What does substantially damaged mean?

The term "substantially damaged" typically refers to a level of destruction that affects a significant portion of a structure, impacting its functionality and safety. In many contexts, particularly in insurance and regulatory frameworks, a threshold of 51% or more damage is commonly used to classify a property as substantially damaged. This means that more than half of the structure's value or physical integrity is compromised, indicating the need for serious repair, rebuilding, or reconsideration of the property's safety and viability.

Choosing the option that states 51% or more of the dwelling is destroyed aligns with standard definitions utilized in assessments and claims processes. It indicates a clear point at which damage has become extensive enough to require more than minor repairs, thereby activating certain insurance clauses or federal assistance programs related to disaster recovery.