Fact Sheet: NFIP “Substantial Damage” – What Does It Mean?
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The decision about a structure being “substantially damaged” is made at a local government level, generally by a building official or floodplain manager.
Substantial damage applies to a structure in a Special Flood Hazard Area (SFHA) – or 1-percent-annual-chance floodplain – for which the total cost of repairs is 50 percent or more of the structure’s market value before the disaster occurred, regardless of the cause of damage. This percentage could vary among jurisdictions, but must not be below NFIP standards.
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