FEMA Denial Letter: Not The Last Word
Release Date: June 24, 2008
Release Number: 1766-019
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INDIANAPOLIS, Ind. -- Indiana's Department of Homeland Security wants anyone who has applied for disaster assistance through the Federal Emergency Management Agency (FEMA) and received a letter saying his/her application is denied to not be alarmed. Denial letters are automatically generated and sent to applicants who need to supply additional information so FEMA can continue to process their applications.
"A denial letter does not necessarily mean that an applicant is not eligible for assistance," said Federal Coordinating Officer Michael Smith of FEMA. "It may mean that FEMA needs more information to make a decision about the amount of disaster assistance an applicant may be eligible for, such as information about insurance coverage or a clarification of information already provided, or about residential status."
Applicants should be aware that, for damage to real estate, FEMA only covers primary residences. By law, we cannot cover secondary or vacation homes, or rental property. For rental property, a low-interest disaster loan from the Small Business Administration may be available.
Also, FEMA and the state cannot duplicate what insurance already covers. That is why FEMA needs to know what is covered by insurance before making a decision about possible assistance. To continue processing an application, FEMA needs copies of the insurance settlement or a "denial of coverage" letter, or any other supporting documentation.
FACTS
FEMA places all requests for disaster assistance on hold and sends out a denial letter when an applicant indicates that he/she has insurance coverage or when the applicant does not live in a presidentially-declared disaster area.
Denial because of insurance coverage
- The code "INS" means that the applicant has reported he/she has insurance.
- An inspector will not be sent to verify damages covered by insurance, and a letter is sent declining assistance-at least until a more complete picture of insurance coverage and the nature of the damage is available.
- FEMA cannot duplicate what insurance already covers, or pay deductibles; but in some cases FEMA may be able to help with eligible under-insured losses.
- If the applicant's insurance settlement is not imminent, he/she may wish to ask for a "delayed settlement" letter from the insurance agent.
- Applicants have up to 12 months from the date they register with FEMA to submit insurance information for review
The applicant lives in an undesignated county
- Residents who apply for assistance in undesignated counties will receive a letter telling them that they are ineligible. If those counties are added, the denials will be reviewed and, if facts justify, will be corrected automatically without the need for applicants to call again.
Other reasons for denial
- FEMA may need additional information to prove occupancy or ownership of the damaged property; or the applicant may need to complete and return the U.S. Small Business Administration (SBA) loan application sent in the mail.
FILING AN APPEAL
The process for sorting out these issues involves filing an appeal letter which must be postmarked within 60 days of the date of the denial letter's date. Write a letter asking FEMA to review your case. The denial letter sent by FEMA explains why your application is on hold and may request new information and documentation, such as settlement or denial information from your insurance company.
RETURN THE SBA APPLICATION
FEMA reminds applicants to return the completed SBA loan application even if they choose to decline the SBA loan. Filling out the SBA loan application is a necessary step if applicants are to be considered for other forms of disaster assistance.
APPLICANTS NEEDING RENTAL ASSISTANCE
FEMA recognizes that applicants may have serious and necessary housing needs even if they have insurance. Those affected by the tornadoes, storms and floods may appeal to FEMA for rental assistance if one of the following applies:
- The applicant has used all available funds provided by his/her insurance company to rent a temporary place to live, usually called "Loss of Use" or Additional Living Expenses (ALE); or
- The applicant's insurance settlement is delayed longer than 30 days from filing the claim, and there is a need for an advance of rental assistance.
Those who need to update their application information, have received denial letters or have questions about disaster assistance are encouraged to call the FEMA helpline at 1-800-621-FEMA (3362). For those with speech or hearing impairments the TTY number is 1-800-462-7585. Other information can be found at www.fema.gov. The registration and helpline is open seven days a week, 24 hours a day. Applicants also may visit a local disaster recovery center to speak with someone in person.
PLEASE TELL YOUR NEIGHBORS.
All residents are encouraged to get involved with the recovery by helping spread the word about available assistance. Tell your neighbor.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
Last Modified: Thursday, 26-Jun-2008 14:53:02