D. Coverage D: Increased Cost of Compliance - Assignment

The adjuster completes the Adjuster Preliminary Damage Assessment (APDA) form when there is possible “substantial damage” to the insured building directly from flood, non-covered flood damage, and damage from other perils. Only communities can determine substantial damage. Substantial damage is defined as damage from any origin where the cost to repair the structure to its before damaged condition equals or exceeds 50 percent of the market value of the building before the damage occurred. The adjuster should know that some communities have adopted a percentage threshold of less than 50 percent. Community officials can efficiently direct resources for substantial damage inspection when APDAs are received early in the flood disaster recovery process.