The FEMA “50% rule” states that if the cost to repair damage to a structure after a flood or disaster exceeds 50%* (*Redington Shores code is 49%) of its market value before the damage, the structure is considered “substantially damaged” and must be brought up to current floodplain management standards when repairs are made, which typically means elevating the structure or using flood-resistant materials to comply with local regulations; essentially, you can’t simply repair the damage without making significant improvements to protect against future flooding.

Also see: https://townofredingtonshores.com/wp-content/uploads/2023/02/KDOW-Substantial-Damage-Fact-Sheet.pdf

These are the items to be included when determining Substantial Improvement Costs:

  1. Labor/transportation costs for removal of damaged goods:
    • Drywall
    • Flooring
    • Electric
    • HVAC
    • Plumbing
    • Exterior Cladding (house siding, etc.)
    • Appliances
    • Cabinets
    • Doors/Trim
  2. Roof replacement
  3. Window/Door replacement
  4. Replacement of damaged items, material and labor:
    • Framing and structural repairs
    • Drywall
    • Paint
    • Doors/Trim
    • Cabinets
    • Plumbing
    • Electrical
    • HVAC
    • Flooring
    • Water Treatment Systems
    • Hard-wired appliances (not “plug-in” appliances, i.e. free-standing range, refrigerator, etc.)  Appliances like dishwashers, garbage disposals, wall ovens, built in cooktops are considered Hard-wired
  5. Personal labor and Volunteer labor must be accounted for at a reasonable hourly rate – even though there’s no actual expense. The Department of Labor provides hourly rates for most trades at https://data.bls.gov/PDQWeb/wm.