🛡️
Required Coverage
Insurance would be required for damaged public facilities receiving permanent repair funding.
Risk Transfer + Asset Data
Insurance, Risk Pools, and Smart Asset Registry
The RAPID proposal strengthens obtain-and-maintain insurance, encourages self-insurance and risk pools, and may require a centralized digitized registry of public and PNP facilities receiving permanent repair funding.
Section 01
The obtain-and-maintain requirement becomes a performance lever.
The report builds on existing insurance requirements by adding incentives for STTs to prioritize insurance and self-insurance for damaged public facilities.
💰
No Federal Offset
The report states parametric funding would not be reduced by insurance proceeds, encouraging maximum coverage.
📌
Declared Retention
Every SLTT should declare its self-insured dollar amount as part of risk-finance transparency.
Section 02
Self-insurance and risk pools are encouraged through faster approval and funding options.
The proposal calls for streamlined templates for approval of SLTT self-insurance plans and risk pools, and allows a portion of unused funds to establish a new self-insurance program or risk pool.
Risk Pool Design Elements
Member eligibilityCovered assetsDeclared retentionReinsurance layerClaims protocolAudit verification
Section 03
The centralized asset registry becomes the backbone of audit and insurance compliance.
The report says STTs may be required to maintain and publicly publish a centralized, digitized registry of all public and PNP facilities receiving permanent repair funding, including insurance details.
🏷️
Facility Identity
Facility name, owner, applicant, location, facility type, and permanent repair funding status.
📐
Exposure Attributes
Replacement value, occupancy/function, hazard zone, elevation or flood exposure, and criticality.
📄
Insurance Fields
Coverage type, policy limits, deductibles, self-insured retention, carrier or pool, and obtain-and-maintain status.
Parametric connection: A smart asset registry lets applicants compare trigger payouts to facilities, insurance layers, mitigation status, and public-function exposure.
Section 04
Insurance and mitigation are linked to reduce future premiums and federal exposure.
The report allows funds to support mitigation measures that may reduce insurance premiums and create stronger financial incentives for resilience.
🏗️
Premium Offset for Mitigation
Funds may support public entities and PNPs implementing mitigation measures that can lower premiums.
🌊
Flood Insurance Incentives
The report also identifies tax incentives to reduce the financial burden of flood insurance and reward insured households.
Section 05
Compliance is verified through audits, with future federal share at risk.
The proposal verifies insurance compliance through the two-phase audit process rather than FEMA project-by-project review. Non-compliance can reduce future federal shares of parametric payouts.
Insurance Compliance Audit =
Registry Facility List
+ Coverage Evidence
+ Declared Self-Insured Amount
+ Mitigation / Premium Offset Records
+ Non-Compliance Penalty Assessment