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Natural disasters affect structural health of buildings, thus directly impacting public safety. Continuous structural monitoring can be achieved by deploying an Internet of things network of distributed sensors in buildings to capture floor movement. These sensors can be used to compute the displacements of each floor, which can then be employed to assess building damage after a seismic event. The peak relative floor displacement is computed, which is directly related to damage level according to the United States federal agencies standards. With this information, the building inventory can be classified into immediate occupancy, life safety, or collapse prevention categories. In this paper, we propose a zero velocity update technique to minimize displacement estimation error. Theoretical derivation and experimental validation are presented. In addition, we investigate modeling sensor error and interstory drift ratio distribution. Moreover, we discuss the impact of sensor error on the achieved building classification accuracy. [ABSTRACT FROM AUTHOR]