Policy For Home Replacement Claims Approved
Release Date: November 1, 2000
Release Number: HQ-00-CG18
SANTA FE, N.M. -- Federal officials today announced a streamlined method for compensating individuals whose homes were destroyed in May's Cerro Grande Fire.
Cerro Grande Fire officials say the policy will provide fair and reasonable compensation for the replacement of homes, using modern, readily available materials to re-build them to current codes.
"We worked closely with members of the affected communities to develop options that will streamline and accelerate the rebuilding process," said David de Courcy, director of the Federal Emergency Management Agency's (FEMA) Cerro Grande Fire Compensation Program. "This policy promotes rebuilding and we hope it will speed the recovery process and stimulate the economic health of the entire community."
Two compensation options are available: a streamlined square-footage method and the individual review or so-called "stick-by-stick" method.
Under the square foot replacement rate the individual will receive a lump sum payment based upon the square footage of the destroyed home. In addition to those square foot base costs, compensation will be added for outbuildings, pitched roofs, metal gutters and downspouts. In order to simplify and move this compensation process along, claim reviewers will work with claimants to determine the eligible base costs. The square foot compensation for replacing a home in Los Alamos will be:
| Payment per square foot | ||
|---|---|---|
| Single Family Home | Duplex | Quadruplex |
| $160 | $150 | $140 |
The base costs awards are final and binding (permit costs are included in this rate).
Claimants will also receive compensation for design fees, site work, major appliances, communications, computer or cable systems, fireplaces, landscaping irrigations systems and landscaping. The miscellaneous category will replace items such as window coverings and all other personal property damaged or destroyed by the fire.
Using the "stick-by-stick" or individual review method, the claimant will be compensated based upon reasonable costs to replace their home according to code on the basis of the design prior to the fire. With this option, compensation will be based on individual elements of the destroyed home. This process will require that claimants provide details about their destroyed homes. It may take several months for the claims reviewer and claimant working together to complete the process.
In cases where numerous upgrades and other extra features were incorporated into a home, this option for compensation may be the best choice. FEMA will not compensate costs to replicate construction materials that are no longer reasonably and readily available, do not meet code, or are not reasonably necessary to rebuild the home. Individuals that choose this option will receive a design fee.
No matter which option a claimant chooses, every claim will be individually evaluated. Special teams will be in place at the Customer Service Centers to assist applicants with the housing replacement policy.
"Because no two claims are the same, things won't always be done the same way. Each claim will be evaluated on case-by-case basis," de Courcy said. "Our customer service representatives and claims reviewers stand ready to assist folks in our service centers, by telephone, or we can visit them at their residence.
This policy does not apply to mobile homes or manufactured homes. Once a claimant has selected an option, the decision is final and the other option is no longer available.
Last Modified: Tuesday, 30-Dec-2003 16:49:52