An applicant may not receive funding from two sources for the same item of work. This is called a Duplication of Benefits. If an applicant can obtain assistance for a project  from another Federal  agency, then  FEMA cannot provide  funds for that project (see Other Federal Agencies).

Grants and cash donations received from non-Federal sources designated for the same purpose as public  assistance funds are generally  considered a duplication of benefits.  However, these  funds  may be applied towards the non-Federal cost share.  Grants  and  cash donations that  are received  for unspecified purposes or ineligible  work do not constitute a duplication of benefits.

A duplication of benefits  most  commonly occurs  with insurance settlements. If a damaged facility is insured, FEMA is required to reduce the  amount of the  grant  by any insurance proceeds that  the  applicant anticipates or receives for the insured facility, even if the applicant has not completed negotiations with the insurer. The applicant is required to provide information concerning insurance recoveries  to FEMA, including copies of all applicable policies. FEMA will review the insurance information and determine whether the settlement appears proper in terms of the provisions of the policy (see Insurance). The  retention of duplicated funds  is illegal and duplicated funds must be returned to FEMA.

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