10Although the vulnerability indicator method has been applied to several data-scarce regions, a missing linkage with damage grades had hindered its application for loss evaluation to complement disaster risk reduction efforts. To address this gap, we present a review of physical vulnerability indicators and flood damage models to gain insights on best practice. Thereafter, we present a conceptual framework for linking the vulnerability indicators and damage grades using three phases (i) developing a vulnerability index, (ii) identifying regional damage grades, and (iii) linking vulnerability index classes with 15 damage grades. The vulnerability index comprehensively integrates elements of the hazard using a Building Impact Index (BII) on one hand, and exposure, susceptibility and local protection elements using a Building Resistance Index (BRI) on the other hand. For the damage grades, local expert assessments are used for identifying and categorizing frequently observed regional damage patterns. Finally, by means of synthetic what-if analysis, experts are asked to estimate damage grades for each interval of the BII and class of BRI to develop a vulnerability curve. The proposed conceptual framework can be used 20 for damage prediction in data-scarce regions to support loss assessment and to provide guidance for disaster risk reduction.