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If the cost to repair is 50% or more of the market value, the structure is considered Substantially Damaged and must be brought into compliance with current local floodplain management standards. Rebuilding to current standards decreases peril to life and property and prevents future disaster suffering.
The National Flood Insurance Act of 1968 launches the NFIP with two primary goals: reducing future flood damage and protecting property owners. The Flood Insurance Protection Act of 1973 requires the purchase of flood insurance for some homeowners in high-risk flood zones.
Hear this out loud PauseThe SDE Tool is based on the concept of using damage percentage estimates for individual structure elements to determine whether the structure as a whole is substantially damaged.
Substantial damage means damage of any origin sustained by a structure whereby the cost of restoring the structure to its condition before it was damaged would equal or exceed 50% of the market value of the structure before the damage occurred.
The primary goal in developing the SDE Tool is to give those officials, with limited appraisal or construction backgrounds, a way to make reasonable estimates of the value of buildings and the damage to those buildings after any event.
Hear this out loud PauseIt provides a standardized approach to data collection management and the determination of substantially damaged structures for local officials and helps communities provide timely SD determinations so that reconstruction can begin quickly following a disaster.