[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR206.253]

[Page 478-479]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 
                                SECURITY
 
PART 206_FEDERAL DISASTER ASSISTANCE FOR DISASTERS DECLARED ON OR AFTER 
 
           Subpart I_Public Assistance Insurance Requirements
 
Sec.  206.253  Insurance requirements for facilities damaged by disasters 

other than flood.

    (a) Prior to approval of a Federal grant for the restoration of a 
facility and its contents which were damaged by a disaster other than 
flood, the

[[Page 479]]

Grantee shall notify the Regional Director of any entitlement to 
insurance settlement or recovery for such facility and its contents. The 
Regional Director shall reduce the eligible costs by the actual amount 
of insurance proceeds relating to the eligible costs.
    (b)(1) Assistance under section 406 of the Stafford Act will be 
approved only on the condition that the grantee obtain and maintain such 
types and amounts of insurance as are reasonable and necessary to 
protect against future loss to such property from the types of hazard 
which caused the major disaster. The extent of insurance to be required 
will be based on the eligible damage that was incurred to the damaged 
facility as a result of the major disaster. The Regional Director shall 
not require greater types and extent of insurance than are certified as 
reasonable by the State Insurance Commissioner.
    (2) Due to the high cost of insurance, some applicants may request 
to insure the damaged facilities under a blanket insurance policy 
covering all their facilities, an insurance pool arrangement, or some 
combination of these options. Such an arrangement may be accepted for 
other than flood damages. However, if the same facility is damaged in a 
similar future disaster, eligible costs will be reduced by the amount of 
eligible damage sustained on the previous disaster.
    (c) The Regional Director shall notify the Grantee of the type and 
amount of insurance required. The grantee may request that the State 
Insurance Commissioner review the type and extent of insurance required 
to protect against future loss to a disaster-damaged facility, the 
Regional Director shall not require greater types and extent of 
insurance than are certified as reasonable by the State Insurance 
Commissioner.
    (d) The requirements of section 311 of the Stafford Act are waived 
when eligible costs for an insurable facility do not exceed $5,000. The 
Regional Director may establish a higher waiver amount based on hazard 
mitigation initiatives which reduce the risk of future damages by a 
disaster similar to the one which resulted in the major disaster 
declaration which is the basis for the application for disaster 
assistance.
    (e) The Grantee shall provide assurances that the required insurance 
coverage will be maintained for the anticipated life of the restorative 
work or the insured facility, whichever is the lesser.
    (f) No assistance shall be provided under section 406 of the 
Stafford Act for any facility for which assistance was provided as a 
result of a previous major disaster unless all insurance required by 
FEMA as a condition of the previous assistance has been obtained and 
maintained.