Case Study

Commercial

FEMA 50% Improvement Rule Avoided & Property Value Increased by $200K

Chattanooga, TN

Image of Commercial property for FEMA 50% Improvement Rule Avoided & Property Value Increased by $200K

$200,000 in Added Property Value

Solutions Found:

Flood Expert Survey

LOMA

Solutions Value: $12,000 Year-Over-Year Savings | $200,000 in Added Property Value

NFE Solution: FES; LOMA

Discover how a Chattanooga, TN, hotel owner saved $12K per year on flood insurance, added $200K in property value and avoided FEMA's 50% improvement rule by working with National Flood Experts (NFE) after being referred to NFE by their insurance agent.

The owner of a Chattanooga, TN, hotel felt the strain of rising flood insurance premiums and was planning major renovations when FEMA's 50% Rule threatened to ruin their plans. The 50% Rule applies to structures where the lowest floor is below the 100-year flood elevation (i.e. the base flood elevation). Under the 50% Rule, if an improvement is "substantially damaged" or "substantially improved," it must be brought into compliance with the flood damage prevention regulations, including elevating the building to or above the 100-year flood elevation. Each community is responsible for defining "substantial damage" and "substantial improvement."

Their insurance broker, who had many past successful projects with NFE, contacted NFE to explore potential solutions for their client.

NFE gathered the relevant documents and performed the initial desktop review, which identified a high likelihood that the hotel would qualify for removal from the Special Flood Hazard Area (SFHA) through a Letter of Map Amendment (LOMA). To fully confirm the solution, additional data was required. The client agreed to have NFE perform a Flood Expert Survey (FES) of the property.

The FES data confirmed that the building qualified for a LOMA. NFE's engineering team prepared the FEMA submission package, and the LOMA was approved just over one month after submission to FEMA!

With the LOMA in hand, the lender mandate for flood insurance was removed, resulting in $200,000 in increased property value and $12,000+ in annual flood insurance premiums. The most significant win for the client was no longer having the renovation plans restricted by FEMA's "50% Rule," and they were able to complete substantial renovations with much less permitting red tape.

View Other Case Studies

Image of Commercial property for Over $110,000 Reduction in Flood Insurance Premiums, Resulting to $1.8MM+ in Added Property Value

$1.8MM+ in Added Property Value

Over $110,000 Reduction in Flood Insurance Premiums, Resulting to $1.8MM+ in Added Property Value - San Jose, CA

Read how NFE helped a commercial real-estate portfolio save over $110,000 in premiums and increase property value by $1.8+ million across several retail & hotel properties in Hawaii and California.

Image of Multifamily property for Successful Insurance Collaboration, Resulting in a LOMA, Cost Savings and Increased Property Value

$217,000 in Added Property Value

Successful Insurance Collaboration, Resulting in a LOMA, Cost Savings and Increased Property Value - Slidell, LA

Learn how a collaboration between a Client’s insurance broker and NFE resulted in a successfully obtained LOMA, saving a multifamily property in Slidell, LA, $13K in annual flood insurance premiums while adding $217K in property value.

Image of Multifamily property for Multifamily Property Saves $25K+

$400,000 in Added Property Value

Multifamily Property Saves $25K+ - Chesapeake, VA

NFE saves Chesapeake, VA multifamily property $25K+ in insurance expenses and increases property value with comprehensive FES and FEMA-approved building removal via LOMA. Boost NOI and property value with NFE's flood expertise.