FEMA/State May Help The Uninsured And Underinsured 

Release Date: October 5, 2005
Release Number: 1605-052

» More Information on Alabama Hurricane Katrina

MONTGOMERY , Ala.-- Disaster officials have a message of hope for property owners and renters who came up short on insurance settlements for damage caused by hurricanes Rita and Katrina.

Many Gulf Coast residents dealing with hurricane damage caused by Hurricane Katrina are realizing the insurance policy they bought in the past won't pay enough to cover all of the storm damage. This is due to rising property values, labor costs, and the price of materials. A possible solution may be disaster assistance from the Federal Management Emergency Agency (FEMA) for uninsured loss or damage.

Michael Bolch, senior deputy federal coordinating officer said, "Disaster assistance is designed to cover uninsured and under-insured disaster-related losses. It cannot duplicate services and funds provided by insurance or another assistance program." Bolch explained that residents should first file a claim with their insurer and then register with FEMA to preserve their disaster assistance options.

Another source of possible funding is U.S. Small Business Administration (SBA) low-interest loans. The SBA encourages disaster victims to submit their loan application as soon as possible and reminds them that insurance claims need not be settled first.

State Coordinating Officer Bruce Baughman said, "After you file a claim, keep in close contact with your insurance adjustor and keep your agent advised if your address or phone number changes." Baughman also encourages early filing and being sure to keep the appointment when the adjustor comes to verify your loss.

To register, call 800-621-FEMA (3362) or TTY 800-462-7585 for the hearing-or speech –impaired. The lines are open 24 hours a day, seven days a week, until further notice. Multilingual operators are available.

FEMA prepares the nation for all hazards and manages the federal response and recovery efforts following an incident of national significance. FEMA also initiates mitigation activities to reduce the risk of loss in future disasters, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.

Last Modified: Wednesday, 05-Oct-2005 08:32:31