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Citation:         FEMA-1791-DR-TX; Gulf Marine Institute of Technology (Applicant),

NFIP Reduction, PW 12410

Cross-

Reference:      Insurance

Summary:      Hurricane Ike damaged the Applicant’s business property located in a Special Flood Hazard Area (SFHA).  FEMA prepared PW 12410 for $350,899.  During FEMA’s insurance review, it applied a mandatory National Flood Insurance Program (NFIP) reduction of $127,668.  The Applicant appealed FEMA’s NFIP reduction.  The Applicant had applied for a comprehensive insurance program, including flood insurance coverage, and was in the insurance underwriting process for approximately three months prior to Hurricane Ike.  When Hurricane Ike occurred, the Applicant was in the process of getting the last required information for the insurance underwriters.  Therefore, the Applicant did not have flood insurance at the time of Hurricane Ike.  The Regional Administrator denied the first appeal because flood insurance was not in place at the time of the disaster declaration and, therefore, the NFIP reductions were appropriate. 

In its second appeal, the Applicant reiterates that it made sincere and timely efforts to obtain flood insurance prior to Hurricane Ike.  Although the Applicant was in the process of obtaining flood insurance, the Applicant did not have flood insurance coverage at the time of Hurricane Ike.  Therefore, FEMA properly applied a mandatory NFIP reduction.

Issues:            Did FEMA properly apply a mandatory NFIP   reduction?

Findings:         Yes.

Rationale:       The Stafford Act Section 406(d); 44 CFR §206.252, Insurance requirements for facilities damaged by flood