Substantial Improvement & Damage

Improvement Requirements
The National Flood Insurance Program (NFIP) requires that if the cost of improvements to a building or the cost to repair damages (from any cause) to a building exceeds 50% of the market value of the building (excluding the land value), the entire building must be brought up to current flood plain management standards. Building improvement projects include:
  • Addition projects
  • Exterior and interior remodeling projects
  • Reconstruction projects
  • Rehabilitation projects
  • Repair projects
Currently Planned Improvements
Additionally, the cost of currently planned improvements will be added to the cost of previously made improvements and compared to the existing market value to determine if the improvements exceed 50% of the structure’s value.