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Texas Damage Surveys and "Substantial Damage"

Many recovery workers currently in southeastern Texas are surveying structures and collecting data on damages caused by Hurricane Ike. This information is important in several ways. The following questions and answers clarify the purpose and use of these damage surveys.

Who is collecting this information?

Local governments are collecting this data with assistance from the Texas Water Development Board and the Federal Emergency Management Agency (FEMA).

What data is being collected?
Inspectors record the actual observed damage to structures in order to estimate what it would cost to repair them.

Why is the data being collected?
Most of the communities impacted by Hurricane Ike are members of the National Flood Insurance Program (NFIP). After a flood, the program requires that participating communities evaluate damage to individual properties located within the communities’ Special Flood Hazard Areas, also known as regulatory floodplains. Damage estimates help local government officials guide safe rebuilding and community recovery.

What is “substantial damage”?
A structure is considered to be “substantially damaged” when the total cost of repairs would equal or exceed 50 percent of its pre-damage market value, regardless of the cause of the damage. For example, if a structure’s market value before the damage was $200,000 and repairs are estimated to cost $120,000, that structure is “substantially damaged.” Land value is excluded from the determination.

Who determines which structures are “substantially damaged”?
Local government officials make “substantial damage” determinations based on the data that is collected. 

What requirements must owners meet to rebuild a “substantially damaged”structure?
If a building in a regulatory floodplain is “substantially damaged,” it must comply with the community’s floodplain management regulations. Owners who decide to rebuild may need to elevate or retrofit their structures or change them in some other way to comply with local floodplain management ordinances and avoid future flood losses. Owners of non-residential structures may need to make the buildings floodproof. Before starting to rebuild, owners must obtain building permits from the local government.

Are there other options for owners after a “substantially damaged”finding?
In some cases, owners may decide to relocate their structures outside of the regulatory floodplain or to demolish them. 

Is any financial help available to bring structures into compliance?

In addition to grant funds that communities may have, another possible source of funding for making “substantially damaged” structures less vulnerable to flooding is Increased Cost of Compliance. For structures in the regulatory floodplain with standard policies through the National Flood Insurance Program, up to $30,000 in coverage may be available over and above claims payments for damages. These funds can be used for elevation, relocation or demolition. For non-residential structures, Increased Cost of Compliance funds can also be used for floodproofing.  

In some cases, owners may have the opportunity to assign their Increased Cost of Compliance payments to their communities for inclusion in community-sponsored acquisition programs primarily funded by state and federal agencies.

Where is additional information available?

Answers to general flood insurance questions are available from local floodplain administrators, the National Flood Insurance Program (1-800-427-4661), and insurance companies and agents. Information is also available at www.fema.gov and www.floodsmart.gov.

Insurance agents can provide information about purchasing policies. Referrals to agents who sell policies are available at 1-800-427-2419.

Those affected by floods and other disasters can register with FEMA at www.fema.gov or by calling 1-800-621-3362.

 

Last Modified: Wednesday, 11-Aug-2010 14:46:13 EDT