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Citation:                FEMA-1817-DR-WA, City of Snoqualmie, Insurance, PW 1617

Cross-

Reference:            Insurance

Summary:             During January 6 thru January 16, 2009, heavy rains and snow melt resulted in flooding causing four inches of flood water to enter the City of Snoqualmie’s (Applicant) planning building.  The flood water resulted in damage to 1,210 SF of glue down carpeting, 4,840 SF of drywall, and 1,210 LF of eight-inch medium density fiberboard (MDF) base cove.  FEMA prepared PW 1617 to capture the cost for the damages, also stipulating that a flood insurance policy be obtained and maintained covering the building.  The Applicant has general insurance coverage under the Washington Cities Insurance Authority (WCIA).

                               The Applicant submitted its first appeal on November 16, 2009.  The Applicant contends that Section 311, Insurance (42 USC 5154) of the Stafford Act nor does FEMA Disaster Assistance Fact Sheet 9580.3, Insurance Considerations for Applicants does not prohibit the use of a pool or blanket policy for flood coverage.  The Regional Administrator denied the first appeal citing that “a blanket insurance policy, an insurance pool arrangement or some combination thereof does not satisfy the requirement in Title 44 CFR §206.252 and 206.253. 

                                On October 8, 2010, the Applicant submitted its second appeal, reiterating its position in the first appeal.  The Applicant submitted no new information in support of its second appeal.

Issues:                   1.   Does the Applicant’s insurance policy satisfy the regulatory requirements?

2.      Must the Applicant comply with the insurance requirements of 44 CFR §206.252(d), even though they have coverage under WCIA?

Findings:               1.   No.  In accordance with 44 CFR §206.252, blanket insurance, pool arrangements, or any combination thereof does not satisfy the regulation. 

 2.      Yes.  To be eligible for Public Assistance funding, the Applicant must comply with 44 CFR §206.252, and be fully covered by NFIP and/or a standard flood insurance policy.    

Rationale:             CFR §206.252 (d), Insurance requirements for facilities damaged by flood, 44 CFR §253 (b)(2), Insurance requirements for facilities damaged by disasters other than flood, FEMA Disaster Assistance Fact Sheet 9580.3 Insurance Consideration for Applicants