Substantial Improvement / Damage

The National Flood Insurance Program requires that if the cost of improvements to a building or the cost to repair damages (from any cause) to a building equals or exceeds 50% of the current market value of the building (excluding land value), the entire building (original structure and any new additions) must be brought up to current floodplain management standards.

A structure is considered substantially damaged if it is damaged by any cause whereby the cost of restoring the structure to its before-damaged condition would equal or exceed 50% market value of the structure before the damage occurred. A substantially damaged structure cannot be repaired without bringing the structure into compliance with the current floodplain management standards, which includes, but is not limited to, elevating the lowest floor of the structure to flood protection grade.

Building improvement projects include but are not limited to exterior and interior remodeling, rehabilitation, additions and repair, and reconstruction projects.

For further information, please contact the Department of Planning Services at 260-449-7607.