Categorizing Losses

DISASTERRECOVERYTODAY.COM

...zone will be reduced by the amount that would have been available from a standard NFIP flood policy whether or not the facility was actually insured.

Equipment

Office equipment and furniture should be replaced with used or surplus, if available. Repair if feasible.

Supplies

Consumable supplies will be replaced to pre-disaster quantities.

Vehicles

Special equipment, such as two-way radios, is eligible. Blue Book prices should be used and salvage taken. Check for comprehensive insurance. If repair costs exceed $5,000, an insurance commitment will be required equal to the amount of damages.

Grounds

Grounds around buildings may be included with building structure if it is to be handled as a single project, except trees and other plantings, which are not eligible.

Cleaning

For buildings with light damage, cleaning and painting is eligible.

As discussed in a previous edition of Disaster Recovery Today, FEMA and Subrecipients often disagree on building repairs, codes and standards, and equipment claims. The following should be kept in mind when dealing with Category E losses:

• While it is appropriate for FEMA to replace a piece of equipment with “like, kind and quality,” including a used item, such an item may not be readily available, thus a new item may have to be purchased.
• FEMA must use the Cost Estimating Format (CEF) to determine repair costs for large projects. It is important for Subrecipients to work with FEMA in determining the correct cost factors such as an extraordinary demand caused by the event and the appropriate costs for materials, overhead and profit, etc.
• If a Subrecipient is claiming an upgrade based on local codes or standards, they must be prepared to demonstrate that the standard existed prior to the event and that it is enforceable.
• Locate and duplicate original building drawings/plans or major repair plans for submission to FEMA.
• Photographs before, during and after are extremely valuable.

“If a Subrecipient is claiming an upgrade based on local codes or standards, they must be prepared to demonstrate that the standard existed prior to the event and that it is enforceable.”