Fema Denial Letter Not the Last Word
OLYMPIA—Washingtonians who have applied for disaster assistance following the January floods and have received a denial letter should not be alarmed. Every homeowner who has insurance will get a Federal Emergency Management Agency (FEMA) denial letter if their insurance claim isn’t settled.
FEMA cannot provide assistance for temporary housing, home repairs or replacement which is available from another source, including insurance. But FEMA may be able to assist with losses not covered in an insurance policy.“A denial letter doesn’t automatically mean that an applicant is not eligible for assistance,” said Federal Coordinating Officer Willie Nunn. “Updated information from the insurance settlement will be needed. When that information is available, applicants can inform FEMA at the Helpline number, 1-800-621-3362 or talk to a representative at a Disaster Recovery Center.” FEMA and the Washington Emergency Management Division (WEMD) recognize that applicants may have unmet housing needs even if the homeowners have insurance.
“Those affected may appeal to FEMA for rental assistance if they have used all the rental funds provided by their insurance company or their insurance settlement is delayed longer than 30 days,” said State Coordinating Officer Kurt Hardin.
However, even before the insurance settlement is reached, homeowners can apply for U.S. Small Business (SBA) low-interest loans up to $200,000 for their primary residences, and up to $40,000 for uncompensated personal-property losses, including automobiles. SBA disaster loans can include the insurance deductible; FEMA grants cannot be used for the deductible Failure to complete an SBA loan application also may trigger a denial letter. Applying for an SBA loan may make the applicant eligible for other forms of disaster assistance.
FEMA leads and supports the nation in a risk-based, comprehensive emergency management system of preparedness, protection, response, recovery, and mitigation to reduce the loss of life and property and protect the nation from all hazards including natural disasters, acts of terrorism, and other man-made disasters.
FEMA’s temporary housing assistance and grants for public transportation expenses, medical and dental expenses, and funeral and burial expenses do not require individuals to apply for an SBA loan. However, applicants who receive SBA loan applications must submit them to SBA loan officers to be eligible for assistance that covers personal property, vehicle repair or replacement, and moving and storage expenses.
The Small Business Administration (SBA) is the federal government’s primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps homeowners, renters, businesses of all sizes, and private nonprofit organizations fund repairs or rebuilding efforts, and cover the cost of replacing lost or disaster-damaged personal property. These disaster loans cover uninsured and uncompensated losses and do not duplicate benefits of other agencies or organizations. Homeowners, renters and business owners with questions for the SBA should call the Customer Service Center at 1-800-659-2955 (TTY 1-800-877-8339).
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