood insuranceWho paysChecked Nov 5, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-05 · Source: FEMA · Standard Flood Insurance Policy, Dwelling Form (44 CFR Part 61, Appendix A(1)) · Art. III.D (Coverage D—Increased Cost of Compliance) items 1 and 2 View original ↗
In short
- The standard flood policy has "Coverage D—Increased Cost of Compliance".
- It pays up to $30,000 for elevation, floodproofing, relocation, or demolition required by a state or local floodplain law.
- It only applies to policies with building coverage.
What this means
This answer is about the federal National Flood Insurance Program (NFIP) standard policy. Coverage D says the policy pays you to comply with a State or local floodplain management law or ordinance affecting repair or reconstruction of a building suffering flood damage. The compliance activities eligible for payment are elevation, floodproofing, relocation, or demolition, or any combination. The policy pays up to $30,000 under Coverage D, which only applies to policies with building coverage (Coverage A). This is in addition to the amount of coverage you selected, but the total for Coverage A and D cannot exceed the maximum permitted under the Act. The policy has more rules on who is eligible; the sources here do not list all of them.
Your next step
Ask your adjuster and insurer in writing whether you are eligible for Coverage D. The source does not give a deadline for Coverage D; read Article III, paragraph D, item 3 (Eligibility) in the policy.
Check it yourself
Open the policy text at the eCFR link and read Article III, paragraph D.
Where this comes from (1)
[1] FEMA · Standard Flood Insurance Policy, Dwelling Form (44 CFR Part 61, Appendix A(1)) · Art. III.D (Coverage D—Increased Cost of Compliance) items 1 and 2 · checked 2026-11-05
This policy pays you to comply with a State or local floodplain management law or ordinance affecting repair or reconstruction of a building suffering flood damage. Compliance activities eligible for payment are: elevation, floodproofing, relocation, or demolition (or any combination of these activities) of your building. … We will pay you up to $30,000 under this Coverage D—Increased Cost of Compliance, which only a…
How we found this
We matched your question to 1 official source, quoted the exact lines, and re-checked each quote against its source on 2026-11-05.
What we don’t know yet
Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.
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Information only — not legal advice. Your plan, insurer or agency decides.
This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.
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Answer id CQ3016. Spotted an error? Tell us.