Local Innovation and Coastal Protection Act of 1992

Local Innovation and Coastal Protection Act of 1992 - Amends the National Flood Insurance Act of 1968 to require the Director (Director) of the Federal Emergency Management Agency to make grants ($500,000 maximum with matching fund requirements) from the Coastal Erosion Control Fund (established by this Act) to States and qualifying communities for an erosion mitigation demonstration program.

Gives grant priority to projects that: (1) have multiple location applicability; (2) broaden existing erosion control techniques; or (3) rely on natural designs rather than structural alterations.

Sets forth reporting requirements. Authorizes appropriations.

Establishes in the Treasury the Coastal Erosion Control Fund. Requires the Director to: (1) assess an annual five-dollar flood insurance premium mitigation surcharge to be paid into such Fund, unless the Fund's balance exceeds $15,000,000; (2) evaluate and publish a list of the most effective erosion mitigation measures; and (3) provide flood insurance rate incentives for erosion mitigation efforts.