A Second Disaster Strikes: Will FEMA Pay Again?

The waiver application requires the applicant to:

1. Procure NFIP flood insurance for building and contents for all flood-damaged facilities;
2. Allocate a reasonable portion of the applicant’s operating budget [percentage of operating budget as outlined by the commissioner’s letter] to purchase property insurance for facilities that are the subject of Public Assistance grants;
3. Procure property coverage, including wind and other perils (exclusive of flood), up to the replacement cost if budget allows;
4. Attempt to negotiate deductibles that are 10 percent or less, but that do not exceed 15 percent;
5. Separate business interruption and liability insurance from these considerations unless it can be shown that this expense is being incurred to meet FEMA Public Assistance Program grant requirements;
6. Provide documentation of compliance with the above criteria.

The actions of Louisiana’s Commissioner of Insurance afforded by the Stafford Act and the McCarran-Ferguson Act [15 U.S.C. §20] is a vital link in the state’s recovery. Adjusters International and SIGMA Consulting are proud to have participated in this effort to bring insurance relief to Katrina applicants.

“Under the authority granted to me by the Stafford Act as the Commissioner of Insurance for the State of Louisiana, I hereby certify that commercial insurance coverage for the perils of flood and wind is not reasonably available to Applicants in order for Applicants to procure property insurance coverage for the full amount of their eligible disaster assistance to be received under the Stafford Act for damages sustained as a result of Hurricanes Katrina and Rita.”

James J. Donelon, Louisiana Commissioner of Insurance

Letter to President George W. Bush, August 10, 2007

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