Categorizing Losses

Disaster Recovery Consulting


This issue of Disaster Recovery Today® focuses on categorizing losses using the required FEMA categories. This step is the third in a nine-step process identified by Tidal Basin to respond to a declared disaster.

Following a disaster, categorizing losses must be accurately performed to avoid future conflicts with FEMA. This issue breaks down the categories and describes how each is to be used.

Your comments, suggestions and requests for back issues are always welcome.

Using the Required FEMA Categories to Properly Handle Emergencies

In the previous issue of Disaster Recovery Today®, the focus was on assessing and documenting losses caused by a disaster. If the event is of such magnitude that federal aid is declared, the losses will need to then be categorized by FEMA categories A through G. These categories are separated into two sections:

Categorizing Losses Emergency Work (Categories A & B) and Permanent Work (Categories C through G).

Distinguishing between Emergency and Permanent Work is important since FEMA considers a Subrecipient’s 1 internal labor (force account) differently depending on which category the costs were incurred under; and in some instances offers an enhanced cost share for Emergency Work.

1 FEMA uses the term“Subrecipient”when referring to the entity responsible for a project.