How The Federal Government Helps In Natural Disaster Relief

Some of the most devastating natural disasters in the United States have occured in recent years. The 2017 Atlantic hurricane season had 17 named storms and six major hurricanes, most notably hurricanes Harvey, Irma and Maria, which caused widespread damage to the southern continental U.S., as well as to Puerto Rico and the U.S. Virgin Islands. Hurricane Harvey alone resulted in 780,000 Texans evacuating their homes and more than 80,000 homes with at least 18 inches of floodwater.

That same year also saw 29 California wildfires, six of which became significant wildfires that resulted in nearly 308,000 burned acres and more than 230,000 people were forced to evacuate their homes. More than 10,000 homes were damaged or destroyed, according to the California Department of Forestry and Fire Protection.

If you are affected by a federally declared natural disaster such as a hurricane or wildfire, you may be eligible for assistance through FEMA’s Individual and Households Program (IHP).

What Assistance Does FEMA’s Individual and Households Program Provide?

The IHP is intended to help with basic needs and supplement disaster recovery efforts for eligible individuals and households who have been affected by a federally declared disaster and have uninsured or underinsured necessary expenses and needs.

While the IHP is not a substitute for insurance and cannot compensate you for all disaster losses, some of the financial and direct services the program can provide includes:

Funds for temporary housing if you cannot live in your home, such as rental assistance or hotel expenses
A temporary housing unit if you are not able to use rental assistance due to a lack of available housing
Funds to repair or replace owner-occupied homes, including privately-owned access routes such as roads, driveways and bridges
Funds for uninsured and underinsured disaster-related expenses and needs, such as repair and replacement of personal property and vehicles, moving and storage, medical care, dental care, child care, funeral expenses, and other items approved by your state, territory or tribal government
Funds for hazard mitigation assistance for homeowners to repair or rebuild more durable homes

If you are a disaster survivor, you can check if you are eligible for sheltering and housing assistance from FEMA.

Assistance That’s Not Offered by FEMA Disaster Relief

FEMA is not authorized to provide certain services, but there are alternatives through FEMA’s disaster assistance partners:

Emergency medical assistance: Dial 9-1-1.
Emergency shelter: You can find emergency shelter options by visiting the American Red Cross or Salvation Army. You can also check the FEMA mobile app to find open shelters. You can text SHELTER and your ZIP code to 43362. For example, SHELTER 12345. For Spanish, text REFUGIO and your ZIP code.
Immediate needs: Call your local emergency management agency for assistance. You may be able to find additional referrals by calling the FEMA Helpline at 1-800-621-FEMA (1-800-621-3362).

How Do I Apply for FEMA Disaster Relief?

To be eligible for FEMA disaster relief, a disaster must be declared by the president of the United States to assist in the recovery of the impacted area. To apply for assistance, FEMA requires the following steps:

Take photos of your damaged home and personal belongings.
Make a list of your damaged and/or lost items.
If you have insurance, you are required to first file a claim with your insurance company.
Apply for disaster relief by one of the methods below.

By internet or smartphone

You can apply for the individuals and household program online at DisasterAssistance.gov or by downloading the application from FEMA’s mobile app.

By phone

You can call FEMA at 1-800-621-FEMA (1-800-621-3362).

If you are deaf, hard of hearing or have a speech disability and use a text telephone, you can call 1-800-462-7585.

If you use 711 or Video Relay Service (VRS), call the standard FEMA helpline at 1-800-621-FEMA (1-800-621-3362).

In person

You can visit a FEMA Disaster Recovery Center. To find a location:

Visit DisasterAssistance.gov
Check FEMA’s mobile app
Call the FEMA helpline at 1-800-621-FEMA (1-800-621-3362)

A member of the Disaster Assistance Recovery team may visit door-to-door in areas affected by a disaster. They will have an official FEMA photo ID.

What if FEMA Denies My Disaster Relief Application?

If FEMA denies your application, you can do the following:

Submit an appeal within 60 days of the date on your eligibility letter.
Provide a written explanation why you believe FEMA’s decision is incorrect. Include copies of documents that support your appeal. Your full name, FEMA application number, pre-disaster primary residence address, current phone number and current address must be included on all submitted documents.

You can mail an appeal to:
FEMA
P.O. Box 10055
Hyattsville, MD 20782-8055

Or fax your appeal to 800-827-8112 Attn: FEMA Appeals Officer

You will get a decision letter within 90 days of FEMA’s receipt of your appeal. You can check the status of your appeal at DisasterAssistance.gov or by calling FEMA’s helpline at 1-800-621-FEMA (1-800-621-3362).

What Other Types of Disaster Relief Does FEMA Provide?

FEMA offers additional individual assistance programs, including:

Crisis counseling: This program assists with recovering from the effects of a disaster through community-based outreach and educational services.
Disaster unemployment: This program provides unemployment benefits and re-employment assistance services under the responsibility of the U.S. Department of Labor.
Disaster legal services: This aid provides free legal assistance to low income individuals who are unable to secure legal services for disaster-related needs.
Disaster case management: This service assists individuals with unmet needs caused by a disaster, such as financial, physical, emotional or spiritual well-being.
Disaster Supplemental Nutrition Assistance Program (D-SNAP): This assistance provides one month of benefits on a debit card you can use at most grocery stores. Once your state establishes a D-SNAP program, you have about one week to apply. If you qualify you’ll get benefits within three days.
Low Income Home Energy Assistance Program (LIHEAP): This program helps pay for utility bills, reconnecting utilities, repairing or replacing your furnace and air conditioners and repairing home insulation. It also helps pay for the purchase of coats and blankets, and fans and generators.
Tax relief in disaster situations: You can get a faster refund by filing an amended return. You are required to claim the disaster-related losses on your tax return for the previous year.

Small Business Administration Disaster Recovery Loans

The Small Business Administration (SBA) offers low interest loans to homeowners, renters, nonprofit organizations and businesses affected in regions by declared disasters. The loans can be used to repair or replace the following items:

Real estate
Personal property
Machinery and equipment
Inventory and business assets

Homeowners and renters can borrow up to $40,000 to repair or replace the following items that were damaged or destroyed by a declared disaster:

Clothing
Furniture
Cars
Appliances

Homeowners can apply for up to $200,000 to repair or replace their primary residence to its pre-disaster condition. Secondary homes are not eligible for a disaster recovery loan.

The interest rates on SBA disaster recovery loans are based on your resources. The lower interest rate will not exceed 4% and the interest rate associated with the current market rate will not exceed 8%. The rates are for the fixed term of your loan.

If you live in an area affected by a declared disaster, you can apply online for a disaster loan. An online application is the fastest way to get a decision about your loan eligibility, according to the SBA.

You can also apply by mail. Homeowners and renters are required to register with FEMA to get a FEMA Registration ID number by calling 1-800-621-3362. You will need to download, print and complete disaster loan application forms. The completed forms can be mailed to:

U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Ft. Worth, TX 76155-2243

Do not wait for your insurance settlement to file your loan application or you may risk missing the application deadline. Your final insurance information can be added after a settlement is made. Proceeds from your insurance settlements will be deducted from the total damage to your property to determine the loan amount you are eligible for.

What if I Can’t Afford an SBA Disaster Loan?

If you are a homeowner or renter and cannot afford an SBA disaster loan, the SBA will automatically refer you to FEMA’s Other Needs Assistance (ONA) program. This program is intended to assist with needs such as transportation, personal property losses, childcare, medical and dental expenses, funeral costs, moving and storage and miscellaneous expenses, such as smoke detectors.

You will not be referred to ONA unless you complete an SBA loan application. You will also need to meet the following conditions:

You have losses in a declared disaster area
You have no insurance or your insurance does not cover all of your damage or loss
You or someone who lives with you is a U.S. citizen, a non-citizen national or a qualified alien
You have serious needs or necessary expenses because of a declared disaster
You have accepted help from all other sources, such as insurance and SBA disaster loans

How Is a Disaster Declared?

The president of the United States must declare a disaster. Requests for a disaster declaration must be made by the affected state’s governor, according to the Robert T. Stafford Disaster Relief and Emergency Act.

There are two types of disaster declarations:

Emergency declarations: These are made for any occasion when the president determines federal assistance is necessary. This supplements state and local efforts in providing emergency services to protect lives, public health and property. The total amount of assistance for a single emergency may not exceed $5 million. If this amount is exceeded, the president must report to Congress.
Major declaration: The president can declare a major disaster declaration for any natural event, such as hurricanes, tornadoes, storms, wind-driven water, tidal waves, tsunamis, earthquakes, landslides, mudslides, volcanic eruption, snowstorms, drought, fire, floods and explosions. A major disaster declaration provides a wide range of federal assistance programs for individuals, including funds for emergency and permanent work.

Insurance for Disasters

FEMA disaster relief, SBA disaster loans and other federal relief programs are not substitutes for insurance. If you are hit by a natural disaster, a comprehensive insurance plan can help you recover faster and avoid devastating financial consequences.

Here are a few benefits of having insurance for natural disasters:

Insurance does not require a disaster declaration. To be eligible for federal disaster relief, a disaster must be declared by the president. That means if you are hit by a disaster that is not declared, you won’t receive any federal funds or services.
You do not have to repay an insurance settlement. Your insurance settlement can be used to repair and replace your home and personal belongings. A disaster loan through the SBA has to be repaid, with interest.
Insurance covers additional living expenses. If you cannot live in your home due to a problem covered by your policy (like a wildfire), the “additional living expenses coverage” in your homeowners insurance policy can reimburse you for extra costs such as hotel bills, restaurant meals and other services, such as dog boarding.

Insurance Options for Natural Disasters

Home insurance can cover a wide range of problems, including damage from wildfire, explosions and tornadoes. But it does have some holes that you may want to plug with extra insurance, depending on where you live.

Flood insurance

A standard home insurance policy excludes flood-related damage. You can buy flood insurance in one of two ways:

National Flood Insurance Program (NFIP). Most folks who have flood insurance buy NFIP flood insurance, which is managed by FEMA. To be eligible for an FEMA flood insurance policy, you must live in an NFIP participating community. There’s typically a 30-day waiting period before an NFIP policy is effective.
Private flood insurance. If you are not eligible for an NFIP policy or its coverage amounts are insufficient for your needs, you can buy flood insurance from a private insurer. You can get private flood insurance as your base policy or as an excess policy that supplements an NFIP flood insurance policy.

Read more: Guide to flood insurance

Hurricane insurance

A standard home insurance policy won’t always cover you for all hurricane-related problems, such as wind (in some coastal areas) and flood water. A hurricane insurance plan combines home insurance with additional insurance types as needed, such as:

Flood insurance. Home insurance covers wind-driven rain, such as rain that gets in through a damaged roof, but it won’t cover flood damage.
Wind insurance. Homeowners in some coastal areas may have home insurance policies that partially or completely exclude wind-related damage. You may be able to add wind insurance as an endorsement to your home insurance policy, as a separate windstorm and hail policy, or through your state’s Fair Access to Insurance Requirements plan (FAIR plan) or Beach and Windstorm plans.

Read more: How to get hurricane insurance

Earthquake insurance

Earthquake-related damage is typically excluded from a standard home insurance policy. If you live in an area prone to earthquakes, you can buy a separate earthquake insurance policy to cover your home, personal property and additional living expenses.

Comprehensive car insurance

Flood damage to your car is covered under comprehensive car insurance, which is optional, and carries a deductible, meaning the amount deducted from an insurance claim check.

Comprehensive insurance pays to repair your vehicle if it’s damaged from flooding, hail or falling objects, such as a big tree branch, and other problems. So it’s wise to have comprehensive coverage on your vehicle if you live in an area prone to floods or tornadoes. Comprehensive can pay you the actual cash value of your car if it’s totaled from storm damage.