Laws are made to be adopted and enforced. As an lawyer, it’s unethical to advise individuals to interrupt the legislation. I get quite a few calls and questions which ask me, “How do I get around FEMA’s 50% Rule?”
The reply is that everyone must adjust to the 50% Rule. A broken construction will both be decided to be above or beneath the 50% dedication beneath federal and state legislation.
The subsequent query is: “Does the insurance claim amount have an impact on the 50% Rule finding?” Technically, the reply is “no.” On the opposite hand, one can not defraud an insurer or the federal government. The restore estimates and pricing for the insurance coverage declare ought to be sincere. If it’s sincere and much above 50% of the construction’s market worth, I’d counsel that will probably be very troublesome to count on avoidance of an adversarial 50% dedication.
The FEMA 50% situation is actually one among actual property legislation somewhat than insurance coverage protection legislation. One Southwest Florida actual property legislation agency, Grant Fridkin Pearson, famous the next:
The FEMA 50% Rule solely appears to be like on the market worth of the construction/enchancment on the property, and never the land worth, in calculating the FEMA 50% Rule worth. Most native jurisdictions use the property appraiser’s worth for the construction/enchancment, however do enable the property proprietor to acquire their very own appraisal to find out the worth of the construction/enchancment.
Below is a survey of how native jurisdictions have applied the FEMA 50% Rule:
1. The City of Naples appears to be like on the prices for enhancements or repairs to a construction inside a one (1) 12 months interval to find out compliance with the FEMA 50% Rule. To worth the construction, the City of Naples at the moment appears to be like on the Collier County Property Appraiser’s assessed worth of the construction and provides 20%. However, the property proprietor has the choice to offer an unbiased appraisal ready and authorized by a licensed appraiser.
2. Collier County seems to base the prices of enhancements/repairs relevant to the FEMA 50% Rule worth on every particular person allow that’s pulled as an alternative of evaluating the totality of prices over a said time frame. The worth of the construction is at the moment decided by the Collier County Property Appraiser’s assessed worth. However, the property proprietor has the choice to offer an unbiased appraisal ready and authorized by a licensed appraiser.
3. Lee County appears to be like on the prices for enhancements or repairs to a construction inside a 5 (5) 12 months interval to find out compliance with the FEMA 50% Rule. To worth the construction, Lee County at the moment appears to be like on the Lee County Property Appraiser’s assessed worth of the construction and provides 20%. However, the property proprietor has the choice to offer an unbiased appraisal ready and authorized by a licensed appraiser.
Local constructing officers should observe state and federal guidelines and rules. The federal authorities just isn’t going to look the opposite method if the native constructing officers fail to observe the FEMA 50% Rule.
I counsel policyholders involved about this situation additionally change into very acquainted with FEMA’s Substantial Improvement/Substantial Damage Desk Reference. I additionally encourage you to learn my prior put up on this matter: Substantial Damage and Questions About FEMA’s 50% Rule.
Thought For The Day
The authorities can not implement its mountain of legal guidelines and rules with out voluntary compliance.
—Charles Murray