Substantial improvement
Substantial improvement means a rebuild or addition costing 50 percent or more of a building's market value, which requires the whole building to meet current flood rules.
FEMA defines substantial improvement as any reconstruction, rehabilitation, addition or other improvement that costs 50 percent or more of the building's value before work starts. It also covers structures with substantial damage, whatever repair is done.
A big remodel in a flood hazard area can cross the line. Then the whole house must meet current flood rules, as described under the FEMA 50 percent rule. Plan the budget with a clear value for the existing home. See building on your lot for how this affects a project.
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