Substantially Improved Building

{
  "id": "MLC-T-INS-000237",
  "term": "Substantially Improved Building",
  "field": "Insurance and risk management",
  "definition": "1. A building that has undergone reconstruction, rehabilitation, addition, or other improvement, the cost of which equals or exceeds 50% of the market value of the building before the \"start of construction\" of the improvement. This term does not include a building that has undergone reconstruction, rehabilitation, addition, or other improvement related to:\n• Any project or improvement of a building to correct existing violations of a state or local health, sanitary, or safety code specifications that have been identified by the local code enforcement official and which are the minimum necessary to assure safe living conditions; or\n• Any alteration of a \"historic building\", provided that the alteration will not preclude the structure's continued designation as a \"historic building\".\n\n2. A building that has undergone reconstruction, rehabilitation, addition, or other improvement, the cost of which equals or exceeds 50% of the market value of the building before the \"start of construction\" of the improvement. This term does not include a building that has undergone reconstruction, rehabilitation, addition, or other improvement related to:\n1. Any project or improvement of a building to correct existing violations of a state or local health, sanitary, or safety code specifications that have been identified by the local code enforcement official and which are the minimum necessary to assure safe living conditions; or\n2. Any alteration of a \"historic building\", provided that the alteration will not preclude the structure's continued designation as a \"historic building\".",
  "subject": "National Flood Insurance Program",
  "references": [
    "FloodSmart Flood Insurance Glossary",
    "FEMA Glossary"
  ],
  "url": "https://mlchart.com/terminology/insurance/substantially-improved-building/"
}