The opinion of the court was delivered by: Dennis M. Sweeney Special Master
REPORT AND RECOMMENDATION CONCERNING THE WAIVER CLAIM OF MICHAEL J. AND ALICE L. DARAS
This constitutes the Report and Recommendation to the Court concerning the waiver claim of Michael J. and Alice L. Daras pursuant to Part 1.f of the Memorandum Order of the Court (Document 467). In preparing this report, the Special Master reviewed the motions, memoranda, affidavits and exhibits provided in connection with the process specified in the Memorandum Order. As necessary, the Special Master also reviewed other documents that are part of the Court filings in this case. The Special Master was also provided by the Federal Emergency Management Agency ("FEMA") the computer disc of the "appropriate documents of record" for this claim, as specified in Part 1.a of the Memorandum Order. In this case, the documents consist of 731 pages labeled FEMA-000001 to 000731.
Plaintiffs' property located at 15092 Chesapeake Bay Drive, Scotland,
Maryland, was insured by Travelers Standard Fire Insurance Company
("Travelers") under Policy Number 6002667654, with $194,000.00 in
building coverage subject to a $500.00 deductible. See FEMA-000005. On
September 18, 2003, Plaintiffs' covered property suffered damage as a
result of Hurricane Isabel. See Doc. No. 303-2 at ¶5.*fn1
On September 22, 2003, Plaintiffs notified Travelers of their
loss. See FEMA-000215.
On September 26, 2003, at the request of Plaintiffs, Travelers issued an advance payment of $5,000.00. See Doc. No. 303-2 at ¶7. On November 19, 2003, Plaintiffs filed a Proof of Loss ("POL") for $132,963.69; id. at ¶8. On December 9, 2003, Travelers issued a check for $30,300.00 in partial payment of the November 19, 2003 POL. Id. at ¶9. On December 16, 2003, Travelers issued a further check in the amount of $97,663.69, which covered the balance of the November 19, 2003, POL. Id. at ¶10.
On December 10, 2003, Plaintiffs filed an Increased Cost of Compliance ("ICC") POL in the amount of $23,200.00, id. at ¶11, followed by Travelers issuing a check for $23,200.00 on January 8, 2004. Id. at ¶12.
On May 12, 2004, Travelers sent a letter to Plaintiffs informing them that they were eligible for replacement cost coverage in the amount of $12,036.44. Id. at ¶13. As a result, Plaintiffs filed two statements as to the full cost to repair or replace their damaged property, one for $11,283.25 and a subsequent one for $12,036.44. Id. On May 13, 2004, Travelers issued a check for $12,036.44; id. at ¶14.
In April 2004, Plaintiffs requested a review of their claim by the Hurricane Isabel Task Force ("Task Force"). Id. at ¶16. On June 21, 2004, the Task Force determined Plaintiffs were entitled to an additional $24,332.50. Id. at ¶17. On July 20, 2004, Plaintiffs submitted a supplemental POL for $24,332.50 based upon the approved amount from the Task Force. Id. at ¶ 18. On July 23, 2004, Travelers issued payment in full on the supplemental POL. Id. at ¶ 9.
On June 28, 2004, Plaintiff filed a Supplemental ICC POL for $30,000.00. Id. at ¶20. Travelers issued a check for $6,800.00, which represented the policy limit of $30,000.00 for ICC coverage after application of the previous ICC payment of $23,200.00 referenced above. Id. at ¶ 21.
Plaintiffs sought a second review by the Hurricane Isabel Task Force. On December 29, 2004, the Task Force completed its review and determined Plaintiffs were entitled to an additional net payment of $8,825.41. See FEMA-000146. On January 13, 2005, Plaintiff filed a Second Supplemental POL for $8,825.41. See Doc. No. 303-2 at ¶22. On January 20, 2005, Plaintiffs were paid that amount in full. Id. at ¶23.
The total amount paid to Plaintiffs is $208,158.04. Id. at ¶24. This total breaks down to $142,858.04 for damage to their structure after application of the $500.00 deductible; $35,300.00 (policy limit) for loss of contents after application of the $500.00 deductible; and $30,000.00 (policy limit) for ICC.
II. Waiver Claim and Denial
On February 22, 2008, Plaintiffs submitted a waiver application. See FEMA-0000001 through FEMA-000009. Plaintiffs claimed a shortfall of $53,467.37. FEMA-000005 and 000024. On August 18, 2008, ...