PA ID# 111-92311-00; City of Keokuk
PW ID# 1324 & 1372; George M. Verity Tow Boat Museum
Citation: FEMA-1763-DR-IA, City of Keokuk, PWs 1324 and 1372
Cross Reference: Mandatory NFIP Deductions
Summary: FEMA prepared PW 1324 for $208,480 for asbestos abatement and PW 1372 for $17,118 to repair flood damage to the George M. Verity Tow Boat Museum (Museum) and its contents following a series of severe storms and flooding beginning May 25, 2008. FEMA reduced the eligible amount of each PW by $202,980 and $11,983 respectively, because the damaged facilities were located in a Special Flood Hazard Area (SFHA). FEMA regulations at 44 CFR §206.252, Insurance requirements for facilities damaged by flood, require FEMA to reduce the amount of assistance it provides for facilities that are located in SFHAs by the amount of insurance which would have been received had the building and its contents been insured by the National Flood Insurance Program policy. On December 9, 2008, the Applicant submitted its first appeal requesting a waiver of mandatory NFIP deductions on PWs 1324 and 1372 stating it had unsuccessfully made multiple attempts over the past 30 years to obtain flood insurance on the facility. The Applicant provided a letter from its insurance carrier stating that the facility was uninsurable under NFIP. The Iowa Homeland Security and Emergency Management Division forwarded the appeal to FEMA on January 8, 2009. The State supported the request for a waiver of the mandatory deductions. On April 29, 2009, the Acting Regional Administrator determined that the Museum was insurable under NFIP and denied the first appeal for these PWs. The Applicant submitted a second appeal, on June 26, 2009, to remove the mandatory NFIP deductions from PWs 1324 and 1372. The Applicant did not provide any additional documentation with the second appeal. The State does not support the Applicant’s appeal.
Issue: Is the George M. Verity Tow Boat Museum insurable under NFIP and therefore subject to the mandatory NFIP deduction?
Rationale: 44 CFR Part 61 - INSURANCE COVERAGE AND RATES and §206.252(a), Insurance requirements for facilities damaged by flood.