This is what FEMA calls Insufficient Damage

  1. This is what FEMA calls "Insufficient Damage"

    i can't see that this is anything other than a co-ordinated effort to reject legitimate claims. i've spent many hours in Pleasant Grove and Concord, and this is the typical type of destruction there for as far as the eye can see in either direction. these people are completely disoriented and doing well just to hold onto what little bit they may have left. "deferred maintenance" makes no sense to me. some of the homes may be older, but even newer ones routinely have masonry demolished all the way to the slab. something is wrong at either FEMA or GAO, and it seems to span administrations.

  2. jcsd
  3. Re: This is what FEMA calls "Insufficient Damage"

    Private insurance companies pay claims.
  4. BobG

    BobG 2,338
    Science Advisor
    Homework Helper

    Re: This is what FEMA calls "Insufficient Damage"

    I don't know about the reason given unless it means they're only talking about damage not covered by insurance, but that family was clearly ineligible to receive FEMA disaster assistance:

    FEMA guidelines for eligibility for disaster assistance:

    (bolding mine)
  5. russ_watters

    Staff: Mentor

    Re: This is what FEMA calls "Insufficient Damage"

    Why would we even provide federal assistance to people without insurance? Are we trying to create a federal homeowners insurance program too?
  6. Re: This is what FEMA calls "Insufficient Damage"

    FEMA has a point. You can't live unsafely in that house.
  7. Re: This is what FEMA calls "Insufficient Damage"

    Let's hope not!

    I'm sure I sound like a broken record - but the insurance rules and regulations are different in every state. However, there is one truth - you are only covered for risks included in your coverage.
  8. Re: This is what FEMA calls "Insufficient Damage"

    well, there is a program in place to provide disaster assistance to homeowners. so at some point, a majority of congress thought it was a good idea. but with <1% of applicants being declared ineligible, that makes me think that perhaps claims are being rejected because of fraud by government officials. if scrapping the program is what the public wants to do, then let's do that. but let's not pretend that help is available for people that need it, when there is none. and let's not pay a bunch of paper pushers to process forms for a program that appears not to exist.
  9. Re: This is what FEMA calls "Insufficient Damage"

    Not always.

    Anyway, this is bad, yes, but, they filed for insurance and their house is covered by insurance, THUS why they are ineligible for aid. I can't speak for the others, but this one particular story seems like FEMA operated legitimately, since they said that their insurance covers it all.
  10. Re: This is what FEMA calls "Insufficient Damage"

    they must be well-coordinated with insurance companies if they can make such a determination so expeditiously.

    there is also:

  11. Re: This is what FEMA calls "Insufficient Damage"

    I couldn't find a good explaination without posting a book of links, but I suggest checking up on how flood insurance is managed. The channels between property insurers and different government entities are pretty open.

    Basically, the federal government subsidizes flood insurance with the private insurers actually brokering the policies. When a disaster hits, the federal government is totally defering to the insurance companies for the claims of the insureds. I wonder if something similar is going on here with FEMA and the insurance agencies for the extra funding.
  12. Re: This is what FEMA calls "Insufficient Damage"

    The National Flood Insurance Program (NFIP) was designed by the federal government to fill coverage gaps behind private insurance coverage. The program is administered by the Federal Insurance Administration (FIA).

    The program is typically available in "flood prone areas".
  13. Re: This is what FEMA calls "Insufficient Damage"

    Right, but it's basically just a fund for the insurance agencies to draw from to use against flood-certified policies. The insurance companies are the ones that facilitate the purchase, using the government's verbage, of the actual flood insurance. They're also the ones that handle the claims.

    The real point I was trying to get at - is the disaster money being handled in the same way (a subsidized pool to cover the extensive cost for the insurance companies)? In which case the homeowner may get some messages from either agency (government or insurer) in a vacuum without seeing what the other did.
  14. Re: This is what FEMA calls "Insufficient Damage"

    No smoke and mirrors - there are very specific coverage limits under the NFIP:

    Single family (building $250,000) and (Contents $100,000)

    Also, the federal emergency flood insurance program goes into effect when a community applies for the program and ends when all of the NFIP specifics are met and the regular program is able to begin. It provides a limited amount of coverage with subsidized rates. Limits include:

    Single family (building $35,000) and (Contents $10,000)
  15. Re: This is what FEMA calls "Insufficient Damage"

    I'm not trying to indicate any malintent, just miscommunication to the homeowner. The decision may have been made, in the OP's case, between the NFIP and their homeowners insurance already - then the NFIP was just quicker at delivering the news ;)
  16. Re: This is what FEMA calls "Insufficient Damage"

    It's been my experience, unfortunately, that most people wait until something happens to them to become informed and familiar with how their coverage works. (I've disclosed in previous threads I work professionally in the insurance industry)
  17. Re: This is what FEMA calls "Insufficient Damage"

    I think that makes sense though- generally people would have two contacts in insurance. First the salesman or HR rep who provides the initial policy information. And then if something goes wrong, the person handling the claim. If the original contact laid out what is covered in broad strokes, there is no need to deal with details until its time to make a claim.
  18. Re: This is what FEMA calls "Insufficient Damage"

    This does seem to be pretty common, but it's hard to take someone seriously if they enter into a written contract without reading it, then object to its terms.
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