Categorizing Losses

8 D I SAS T E R R ECOVE RY TODAY.COM Use and Occupancy The building must have been in active use prior to the disaster. If only part of the building was occupied at the time of the disaster, or if the building was used for a less demanding function than its original purpose, then replacement will be made at the reduced size, or restoration will be limited to that required to resume the immediate pre-disaster use. Extensive Damage If repairs to a facility cost 50% or more of the cost of replacing the facility to its predisaster condition, the facility is eligible for replacement. This is known as the “50% Rule,” and is discussed in detail in FEMA’s Public Assistance Program and Policy Guide (PAPPG). Insurance Confirm and understand what insurance policies are presently in force. Insurance coverage pays first and remaining uninsured losses are eligible. If repair costs exceed $5,000, a general hazard insurance commitment will be required equal to the number of eligible damages. Repair costs for flood damages occurring to buildings and/or contents within the 100-year flood 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 repaired if feasible or replaced with used or surplus, where available. 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 number 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 “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.”

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