Fifty Percent of Market Value, Measured Before the Damage or Before Construction Starts
A flood recedes. A single-story house in a mapped floodplain has water two feet above the floor, the drywall is gone, and the mechanical equipment is scrap. Whether that house is repaired where it sits, at the floor elevation it has now, or lifted onto a new foundation above the base flood level, turns on one number: 50 percent. The number does not come from the water depth or from an engineer. It comes from a definition. The definition lives in the eCFR text of 44 CFR 59.1, Definitions , and that one section carries the 50 percent twice. Once for damage, once for improvement. Each time it is 50 percent of the market value of the structure, and each time the section names a different moment at which that market value is fixed. For a house that has just been flooded, the two moments sit on opposite sides of the flood. That is the whole of it. One estimate of $80,000 to put the house back is 40 percent of a $200,000 pre-damage value and 62 percent of a $130,000 damaged-condition valu...