FEMA Public Assistance/Insurance Fact Sheet 

Release Date: February 4, 2003
Release Number: 1446-36

» More Information on Guam Super Typhoon Pongsona

According to Federal law, to receive Public Assistance funding for a facility, an applicant must obtain and maintain insurance to cover that facility for the hazard that caused the damage. The insurance must be maintained for the useful life of the facility.

The insurance coverage must, at minimum, be in the amount of the estimated eligible project costs for that structure prior to any reduction. FEMA asks for physical documentation that the insurance policy is in place before any project is funded.

If the insurance requirement is not met, FEMA will not provide assistance for damaged sustained in the current disasters. If the insurance is not maintained, the applicant cannot get Public Assistance funding for that facility in future disasters.

An applicant is exempt from this requirement for facilities where the eligible damage is less than $5,000.

During the Typhoon Paka recovery, only reinforced concrete (Class A) buildings damaged in excess of $5,000 were required to purchase insurance coverage. These same buildings must be insured in order to receive Public Assistance funding for Typhoon Chata'an or Super Typhoon Pongsona.

Government buildings that were not damaged in Typhoon Paka but were damaged in Chata'an or Pongsona, could be eligible for Public Assistance funding.

Due to the short time between Typhoon Chata'an and Super Typhoon Pongonsa it is not reasonable for applicants to have complied with the insurance requirement for Chata'an.

GovGuam committed to creating a self-insurance plan and policy to cover facilities damaged by Typhoon Paka and repaired with Public Assistance funds. However, most GovGuam line agencies have no written plan or policy in effect for self-insurance against typhoon losses. There is no self-insured funding. In this case, self-insurance must be considered "no insurance."

Some departments with facilities not eligible for Pongsona Public Assistance repair are the Department of Education and the Department of Public Works. Adelup, which received a Public Assistance repair grant following Paka, may also fall into that category.

Some of the autonomous agencies were insured and could receive full funding (less insurance proceeds) for Pongsona damage repair. These include Guam Memorial Hospital, the Guam International Airport, the University of Guam, Guam Community College and the Port Authority.

Last Modified: Monday, 14-Apr-2003 12:07:26