Insurance Doesn't Stop Disaster Assistance 

Release Date: October 13, 2003
Release Number: 1493-25

» More Information on District of Columbia Hurricane Isabel

WASHINGTON -- District of Columbia residents who have insurance may still apply for disaster assistance for damages and losses resulting from Hurricane Isabel announced officials from the D.C. Emergency Management Agency and the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA).

Federal disaster assistance helps with uninsured or under-insured losses caused by a disaster. Before making a decision, however, FEMA simply needs to know how much insurance is available to an applicant for disaster assistance before determining eligibility.

"Residents need to report any insurance coverage for their losses," said Scott Wells, FEMA's Federal Coordinating Officer. "Failure to report your insurance coverage could possibly create unnecessary delays in processing your claims and prevent you from getting the disaster assistance you need to aid in a speedy recovery from your Hurricane Isabel damages or losses.

"Current laws do not allow FEMA to duplicate benefits," continued Wells. "Therefore, any applicant whose application does not reflect accurate insurance data may experience a delay in the disaster assistance process."

Often, FEMA identifies an application for federal assistance as "pending" until an insurance claim is settled. If an applicant has received a letter from FEMA stating that disaster assistance is not available, it may mean that FEMA cannot complete an assistance evaluation process until all insurance claims are settled. Applicants may still be eligible for disaster funds and other types of assistance after they complete insurance claims process. Said applicants should contact the Helpline at 1-800-621-FEMA (3362) after completing the settlement process with their insurance companies.

"District residents should accurately report all insurance data during their initial application with FEMA to prevent the possibility of having to reimburse the government for unauthorized benefits when the case undergoes official audit at a later date," said DCEMA Director Peter LaPorte. "With accurate insurance data, applicants may receive disaster assistance in cases where insurance either does not cover the losses or only provides partial coverage."

"One area where that may apply is for those residents who had to relocate their families during the District's evacuation prior to the storm or in response to the power outages during the days after the hurricane. These residents may have returned home and found no damages, said Wells. "Since there were no damages, their lodging expenses may not be covered by insurance, but may be reimbursed through FEMA disaster assistance programs."

Any District of Columbia resident who receives a letter from FEMA stating that a claim for federal assistance has been deemed ineligible because of insurance should contact their insurance company and request a settlement letter or a copy of the exclusion from their policy. Mail that information and any new or additional information gained since the initial disaster assistance application filing, to the address provided in the letter from FEMA.

Applicants may also take the insurance settlement letter to one of the mobile District/FEMA Disaster Recovery Centers (DRC) where recovery specialists can assist the disaster-assistance applicant in updating an application for assistance. Applicants may call the FEMA toll free at (800) 621-FEMA (3362) or TTY (800)-462-7585 to obtain the locations and hours of the District's DRCs.

Any District resident with questions or concerns about how a private insurance carrier has responded to hurricane damage should contact representatives of the D.C. Department of Insurance and Securities Regulation at 202-727-8000 or visit the agency's web site at www.disr.dc.gov.

If FEMA determines that an applicant is not eligible for a grant, he or she may still be eligible for a low-interest loan from the U.S. Small Business Administration (SBA), Disaster Unemployment Assistance, free tax assistance, or one of many other programs designed to help disaster victims.

On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages Citizen Corps, the National Flood Insurance Program and the U.S. Fire Administration.

Last Modified: Tuesday, 14-Oct-2003 08:20:30