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Citation:         FEMA-1785-DR-FL, St. Lucie County, Insurance Requirement                 

Cross-

Reference:      Insurance Purchase Requirement

Summary:       St. Lucie County (applicant) received funding to repair damage to the Tradition Field Sports Complex as a result of Tropical Storm Fay.  As a result,  Project Worksheet (PW) 1882 was prepared for $20,096.  As part of FEMA’s insurance review of PW 1882, FEMA discovered that the Tradition Field Sports Complex received funds as a result of a prior disaster and therefore the Applicant was required to obtain and maintain appropriate insurance on this facility.  FEMA de-obligated the funds because the Applicant failed to obtain and maintain the required insurance coverage.  In its first appeal, November 23, 2009, the Applicant asserts that the prerequisite insurance obligations have been satisfied.  Additionally, the Applicant stated that the damage outlined in PW 1882 was not subject to any such pre-existing insurance requirement.  FEMA denied the appeal stating that the Applicant did not satisfy the requirement to obtain and maintain insurance for facilities that received FEMA funding for repairs to damage sustained during a previously declared event.  In its second appeal, August 31, 2010, the Applicant reiterated its position and did not provide additional documentation.

Issue:              1.  Is an Applicant required to both obtain and maintain insurance coverage as a      

                             condition of receiving Federal assistance?

Finding:           1.   Yes

Rationale:       Section 311 (a) and (b) Insurance of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; 44 Code of Federal Regulations (CFR) §206.253(f),Insurance requirements for facilities damaged by disasters other than flood; and Disaster Assistance Fact Sheet DAP9580.3 Insurance Considerations for Applicants.