DAFS9580.3 explains that an applicant must seek out and maximize its potential insurance benefits; and advise FEMA of its insurance recoveries. According to 44 C.F.R. 206.250(c); FEMA deducts actual and anticipated insurance recoveries from otherwise eligible costs. The PA Guide states that FEMA generally reimburses the difference between the eligible costs and insurance proceeds when project costs exceed a policy limits or sublimits for certain hazards such as flood. The record confirms: (1) the Applicant reported its parking lot cleanup costs to the insurer in its insurance claim; (2) its land and water contaminant cleanup coverage was subject to the policy Flood Zone A sublimit; and (3) no additional insurance proceeds were available under that coverage for the costs reinstated in Version 1 because the Facility is in Flood Zone A; and the policy Flood Zone A sublimit was exhausted.

HeadnotesDAFS9580.3 explains that an applicant must seek out and maximize its potential insurance benefits; and advise FEMA of its insurance recoveries. According to 44 C.F.R. § 206.250(c); FEMA deducts actual and anticipated insurance recoveries from otherwise eligible costs. The PA Guide states that FEMA generally reimburses the difference between the eligible costs and insurance proceeds when project costs exceed a policy’s limits or sublimits for certain hazards such as flood. The record confirms: (1) the Applicant reported its parking lot cleanup costs to the insurer in its insurance claim; (2) its land and water contaminant cleanup coverage was subject to the policy’s Flood Zone A sublimit; and (3) no additional insurance proceeds were available under that coverage for the costs reinstated in Version 1 because the Facility is in Flood Zone A; and the policy’s Flood Zone A sublimit was exhausted.