Substantial Improvement/Substantial Damage Requirements

The NFIP requires that if the cost of reconstruction, rehabilitation, addition or other improvements to a building equals or exceeds 50% of the building's market value, then the building must meet the same construction requirements as a new building. Substantially damaged buildings must be brought up to the same standards (e.g., a residence damaged so that the cost of repairs equals or exceeds 50% of the building's value before it was damaged must be elevated above the base flood elevation).

For more information download the NFIP Substantial Improvements / Substantial Damage Requirements and Definition. brochure from the FEMA website.

Visit the FEMA webiste to learn about the  Flood Insurance Reform  program which discusses the history of the formation of the National Flood Insurance Program (NFIP).