Navigating Post-Hurricane Recovery

Recovering from Hurricane Damage: Your Guide to Restoration and Renovation Options

In the aftermath of hurricanes Helene and Milton, many homeowners are focused on hurricane damage recovery. Alair Homes Tampa and Alair Homes Redington have received numerous inquiries from affected residents seeking guidance on their options. The storm brought high winds and a surge of saltwater that impacted both waterfront and inland properties. If you find yourself in this situation, understanding your next steps is crucial for effective storm damage restoration.

Assessing Damage for Effective Hurricane Damage Recovery

After the storm, the first step is to assess the damage. A loss adjustor can provide a comprehensive evaluation before you engage a restoration company. Your insurance company may send one to you, and you can engage one yourself.

Next, you are going to need to have a restoration company;

• Remove Damaged Materials: Restoration professionals will strip out compromised trim, doors, drywall, cabinetry, fixtures, appliances, and materials.
• Prevent Mold Growth: Dehumidifiers are essential to mitigate mold risks in the aftermath of flooding.
• Mold Assessment: Should there be suspicion or evidence of mold, engage a third-party qualified inspector to test for it and, if necessary, treat any mold found.
• Know The Moisture Level: As part of the mold assessment, get a moisture reading for the framing in particular. Moisture levels over 10% can lead to mold forming later on. Keep these assessments in your files for future sale of the property. Realtors and purchasers will ask for this data before buying a property.
• Safe, Secure, and Sanitary: You have a right to do whatever is necessary to protect your property until you are ready for the next steps.

In Florida, a homeowner has a responsibility to take reasonable steps to limit property damage once a covered event occurs, including taking immediate action to prevent further damage, contacting the insurance company promptly, and making necessary emergency repairs to mitigate losses; failure to do so could result in a denied or reduced claim depending on the specific circumstances and policy terms.

These initial mitigation efforts, while initially out-of-pocket expenses, should qualify as reimbursable items under your insurance policy.

Your Options for Hurricane Damage Recovery and Renovation

It’s vital to avoid rushing into any contract without exploring all available options. Each homeowner’s circumstances are unique, and careful consideration can protect your investment.

Key Questions to Consider

Is renovation worth it?

Before deciding to renovate, ask yourself:

• Insurance Considerations: What is the expected insurance payout? Will it cover your renovation costs? When? If you renovate a property that is below the base flood elevation are you going to be able to get insurance?
• Future Flood Risks: Are you prepared to invest in a property that may flood again, especially with construction costs rising approximately 7% annually?
• Value Retention: Will your renovations add value to an older property that’s below flood zone levels and not up to current construction standards?
• Flood Zone: What is your current elevation and what is the base flood elevation? https://msc.fema.gov/portal/home
• FEMA Regulations: Understand the Substantial Improvement rules, which limit spending to 50% of the appraised value of your home (excluding land value). https://www.fema.gov/pdf/floodplain/nfip_sg_unit_8.pdf
• Look-Back Period: Many jurisdictions will look at work carried out in the past and include the cost within the Substantial Improvement calculations. The time period they look-back varies.
• Construction Cost Calculations:  When applying for a construction permit, you must complete a substantial improvement packet with information, including a construction cost assessment. This assessment will need to be below the 50% threshold. The city will look to see where the data has come from. Licensed General Contractors, Department of Labor rates, homewyze.com, International Code Council (ICC), Loss Adjusters, etc., are all sources most jurisdictions will accept cost estimates can be based. The ICC’s rate for most residential properties is $64.85/sq ft., for example. There is no such thing as free labor or donations regarding renovation work being assessed.
• Elevation Potential: If considering elevating your home, can it be lifted above flood elevation without damaging the structure? Your home was probably not engineered to withstand such movement. If you do elevate the property, it still remains an older home, therefore is that money, plus the repair costs after, going to be recouped?
• Available Grants: Investigate any government or FEMA grants that could assist with storm damage. Hazard Mitigation Grant Program and FMA Swift Current Grant are two. https://www.floridadisaster.org/dem/preparedness/grants-unit/

What is Your Property Worth on the Market?

Understanding your property’s market value is crucial. Consider:

• Market Saturation: Consult with a local realtor to gauge the current market conditions and property values. Also, consider the effect on the market if land sales saturate it.
• Demolition vs. Renovation: Would demolishing the property be more beneficial? While demolition can cost $8,000 or more for a single-story home, it may be a strategic move in a saturated market.
• Unique Waterfront Value: Remember, you cannot recreate waterfront property, which often holds significant value. https://www.pcpao.gov/ https://gis.hcpafl.org/propertysearch/#/nav/Basic%20Search

Should You Build New?

Know your budget before you talk to builders. We cannot estimate the cost to build your vision – there is no such thing as a price per square foot unless what you want has already been built – how much is a bag of groceries? Look at your finances and talk to lenders to establish what you can or want to spend.

Knowing the budget will not only ensure time is not wasted designing something that will never be built but will also enable a builder to manage your expectations.

Building new can be the best long-term investment, but it requires careful planning:

• Cost Transparency: Work with builders who can provide accurate cost estimates without inflated mark-ups. An open-book approach enables you to avoid hidden mark-ups and benefit from the contractor’s buying power.
• Patience in Process: Understand that rebuilding takes time. Avoid shortcuts; a reliable builder will follow a structured process that starts with concept design, surveying, and budgeting.
• Teamwork: Building a home requires a team effort – the General Contractor, Architect, Structural Engineer, Energy Engineer, Surveyor, Civil Engineer, and City Inspectors are all working for you to turn your vision into reality.
• Builder Selection: Choose a trustworthy builder with a solid reputation. Check their license, insurance, financial health, experience, resources, accounting methods, contracts, process, communication practices, etc. This could be the biggest investment of your life – protect it.
• Planning is Key: Avoid committing to construction contracts until all information is gathered. Poor planning can lead to costly change orders and unexpected expenses. Insist your builder uses the permitting period to give you a very detailed cost breakdown, specification, and scope of work for the project. Every allowance should be detailed before construction and, hopefully, be a fixed cost before you sign a contract.
• Architect Collaboration: If starting with an architect, involve a builder early to ensure the design aligns with your budget and construction realities.
• Financial Options: Explore available loans or grants for rebuilding, including interest-free Small Business Administration and Disaster Loan options up to $500,000 (https://www.sba.gov/funding-programs/disaster-assistance).
• Taxes: Most, if not all, jurisdictions will not increase your taxes, providing you build a new home to the same square footage or less. Check with your local Property Appraiser’s office.

Take Action for a Stronger Future

While the aftermath of the hurricanes presents many challenges, taking a systematic approach to hurricane damage recovery can empower homeowners to make informed decisions. By evaluating your options carefully and seeking professional advice, you can navigate the rebuilding process effectively and protect your investment for the future. Remember, every situation is unique, and tailoring your strategy to your specific needs will lead to the best outcomes.

Learn More

For a comprehensive look at the recovery process, tips, and resources tailored specifically for homeowners in South Tampa, check out our detailed guide: Homeowner’s Guide to Hurricane Recovery in South Tampa.

Substantial Improvement Rules – Rules of Thumb 

1. Check the existing elevation of your home¹. 
2. Check FEMA’s Flood Map Service² for the Base Flood Elevation (BFE), adding 1’ to that. 
3. If the existing elevation is below the BFE+1’, check your Property Appraisal Value³ and apply 50%. This is the cap you can spend up to, typically. 
4. Check your Construction Type according to the 2024 International Building Code⁴. The ICC have predetermined rates that some municipalities are using, rather than complicated estimating breakdowns.
5. Establish the ICC Valuation, U Utility, Miscellaneous rate⁵ for the Construction Type. 
6. Apply the ICC Valuation rate to your property’s air-conditioned/heated space square footage6 to get the FEMA Substantial Improvement Determination⁷. This may need to be broken down to fill in the municipalities forms for permitting.
7. If the FEMA Substantial Improvement Determination exceeds the cap above, you are unlikely to get an approved permit to carry out the work. Seek the advice of a licensed General Contractor or Realtor. Options may be; 
   1. Obtain a private appraisal and hopefully increase the cap. 
   2. Raise the home above the BFE. 
   3. Spend less than Substantial Improvement Determination.  
   4. Rebuild to current building codes. 
8. If the FEMA Substantial Improvement Determination is less than the cap above, you should apply for a permit, usually the Demolition permit initially, followed by a building permit application, including the FEMA Substantial Improvement Determination packet⁸. 

These are the most common considerations in Pinellas and Hillsborough and may not be exactly what needs to be taken into account for your situation. Always check your particular circumstances. 

Footnotes

3. Depreciated Value of the structure only. Pinellas County https://www.pcpao.gov/. Hillsborough County https://gis.hcpafl.org/propertysearch/#/nav/Basic%20Search.

4. https://codes.iccsafe.org/content/IBC2024P1/chapter-6-types-of-construction

5. https://www.tampa.gov/document/fema-substantial-improvement-form-complete-package-66666

6. This area can be found on the Property Appraisal. Pinellas County https://www.pcpao.gov/. Hillsborough County https://gis.hcpafl.org/propertysearch/#/nav/Basic%20Search.