What to Do When FEMA Denies the 'Insured'
Release Date: October 3, 2003
Release Number: 1490-28
» More Information on North Carolina Hurricane Isabel
Raleigh, NC-Many North Carolinians who registered with the Federal Emergency Management Agency (FEMA) after Hurricane Isabel are receiving letters indicating they will get no aid because they are "INS-insured."
But that letter is not the final word, according to disaster officials.
"We may still be able to help," explained Gracia Szczech, the officer in charge of federal recovery assistance. "On the one hand, tax dollars will not be used to pay for what insurance covers. On the other hand, even people who have insurance may find some losses are not insured, or that they need money faster than insurance will pay. In either case, we may be able to help."Szczech said people whose property was damaged by Hurricane Isabel should register with FEMA at 1-800-621-FEMA (3362, or TTY 1-800-462-7585), and also contact their insurance agent. That way they will be in the FEMA system, in case they later find they have uninsured losses. They may be eligible for FEMA aid for uninsured damage-for example, damage caused by flooding instead of wind, or payments for temporary housing while they cannot live in their damaged home.
Even if they get a letter saying their application with FEMA was denied because they are "INS-insured," FEMA might be able to help in two ways.
First, when the insurance settlement comes through, it may not cover all their eligible losses. Applicants can simply fax or mail their insurance information to FEMA, or take it to a Disaster Recovery Center (DRC). They will then get FEMA aid for their eligible costs not covered by insurance, up to the maximum allowable.
Second, applicants may find they need cash while waiting for their insurance settlement. In that case, Szczech said, they need to get a document from their insurance company that shows they have made a claim, and that the claim has not been paid and will not be paid right away. They then fax or mail that document to FEMA (as explained in the letter), or bring it to a DRC, and FEMA can inspect the damage and advance the money, usually in a few days. The applicant will have to repay the part covered by insurance when their settlement comes through.
"Being denied FEMA aid because you are 'INS-insured' is not necessarily the end of the story," Szczech emphasized. "Work with your insurance agent. Work with us. We will get you every dollar you qualify for. And if you need cash fast, we can often help."
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: Friday, 03-Oct-2003 15:55:39