2 CFR §1130.205

1. (a)OMB guidance. OMB guidance in 2 CFR 200.310 includes a requirement for recipients' insurance coverage for real property and equipment acquired or improved under grants and cooperative agreements and states that federally owned property need not be insured unless required by Federal award terms and conditions.
2. (b)DoD implementation. A DoD Component's general terms and conditions must require recipients to provide insurance coverage for real property and equipment acquired or improved under awards. However, unless a statute or program regulation adopted in the Code of Federal Regulations after opportunity for public comment specifies otherwise, DoD awards will not require recipients to insure federally owned property.
3. (c)Award terms and conditions. A DoD Component's general terms and conditions therefore must either:
   1. (1)Include the wording appendix B to this part provides for Section A of PROP Article II; or
   2. (2)Reserve Section A of PROP Article II if there will be no real property or equipment acquired or improved under awards using those terms and conditions or subawards under those awards.