SDE Tool Data – Building Value

One of the other key elements for determining substantial damage is the building value.

There are three options available in the SDE Tool for determining that a building’s value is compliant with NFIP requirements.

The most accurate option is to use a professional market appraisal for the structure only. This is best for structures that are 1-3 years old. However, the burden of proof is on the property owner to provide this information. Market value estimates should be defensible and consistent.
The next best option is to use the adjusted tax assessed value for the structure only.
The third option is to use the SDE Tool’s computed actual cash value (ACV) with a depreciation rating entered by the assessor.

No matter which option is selected, this value becomes the denominator in the substantial damage equation.

Tip

For more information, refer to:

Section 4.5—Determining Market Value in the Substantial Improvement/Substantial Damage Desk Reference available at https://www.fema.gov/media-library-data/20130726-1734-25045-2915/p_758_complete_r3.pdf
FEMA 213: Answers to Questions About Substantially Damaged Buildings, available at https://www.fema.gov/media-library-data/1541603833704-2b9800c9c287c373db595cb2789ea78a/FEMA_P213_FINAL_08232018_508.pdf
Lesson 3 for more information on the use of unit cost and square footage to calculate the value of a building