What is the core difference in the legal liability between FEMA and a private insurance company following a declared disaster?

The core difference lies in the nature of their obligations and the scope of their coverage. FEMA (Federal Emergency Management Agency) provides disaster assistance as a governmental function under the Stafford Act, and its liability is generally limited to the terms and conditions of the Act and its implementing regulations. FEMA assistance is intended to supplement, not replace, private insurance coverage. A private insurance company, on the other hand, has a contractual obligation to its policyholders based on the terms of the insurance policy. The insurance company's liability is determined by the specific provisions of the policy, including coverage limits, exclusions, and deductibles. FEMA assistance typically covers needs not met by insurance, such as uninsured losses or expenses exceeding policy limits. In essence, FEMA's role is as a safety net, while the insurance company's role is defined by its contractual agreement with the policyholder.