What is a FEMA appraisal?
When a home is located in an area where flood insurance is required, FEMA limits the amount a property can be improved. This is due to the added flood risk associated with an improvement below flood level height. Since flood levels are periodically updated, building height thresholds are also changed. The 50% Rule is the specific damage assessment guideline established by the Federal Emergency Management Agency (FEMA), and is also widely used by coastal communities which participate in the Community Rating System (CRS) of the National Flood Insurance Program (NFIP).
Replacement Cost: The cost to replace the property on the same premises with another property of comparable material and quality used for the same purpose utilizing modern building techniques in compliance with modern codes and methods.
Depreciated Replacement Cost: The replacement cost of a structure as a factor of the remainder of the structure’s economic life.