If your home was damaged you need to understand this rule: FEMA 50%

Rebuilding After Hurricanes Milton and Helene: Navigating FEMA’s 50% Rule

If you’re a Florida homeowner recovering from hurricanes Milton or Helene, you might already be grappling with FEMA’s 50% Rule. Here’s a quick overview and an invitation to a Zoom session where I’ll explain this rule and ways to work around it.

What’s the FEMA 50% Rule?

The FEMA 50% Rule restricts repair or improvement costs for properties in flood-prone areas to no more than 50% of the building’s market value. If repairs or upgrades exceed this limit, FEMA requires the entire building to be brought up to current flood standards—often requiring elevation, which can be expensive.

How Does It Affect Your Rebuilding?

This rule can create a hard stop for those trying to rebuild or resell after significant storm damage. For older homes, bringing everything up to code can be both costly and complicated. However, there are strategies for navigating these requirements that can reduce your costs and help you make informed rebuilding choices.

How Does This Affect Your Resale?

New homes on he market require a flood disclosure to inform the future buyer if your home was flooded in the past. If your home was flooded and you completed the repair with unpermitted work (to avoid the 50% rule) the future buyers will be on the look out.

Options to Work with or Around the 50% Rule

1. Accurate Market Valuation: Ensuring a correct valuation of your property can help avoid triggering the rule. (In other words increasing your home value to increase your 50% amount.) Ask me how!
2. Prioritize Repairs: Focusing on essential repairs first may keep costs within the 50% limit.
3. Explore Financing Options: Additional funding sources may be available to help meet FEMA’s requirements if needed.

Join My Zoom Call for More Guidance

I’m hosting a Zoom session on 11/1 to answer questions and share strategies for handling the FEMA 50% Rule as you rebuild. Join us here to learn how to rebuild with peace of mind and protect your property.

Let’s get through this rebuilding process, equipped and informed!