This is the FEMA Substantial Damage Estimator Training Series.
Welcome to Module 1
The Purpose of the SDE Tool.
After a disaster or other source
causes damage to a structure
communities that participate
in the National Flood Insurance Program or NFIP
must carry out an evaluation of the property
that has been impacted by the event
in order to determine whether the property has
been substantially damaged.
This module is the first of ten that will cover a
range of topics related to Substantial Damage estimation.
These modules are designed to be a cohesive training that will
guide you from the basics of Substantial Damage estimation
using FEMA's SDE Tool
to the performance of an assessment in the field on a structure.
Each module can also be viewed as a standalone training
so that you can refer back to specific modules
as needed when questions arise.
After completing this training you will understand the
purpose of conducting Substantial Damage estimations
understand what the FEMA SDE Tool is and how to use it
and know how to properly assess a structure that has been damaged.
Throughout this course we will review the different parts
of the SDE evaluation process
and demonstrate how the FEMA SDE Tool can be used
to conduct Substantial Damage assessments.
In Module 1 we’ll cover a basic introduction to this training
some of the National Flood Insurance Program
requirements related to Substantial Damage
and some general guidance for making
Substantial Damage determinations.
This training was designed to help assist local and state
officials in making Substantial Damage determinations
in accordance with the NFIP using the
FEMA Substantial Damage Estimator software.
Before beginning the training
it is important to consider several questions
related to performing Substantial Damage estimations.
Has your community ever performed SDE assessments before?
If so how have you been performing these assessments?
Have you been using FEMA’s SDE Tool?
What are the benefits and challenges of using the Tool?
What is the basis for Substantial Damage determinations
and how is the SDE data that is collected used to make
determinations of Substantial Damage?
What is the process in your community for reevaluating
a Substantial Damage determination
if there is an appeal by a property owner?
The SDE Tool was developed in response to
the challenges that many local and state officials face as they try to conduct
Substantial Damage assessments in accordance
with the NFIP after major disasters.
The primary purpose of developing the Tool is to give those officials
with limited appraisal or construction backgrounds a way of developing
reasonable estimates of the value of buildings
and the damage to those buildings.
The Tool should also be a resource for a seasoned damage inspector
by providing an organized platform to prepare data and calculate damages in a
consistent format that can be used as supporting documentation to ensure
the community remains in compliance with NFIP regulations.
The FEMA SDE Tool is free software that can be downloaded from
FEMA's website along with the user manual and field guidebook.
This presentation will give a thorough overview
of using the Tool and performing assessments
but the SDE manual provides in-depth
detail that may be useful as a reference
once your community has begun carrying out assessments.
Throughout this training you will notice references to specific sections
of the user’s manual and field book which provide more
detailed information on the topic that is currently being covered.
The SDE software also has a help menu and numerous links
within the Tool that can provide assistance
in answering questions you may have
about the Tool and performing assessments.
There are also PowerPoint slides
answers to frequently asked questions
and best practices for SDE
which can be found on FEMA’s website and can be reviewed and used
as reference documents as well.
One of the best things about the SDE Tool is that it acts as an organizing
platform for all the Substantial Damage data that a community needs
to collect on structures after a major event.
Since it is designed specifically for collecting
Substantial Damage information
the data is organized into an easily reviewable
format that is conducive to making determinations of
whether a structure has been substantially damaged.
Some of the objectives for using the Tool include
identifying data that needs to be collected
to make a Substantial Damage determination
recording that data in a formal and organized manner
and housing a database of inventoried structures that need to be evaluated.
Other objectives include providing a repository to store
photos and other files that support making SDE determinations
creating reports that summarize the data collected and the
calculations that led to the Substantial Damage determination
and meeting NFIP requirements related to
performing Substantial Damage determinations.
Another feature of the SDE Tool is that it allows the user to perform
assessments on both residential and non-residential structures.
Much of the information that needs to be collected to perform an assessment,
such as structure attributes, must be entered whether you are performing a
residential or non-residential assessment.
As we will see, there are some differences between performing
a residential and non-residential assessment.
We will cover both residential and non-residential assessments
in more detail in a later module
but there are some key elements
that you should know about each type of
assessment before we proceed.
Evaluations of residential structures in SDE are based on
performing an assessment of 12 different building elements
including the structure’s foundation, superstructure, and roofing.
Each of these elements is assessed separately and a
percent damaged determination is made for each.
There is also a built-in square footage calculator that
facilitates determining the square footage of a structure
if that information is not already known.
Another useful feature is the attachment tool
which allows users to upload attachments
such as photos of the structure
elevation certificates, and other useful documentation.
Finally the Tool allows the user to import
or export data from non-SDE databases
so that users who have structure data from an existing database can
easily import that data into the Tool to perform an assessment
and also export the resulting assessment to a format that is compatible
with local programs or systems.
In cases where the user would like to collect additional information that is not
built directly into the Tool
there is an option to add up to three additional data fields
so that this information can be collected in the field as well.
As mentioned there are a number of
different attributes of a structure that can be collected
as residential structures are being assessed
and each of these attributes contains different options within the Tool
that can be selected to identify the
specific structural attributes.
The SDE Tool also has the capability
to perform assessments on non-residential features
which tend to vary widely based on structure use.
Although the Tool does not identify every
non-residential structure use that may exist
it does include many options to choose from.
These options were vetted through a range of industry experts
to try to consolidate the most common
structure uses in communities across the country.
Non-residential structure attributes that can be identified using the Tool
include structure use and whether the structure has a sprinkler system
and/or a conveyance system.
The user can also select the quality of the construction
and make cost adjustments to the structure’s value
by altering different options within the Tool.
Like residential structures
non-residential structures are also evaluated in terms of the
damage sustained to each element of the structure.
This damage is calculated based on a percentage
value determined by the assessor.
For non-residential structures there are only 7 elements to evaluate
versus the 12 that must be evaluated for residential structures.
One of the other key elements for calculating Substantial Damage
is to determine the building value of the structure.
To remain in compliance with NFIP requirements
there are three options for determining the building value
when performing Substantial Damage estimates.
The first is that the SDE Tool will calculate
the Computed Actual Cash Value or ACV
based on the data that you provide as part of the assessment.
The other two values can be obtained from other sources
often the local tax office or appraiser.
No matter which option is selected
this number becomes the denominator in the
overall equation to determine Substantial Damage.
The numerator in the Substantial Damage
equation is the cost of repairs.
There are three ways to determine the cost of
repairs that meet NFIP requirements.
The first is to let the SDE Tool compute the damages
again based on the information that the assessor puts into the Tool.
The other two options can be obtained through a contractor
or the community’s estimate.
Once the cost of repairs and the value of the building are calculated
the repair cost is divided by the building value
to get an overall percent damage calculation.
If the result of that calculation is 50% or greater
the structure is considered substantially damaged.
As explained previously, one of the primary objectives of the SDE Tool
is to try to help local officials carry out the important process of
determining Substantial Damage at a time when they are often very busy
and may not have time to thoroughly make these determinations
with existing tools and information.
The Tool creates a streamlined approach
that allows users to evaluate structures
across the community in a quick and consistent manner
thereby allowing them to stay in compliance with the requirements
set forth in the National Flood Insurance Program.
As damage assessments begin in the post-disaster period
it is important to try to keep in mind some
simple guidelines for performing Substantial Damage estimates.
There are a few key types of damage to focus on
when carrying out any assessment.
These include looking for physical damage on both
the surface and subsurface of each element
evaluating damage to structural elements that are
permanent features of the structure
not portable items like furniture or televisions
determining if there is a loss of use of elements such as HVAC units
and identifying mechanical damage that may affect
the normal functions of a structural element.
While those rules are applicable for any assessment
you may be performing on any hazard
certain other considerations should be made
when performing an assessment
in coastal or high velocity flood areas.
For example salt water frequently causes more damage
to a structure than a similar duration of freshwater flooding
so this should be taken into consideration
when evaluating coastal structures.
In addition structures in high velocity riverine zones or coastal areas
may experience a stronger surge from waves that can push
structures off their foundations and cause severe damage that should
be included as part of the damage assessment.
Another important rule of thumb when performing inspections
is that entering a home or other private
property should be done with caution
and only if the property owner has given you
explicit permission to do so.
Most inspections should begin by knocking on the door of the house
or alerting the owner to your presence in some fashion.
Explain who you are and the organization you are representing
and then ask permission to perform a
damage assessment of the property.
In most cases, property owners will be happy to oblige
but if they refuse the inspection
it may be necessary to leave the premises.
In these cases do not put yourself in danger and simply
report the refusal back to your team lead or supervisor.
If there is no one present do not enter the structure.
Many assessments can still be completed from the outside of the structure
so you should proceed to complete the assessment without entering
and by gathering as much information as possible
from your observations.
With the SDE Tool inspections should be
carried out relatively quickly.
After performing several assessments with the Tool
a typical inspection should require roughly 15 minutes to complete.
Remember to stay focused on
collecting the information that the Tool requests
and that you are only providing percent damage estimates
not trying to calculate the dollar value of damages on your own.
The SDE Tool was developed so that this calculation
could be completed within the Tool itself.
In this vein note that all inspections are intended to be visual only.
There is generally no need for tools such as levels or ladders to
perform up-close evaluations of building elements.
Inspectors should also keep their personal safety in mind.
If there is any question about the structural integrity of the building
you should not enter and should perform the assessment to the
best of your ability at a safe distance.
For non-residential inspections many of the same rules of thumb apply.
Inspectors should not enter any building without the owner’s permission
and should keep safety in mind in all situations.
Often due to their size and custom design
non-residential inspections can also take
longer to perform than residential inspections.
When carrying out a non-residential inspection
account for the extra time it may take to complete the inspection
as you are planning your day and make sure to take extra caution
if you are in a structure that contains large
equipment or machinery that may be dangerous.
If at any time you feel you are in an unsafe situation
you should leave and report the situation to your team lead.
One important distinction in terminology
to keep in mind when performing assessments
is that there is a difference between a structure that has been
classified as Substantially Damaged
and one that has been classified as uninhabitable.
Substantially Damaged refers to a case where the dollar value of
damage that has affected a structure is more than
50% of the value of that structure
whereas an uninhabitable designation
generally refers to a legal or health-related issue
that means the structure cannot be lived in.
A given structure may be considered either substantially damaged
uninhabitable or both.
Generally if the structure is substantially damaged
it is likely that it will also be considered uninhabitable.
However the reverse is not necessarily the case
as a structure that is considered uninhabitable
may simply be in violation of a local code
and may not be substantially damaged.
Structures that have been classified as uninhabitable
may be identified as such for a number of reasons
including health issues, a temporary lack of utilities, or building code violations.
None of these cases would definitively
mean that a structure was substantially damaged
but could very well occur simultaneously with a
Substantial Damage determination.
One of the keys to success and credibility of an SDE program
is to ensure consistency in the way that
Substantial Damage determinations are made.
Every community is different
but officials who are performing damage assessments
should communicate and coordinate frequently to
make sure they are on the same page.
It is also recommended that a community select a
single method for determining building value
and require all assessors to employ
this same methodology across the community
so that all structures are evaluated using the same criteria.
It should also be noted that it is OK for
determinations to be revised based on additional information
that may be gathered at a later date such as from a certified appraisal.
Finally it is recommended that all assessments be reviewed
and quality controlled before they are finalized.
Taking photographs while in the field can
help facilitate this review process
and avoid cases where assessments include inaccurate information.
As you have learned in this module
the purpose of the SDE Tool is to facilitate the process of carrying out
Substantial Damage assessments to remain in compliance with the NFIP.
The Tool is flexible and can be used by inspectors of any level of experience
to help organize all of the information that needs to be collected
to make Substantial Damage determinations.
In the modules that follow you will learn more about how
to effectively use the Tool and perform assessments.
Thanks for watching.
This training is one of a ten-part series.
Please continue to Module 2.