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By Murray Wennerlund published 9-28-2023 updated 11-29-2023
At this stage, you should have collected the majority of the information needed to plan your disaster recovery route. If you haven't, it's crucial to revisit Week 1 processes.
In Week 2, you'll focus on filing appeals and preparing to catalog your losses, from structures to personal belongings within those affected structures. Remember not to discard anything that could potentially be cleaned, restored, and reused.
Revisit your insurance coverage from Week 1, ensuring you grasp whether you have replacement value plus depreciation or an item replacement policy. This knowledge will be vital moving forward.
- The debt burden level has been evaluated. It's essential to grasp your discretionary income.
- You've made initial contact with your state agency overseeing HUD CDBG-DR grants.
- You've received written confirmation of your maximum insurance coverage amount.
- You've examined your pre- and post-disaster reimbursable expenses endorsed by FEMA and verified their accuracy.
- You're presently gathering specific details for filing FEMA and private insurance appeals.
During Week 1, you gained insights into Debt Burden and how to determine its actual cash value. Now, it's time to start a spreadsheet or use a notepad to log all financial transactions within your household, including income earned by household members aged 15 or older. This will aid in monitoring the financial inflow and outflow in your household.
If you're employed with a W-2 worker status or if you're an independent contractor with a G-1099 status, always refer to your Adjusted Gross Income (AGI) to calculate your household Average Median Income (AMI), unless specified otherwise. For G-1099 Independent Contractors providing labor services, use AGI for service labor after deducting expenses and overhead. For G-1099 Independent Contractors earning from retail sales, calculate AGI from Cost of Goods Sold (COGS) minus expenses and operating costs. Your AGI will be used for Average Median Income (AMI) percentages, which determine your eligibility for grants.
To summarize, Use Adjusted Gross Income (AGI) to calculate your household Average Median Income (AMI). For G-1099 Independent Contractors, consider AGI for labor after expenses. For those in retail, compute AGI from Cost of Goods Sold minus expenses. AGI impacts grant eligibility based on AMI percentages.
If your primary residence incurred less than $41,000 in total damages, as per a reliable contractor's estimate, you can appeal to FEMA using that quote. FEMA will award you their maximum amount of $41,000. However, if this amount falls short, even when combined with your savings and retirement funds, you must proceed by maximizing every federal and insurance dollar. This is crucial for determining the most effective recovery path for your household.
Once you've gathered sufficient funds to restore your household after the disaster, you can halt the fund gathering process with FEMA, private insurance, and personal savings. This allows you to promptly commence the actual repair or reconstruction work.
If your damages exceed $41,000 and even surpass your private insurance coverage, it's crucial to continue seeking funding for your repairs. This strategy is applicable across all income brackets.
Additionally, it's important to wait for all damage assessments to be finalized, estimates to be calculated, and mitigation plans to be reviewed. This ensures a comprehensive and well-informed approach to your recovery process.
Identify appeals to file based on cash value of grant.
Have you received the maximum cap based on estimates or the maximum amount of the following grants?
- FEMA provides a maximum award of $41,000 for structural repairs.
- Reimbursed or paid in advance for short term shelter and displacement costs to include food, travel, lodging.
- FEMA provides transitional housing assistance for up to 18 months, which can be extended by your governor for up to 32 months.
- Confirm that you have obtained transportation aid, Disaster Unemployment Assistance, food support, and any necessary medical assistance.
If you haven't secured the maximum grant from FEMA and haven't appealed the initial assistance offer from FEMA or Private Insurance, it's essential to address this before moving forward.
As the second week after the disaster unfolds, you'll begin to understand the challenges ahead, whether through research or personal experiences. This brings up a pivotal question for your household: How can you ease your disaster debt burden?
Consider options like filing appeals, seeking legal advice, reaching out to your congressional representative, contacting your state representative, engaging with your local municipal government, or writing to officials in Washington D.C.
FEMA Responses: "Approved," "Denied," or "Partial Approval."
These responses determine whether and to what extent an applicant's request for aid has been granted or denied in the wake of a disaster or emergency.
After a review of your application, FEMA will make one of the following decisions:
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Approval:
If the applicant meets the eligibility requirements and the disaster's impact is verified, FEMA will approve the application. This approval results in the provision of financial assistance or other forms of aid to help individuals, households, or communities recover from the disaster. -
Denial:
If the applicant does not meet the eligibility criteria or the disaster's impact is not substantial enough, FEMA may deny the application. In this case, the applicant will receive a notification explaining the reasons for the denial. -
Partial Approval:
Sometimes, FEMA might partially approve an application. This means that the applicant may be eligible for some types of assistance but not others. For instance, an applicant might receive approval for housing assistance but not for personal property replacement.
It's important to thoroughly read any communication received from FEMA after applying for assistance, as it will detail the decision made and provide information on how to appeal if necessary.
Many disaster survivors who were denied assistance were denied because their application was not completed correctly or the damage was underestimated.
Completing the FEMA application accurately and thoroughly is crucial for a successful outcome. Underestimating the amount of damage or failing to provide comprehensive information can indeed lead to denials of assistance. When applying for FEMA aid, it's important to:
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Provide Accurate Information:
Ensure that all the information you provide in the application is accurate and up-to-date. This includes details about the extent of the damage, the types of losses incurred, and your personal information. -
Document All Damage:
Take clear and detailed photographs or videos of the damage caused by the disaster. This documentation will serve as evidence of the extent of the damage and help support your application. -
Estimate Costs Realistically:
When estimating the cost of repairs or rebuilding, consider current market rates. Underestimating costs might lead to insufficient assistance being provided. -
Submit Required Documentation:
Be sure to include all required supporting documents with your application. This can include property ownership documents, insurance information, and any other relevant paperwork. -
Review and Verify:
Before submitting your application, review it carefully to ensure that all information is accurate and complete. Double-check calculations and figures. -
Appeal Process:
If your application is denied, you have the right to appeal FEMA's decision. The denial letter will provide information on how to start the appeals process. Make sure to follow the instructions closely and provide any additional information or documentation that could strengthen your case.
FEMA's goal is to assist those who have genuinely been impacted by disasters, but they rely on accurate information to make fair decisions. Taking the time to complete the application correctly and provide comprehensive documentation can significantly improve your chances of receiving the assistance you need. Keep in mind that FEMA primarily focuses on providing temporary shelter assistance rather than extensive home repair assistance.
