If you look in the FEMA site, they say that they provide gramts to perform repairs not covered by insurance. And no, they don't do a needs test. Now, the typical rich person does not let their insurance lapse just so that they can get a FEMA grant. Because such a grant is no sure thing. They also point out that SBA loans are the main source of assistance following a disaster. You get a break on interest, but you have to pay them back.