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Second Appeal Brief
PA ID# 115-48000-00; City of Miami
PW ID# 1209, 2024, 2025 & 2026; Mandatory NFIP Deductions
Citation: FEMA-1712-DR-OK, City of Miami, PWs 1209, 2024, 2025, and 2026
Reference: Mandatory NFIP Deductions
Summary: FEMA prepared eight PWs to reimburse the City of Miami (Applicant) for damages to buildings and contents damaged by the flooding of July 2007. FEMA reduced the PWs for mandatory National Flood Insurance Program (NFIP) reductions because the facilities and contents were located in a Special Flood Hazard Area (SFHA) and not covered by a standard flood insurance policy. The Applicant submitted its first appeal on October 28, 2008, requesting a waiver of mandatory NFIP deductions on PWs 782, 788, 1085, 1209, 1574, 2024, 2025, 2026 in the amount of $302,597. On December 30, 2008, the Oklahoma Department of Emergency Management forwarded the appeal to FEMA. The State recognized that NFIP deductions are mandatory and did not support the request for a waiver. However, the State did support the Applicant’s argument that the PWs included some buildings and contents that were uninsurable and thus not subject to the deduction.
On April 27, 2009, the Regional Administrator partially approved the first appeal, reversing the mandatory deductions on PWs 782, 788 and 1085 in the amount of $23,033; the remaining PWs were denied. The Applicant submitted a second appeal on July 28, 2009, to remove the mandatory NFIP deduction from PWs 1209, 2024, 2025, and 2026 in the amount of $258,907. The Applicant submitted pre-disaster pictures of the pool sand filters and pumps and the horse barns as well as an email from the Applicant’s insurance carrier stating that the equipment and horse barns were uninsurable under the NFIP. The State forwarded the second appeal to FEMA on August 14, 2009, for PWs 1209, 2024, 2025, and 2026 recommending approval.
Issues: 1. Are the pool sand filters insurable under NFIP and therefore subject to the mandatory NFIP deduction?
2. Are the horse barns insurable under NFIP and therefore subject to the mandatory NFIP deduction?
Findings: 1. No.
Rationale: 44 CFR Part 61 - INSURANCE COVERAGE AND RATES and §206.252(a), Insurance requirements for facilities damaged by flood.