Citation:      FEMA-1539-DR-FL, Daytona State College, Project Worksheet(s) 1852, 1871 and 3550
Cross
Reference:   Duplication of Benefits
Summary:   In August 2004, Hurricane Charley damaged roofing on Buildings 100 and 140 on Daytona State College’s (Applicant) campus. The Applicant contracted its roof replacement projects and the work was completed in March 2006 at a cost of $813,448.  FEMA, the Grantee, and the Applicant agreed that 100 percent of the damage to the roofs was caused by the hurricane.  The Applicant had an all-risk insurance policy obtained through the Florida Community Colleges Risk Management Consortium (FCCRMC).  The FCCRMC was created to obtain and administer third party commercial insurance coverage for Florida’s Community Colleges. In accordance with 44 CFR §206.250(c), FEMA deducted anticipated insurance proceeds in the amount of $446,102 from PWs 1852, 1871, and 3550.  York Insurance Services Group handled the claim adjustment and offered the FCCRMC a settlement of $182,103 for Building 100 and $185,243 on Building 140 for a total of $367,346.  The FCCRMC agreed to the negotiated settlement amount on behalf of the Applicant.  At final inspection, FEMA deducted the actual and anticipated insurance proceeds from each PW totaling $813,448 on the basis that the Applicant accepted an insurance settlement for less than the damages covered under the terms of the insurance policy.

On July 28, 2008, the Applicant submitted its first appeal requesting that FEMA re-obligate the anticipated insurance proceeds deducted from the PWs in the amount of $446,102.  The Regional Administrator denied the appeal on August 13, 2009, because the Applicant had an insurance policy that provided full coverage of the roof damage but it accepted a negotiated settlement of a lesser amount from the insurer.  The Applicant submitted its second appeal on January 11, 2010.  The State supports the Applicant’s position.
Issues:            1.  Did the Applicant have full insurance coverage on the damaged facility?
                       2.  Is the Applicant eligible for FEMA assistance for the amount of damage that was covered by the policy but not compensated for by the insurer?
Findings:         1.  Yes.
                      2.  No.
Rationale:   Stafford Act Section 312 Duplication of Benefits; 44 CFR §206.253(a) Insurance requirements for facilities damaged by disasters other than flood; 44 CFR §206.250(c) General; Public Assistance Guide, FEMA 322, October 1999, page 94; Fact Sheet DAP9580.3, Insurance Considerations for Applicants