Mandatory NFIP Deductions
Appeal Brief
| Disaster | FEMA-1763-DR |
| Applicant | City of Logan |
| Appeal Type | Second |
| PA ID# | 085-46155-00 |
| PW ID# | 1748 |
| Date Signed | 2010-03-11T05:00:00 |
Citation: FEMA-1763-DR-IA, City of Logan, PW 1748
Cross
Reference: Mandatory NFIP Deductions
Summary: FEMA prepared PW 1748 for $10,323 to reimburse the City of Logan (Applicant) for contents in its maintenance buildings that were damaged or destroyed by the flood. The PW reflected a mandatory flood insurance reduction of $15,987 because the maintenance buildings were located in a special flood hazard area. The Applicant stated it had a flood insurance policy with a $100,000 deductible; therefore, FEMA should reimburse the total amount of the claim. FEMA applied the mandatory National Flood Insurance Policy reduction because the contents could have been more fully insured under a standard NFIP policy pursuant to 44 CFR §206.252, Insurance requirements for facilities damaged by flood. The Acting Regional Administrator sustained the initial determination on first appeal.
Issue: 1. Is the standard NFIP reduction required when the Applicant has a blanket insurance policy with a $100,000 deductible?
Finding: 1. Yes.
Rationale: 44 CFR Part 61.1, and 44 CFR §206.252(a), Insurance requirements for facilities damaged by flood.
Appeal Letter
March 11, 2010
David L. Miller
Administrator
Iowa Homeland Security and Emergency Management Division
7105 NW 70th Avenue
Camp Dodge, Bldg W-4
Johnston, IA 50131-1824
Re: Second Appeal–City of Logan, PA ID 085-46155-00, Mandatory NFIP Deductions,
FEMA-1763-DR-IA, Project Worksheet (PW) 1748
Dear Mr. Miller:
This letter is in response to your letter dated June 23, 2009, which transmitted the referenced second appeal on behalf of the City of Logan (Applicant). The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) decision to reduce PW 1748 by $15,987 for the mandatory National Flood Insurance Program (NFIP) reduction.
Background
A series of severe storms and flooding impacted Harrison County, Iowa beginning on
May 23, 2008. The flooding damaged the maintenance buildings in the city’s maintenance yard. The Applicant requested $26,310 to replace damaged contents in the buildings. FEMA prepared PW 1748 for $10,323, which reflected a mandatory NFIP reduction of $15,987 because the buildings were located in a special flood hazard area (SFHA) (44 CFR §206.252, Insurance requirements for facilities damaged by flood). The Applicant stated that it had a blanket insurance policy with a $100,000 deductible. Therefore, FEMA should fund the total amount requested. The Acting Regional Administrator sustained the initial FEMA determination on first appeal in a letter dated April 29, 2009. The Applicant submitted a second appeal on June 16, 2009.
Discussion
FEMA reduced the eligible amount of the PW because the damaged facilities were located in a SFHA. FEMA regulations at 44 CFR §206.252 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 a standard NFIP policy. The maximum deductible for contents for non-residential structures under a standard
NFIP policy is $5,000. Therefore, reimbursement of the total deductible under the Applicant’s insurance policy is not eligible.
Conclusion
Based on review of the information submitted with the appeal, I have determined that the Acting Regional Administrator’s decision in the first appeal is consistent with Public Assistance regulations and policy. Accordingly, I am denying the second appeal.
Please inform the Applicant of my decision. This determination is the final decision on this matter pursuant to 44 CFR §206.206, Appeals.
Sincerely,
/s/
Elizabeth A. Zimmerman
Assistant Administrator
Disaster Assistance Directorate
cc: Beth Freeman
Regional Administrator
FEMA Region VII