Last reviewed 08-20-2026Short-Sale.com Editorialglossary
Substantially Damaged
FHA Single Family Housing Policy Handbook Glossary November 26 2025
Updated 08-20-2026
Substantially Damaged
A building is considered to be “Substantially Damaged,” as defined in the National Flood Insurance Program (NFIP) regulations, when “damage of any origin is sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.”
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