FEMA Appraisal in Miami

Do You Need a FEMA 50% Rule Appraisal in Miami?

As a homeowner in Miami or anywhere in South Florida, you understand the potential vulnerability you face from flooding, particularly when hurricane season rolls around. Each year, we hear more pressing issues about rising water levels and how they will impact the people who live here and their important investments.

The Importance of Flood Insurance in South Florida

We all understand the importance of being insured for flood and hurricane damage here in Florida. Something that many homeowners may not understand is the added financial vulnerability of having to make substantial repairs or renovations after storm damage or even elective renovations under FEMA’s 50% rule.

Preliminary New Flood Maps

Periodically, FEMA releases updated coastal flood maps after multi-year studies of flood risks to the Florida peninsula. They replace the outdated maps, some of which are almost 40 years old.

Home and business owners need to be aware of the changes in flood risk status for their properties, particularly those structures that are older and fall below the current first floor elevation requirements. The rules under which they can make any repairs or renovations may require them to bring their homes up to current standards or they will be uninsurable under NFIP.

Under the new FEMA 50% Rule guidelines, this will impact

• Any new renovations made
• Any rehabilitation of the building
• Any additions that are made to the building
• Any damage repair work
• Any partial reconstruction

Understanding the FEMA Appraisals in Miami

The basic premise of the FEMA 50% Rule is this: any improvement or repair to an existing structure that exceeds the value of the original structure by more than 50% will need to be brought into compliance with new flood regulations in order to be insured with the NFIP.

It also means that the building must be brought into compliance to or above the 1-year flood elevations standards, including bringing up first floor elevations. In most cases, this will impact older homes and buildings that were built before more current flood maps. As you may imagine, this can be a huge and expensive undertaking. Having a Miami substantial improvement appraisal in hand can help with that.

How FEMA Determines the Value of Your Structure

Under the 50% Rule, FEMA will use the country appraiser figure minus 20% to determine the value of the property.

An alternative that FEMA will consider is for the building owner or homeowner to have a licensed FEMA appraiser conduct an actual cash value appraisal in Miami to determine whether the building falls within the 50% Rule criteria.

The appraiser will conduct a thorough onsite appraisal to add and subtract the improvements that may have a substantial impact on the valuation of the property. Having an appraisal conducted by a qualified FEMA appraiser can make or break whether a building falls within the 50% Rule.

We Can Answer Your Questions

At FEMA Appraisals, we understand all FEMA regulations and can help you get the correct determinations of your home or building’s value under the new guidelines. If you have questions about the new FEMA guidelines and how they may affect your home or building, call the FEMA Appraisal division at Dade Appraisals at 305-595-1312. We would be glad to discuss how getting a current FEMA appraisal in Miami may help you.