Week 1 on windrainflood.com provides comprehensive guidance on accessing disaster relief resources during the first week of recovery. The website covers topics such as FEMA grants, insurance claims, and low-interest loans from the Small Business Administration (SBA). It also provides expert advice on safety, communication, and mitigation.
Week 1: General FAQs.
This section outlines the steps to ensure safety, contact authorities, contact insurance companies, register for federal assistance, document the damage, follow official instructions, mitigate further damage, keep records, seek local assistance, and stay patient and persistent.
This section explains the role of FEMA (Federal Emergency Management Agency) and SBA (Small Business Administration) in providing disaster assistance, such as grants and loans, to eligible homeowners.
The page advises homeowners to contact their insurance companies promptly, take time-date stamped photos and videos of the damage, and keep a record of all communication with insurers and agencies. It also warns homeowners to be aware of all their options before accepting any SBA disaster loan.
The Federal Emergency Management Agency (FEMA) and the American Red Cross are two such organizations that provide temporary housing assistance to eligible individuals and households affected by a disaster. FEMA's Individual Assistance program provides financial assistance to homeowners and renters, while the Red Cross offers shelters if you have to evacuate your home during a disaster.
The National Flood Insurance Program (NFIP) provides flood insurance to homeowners, renters, and business owners. It is designed to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.
The Disaster Home Loans program provides creditworthy homeowners with up to $200,000 to repair or restore their primary residence to its predisaster condition. The loans are designed to help homeowners affected by disasters who do not have the means to finance repairs or restoration themselves.
To apply for temporary shelter assistance, you need to register with FEMA. You can register online at DisasterAssistance.gov or by calling 1-800-621-3362. Once you've registered, you'll be able to find short-term shelter options near you and work towards long-term solutions.
The Small Business Administration (SBA) is a federal agency that provides support to small businesses and entrepreneurs. In the context of disaster recovery, the SBA offers low-interest disaster loans to homeowners and businesses to aid in recovery efforts.
FEMA grant is financial assistance that does not need to be repaid as long as the funds are used for approved activities outlined in your grant award documentation. A loan, on the other hand, is a sum of money that must be repaid with interest.
Contact your insurance company promptly to initiate the claims process. Make sure to document the damage by taking photos and keeping records of all communication with your insurer.
Volunteer groups like the Salvation Army and Habitat for Humanity provide disaster relief services, including temporary housing assistance. They also play a significant role in rebuilding communities and restoring infrastructure.
If the damage is severe and your home is not safe to inhabit or you are unsure, evacuate immediately and seek temporary shelter with friends, family, or at a designated emergency shelter. The safety of you and your family should be the top priority.
Week 1: Food Assistance.
Ensure you have enough food supplies on hand. Whenever someone offers you food or the opportunity to store it, accept it, even if you don't think you need it right away.
If you hear about food distribution centers set up nearby, make sure to assign at least one person from your household to go there for hot meals 2 to 3 times a day.
Certain food services operate from mobile units, and you'll need to listen for their announcements or updates. These units don't follow fixed routes and don't visit the same places frequently. Connect with your online community to locate these mobile food trucks, enabling you to meet them and obtain extra meals.
Food assistance programs, also known as SNAP, are managed at the state level and are separate from the FEMA process. FEMA later reimburses the state for providing this aid to disaster survivors. This assistance can be provided within 1 to 14 days following the disaster.
Major faith-based volunteer groups that respond with food aid after disasters include the Salvation Army, Southern Baptist Disaster Relief, Catholic Charities USA, Mennonite Disaster Service, Lutheran Disaster Response, and Samaritan's Purse.
Week 1: Shelter Assistance.
Securing shelter is your immediate priority. Whether it's staying in your car, setting up a tent in your front yard, hunkering down in your recreational trailer, or seeking refuge with friends and family, it's crucial to establish short-term shelter, which may last anywhere from 1 to 30 days, to provide you with the necessary time to find a long-term housing solution that will be offered by FEMA and HUD for up to 22 to 32 months if needed.
FEMA's transitional shelter program will pay for your hotel stay while you are displaced only after you register and qualify for TSA. Hotels and motels that provide rooms paid by FEMA vouchers require FEMA registration.
Visit a Disaster Recovery Center (DRC) to talk with someone in person for guidance or information.
The Red Cross offers shelters if you have to evacuate your home during a disaster.
The FCC Dial 211 for Essential Community Services program provides basic human needs resources, including food and clothing banks, shelters, rent assistance, and utility assistance.
Week 1: Medical Assistance.
Various organizations and agencies have a role in providing prescriptions and healthcare to disaster survivors in the aftermath of emergencies. These include the Department of Health and Human Services (HHS), Medical Reserve Corps (MRC), local public health departments, healthcare providers and hospitals, pharmaceutical companies and pharmacies, and non-governmental organizations (NGOs).
HHS / ASPR is responsible for public health and healthcare services. During disasters, agencies within HHS, such as the Centers for Disease Control and Prevention (CDC) and the Health Resources and Services Administration (HRSA), work to provide medical support and resources to affected communities.
MRC units are community-based volunteer organizations that assist in public health emergency responses. They can provide medical services, including prescription assistance and healthcare, to disaster survivors.
Local health departments often play a crucial role in disaster response by providing medical services and coordinating with healthcare providers to ensure access to prescriptions and healthcare for survivors.
Organizations like Direct Relief, Americares, and International Medical Corps specialize in providing medical assistance, including prescriptions, healthcare services, and medical supplies, during disasters.
Week 1: Disaster Unemployment Assistance (DUA).
The Disaster Unemployment Assistance (DUA) program offers temporary benefits to individuals who have lost their employment or self-employment directly due to a major disaster. This assistance is available to those who do not qualify for regular unemployment insurance (UI).
The eligibility for DUA is determined by the state UI agency, which first checks if individuals qualify for regular UI benefits. If they are eligible for regular UI benefits, they will receive those instead of DUA.
The U.S. Department of Labor oversees the DUA program and collaborates with the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. The administration of DUA is carried out by state UI agencies acting as representatives of the Federal government whenever a disaster declaration, including DUA, is issued for "individual assistance".
A "Major Disaster" encompasses any significant natural or man-made catastrophe, such as hurricanes, tornadoes, earthquakes, floods, or other incidents like explosions or natural gas leaks. It leads to a Presidential declaration of a disaster. Such a declaration is issued when it's established that governmental aid is necessary for communities and individuals who have been directly impacted by the disaster. Disaster Unemployment Assistance (DUA) becomes accessible when the declaration includes provisions for individual assistance, including DUA.
Upon the request of a state Governor or Tribal Governor/Chief, the President has the authority to declare a major disaster in the state. This declaration specifies the areas impacted by the disaster and may grant authorization for Disaster Unemployment Assistance (DUA). Public announcements are issued to inform the public of the availability of DUA.
One of the following conditions of unemployment must have occurred as a direct result of the disaster to qualify for DUA: the individual has had a week of unemployment following the date the major disaster began; the individual is unable to reach his/her place of employment; the individual was scheduled to start work and the job no longer exists or the individual was unable to reach the job; the individual became the breadwinner or major support because the head of the household died as a direct result of the disaster; or the individual cannot work because of an injury caused as a direct result of the disaster.
In order to be eligible for DUA, individuals who meet one of the qualifying conditions above must also meet all the following eligibility requirements: the individual is not eligible for regular UI; the individual is unemployed as a direct result of the disaster; the individual is able and available for work, unless injured as a direct result of the disaster; the individual filed an application for DUA within 30 days of the date of the public announcement of the availability of DUA; and the individual has not refused an offer of employment in a suitable position.
To file a claim, individuals who are unemployed as a direct result of the disaster should contact their State Unemployment Insurance agency. Applications for DUA must be filed within 30 days of the announcement of the availability of DUA in the state. Individuals must follow the instructions in the announcement and file for DUA based on the filing method used by their state UI agency (i.e., in-person, mail, telephone, or internet).
The duration of DUA benefits varies by state and is determined by the state UI agency. The individual must continue to file weekly or biweekly claims for DUA benefits according to the instructions given by the state agency where the DUA application is filed.
DUA benefits are generally paid for up to 26 weeks, beginning with the first week following the date the major disaster began, and ending with the 26th week following the date the major disaster is declared by the President ¹.
DUA is a temporary benefits program that provides assistance to individuals who have lost their employment or self-employment directly due to a major disaster and who do not qualify for regular unemployment insurance (UI).
The weekly benefit amount (WBA) will be based on the gross wages of the individual. If the individual is self-employed, the weekly benefit amount will be based on the net earnings (income) from self-employment. Generally, benefits are calculated using the same formula used for state UI benefits; however, if the individual qualifies for less than 50 percent of the state average UI WBA, the WBA will be increased to 50 percent of the state’s average WBA, with certain exceptions for part-time workers.
FEMA provides the funding for DUA benefit payments and the costs for states to administer the program. DUA payments are made by state UI agencies to eligible individuals unemployed as a direct result of the disaster.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) is a United States federal law designed to bring an orderly and systematic means of federal natural disaster assistance for state and local governments in carrying out their responsibilities to aid citizens.
Title 20, Chapter V, Part 625, Code of Federal Regulations (20 CFR Part 625) is a federal regulation that governs the administration of the Disaster Unemployment Assistance (DUA) program.
Week 1: Community Efforts.
A daily health and safety briefing is a meeting conducted by homeowners with all individuals present on their property prior to commencing any work. It's crucial to pinpoint specific areas where personal protective equipment (PPE) is required and either supply the necessary gear or instruct workers to bring their own.
A legally binding waiver is a document that absolves homeowners of any liability in case of accidents or injuries involving volunteer groups or individuals rendering assistance post-disaster.
A waiver of liability is a document that absolves homeowners of any liability in case of accidents or injuries involving volunteer groups or individuals rendering assistance post-disaster ¹.
A sign-in sheet is a document that records the names and other relevant information of individuals present on a property during disaster recovery. The categories may include first and last name, identification used, medical conditions and physical limitations, medical insurance type of coverage, and indemnity cause acknowledgment to hold harmless in the event of an accident and/or injury.
Liability coverage for incidents involving volunteers is a type of insurance that provides coverage for homeowners in case of accidents or injuries involving volunteer groups or individuals rendering assistance post-disaster. Generally, standard homeowners insurance policies should encompass liability coverage for incidents involving volunteers. However, if this isn't the case, consulting your insurance company will facilitate obtaining the appropriate coverage to safeguard against potential liability claims and legal proceedings.
If you're uncertain about your liability coverage, it's recommended to seek guidance from both your homeowners insurance provider and a legal professional. They can provide you with information on the appropriate coverage to safeguard against potential liability claims and legal proceedings.
For those without property insurance, the responsibility falls on them if a claim is filed. It's important not to overly dwell on this matter or reject volunteers. Nevertheless, opting for volunteer organizations with robust screening, training, and comprehensive information on indemnification waivers is the preferred course of action. This helps safeguard both the organization and those it aids ¹.
To locate volunteer groups and organizations, it's important to listen for local announcements and reach out to local faith-based groups for recommendations.
Not for Profit Organizations providing volunteers are organizations that offer volunteer services to homeowners in need of assistance. Unaffiliated individuals volunteering directly to you and your property needs are individuals who offer volunteer services directly to homeowners in need of assistance. In some cases, unaffiliated volunteers can offer more specialized assistance, but it is up to you to do your due diligence and vet the person that is volunteering as an unaffiliated volunteer.
Volunteer groups and organizations that provide disaster recovery assistance include Cleanup (including Debris Removal, Tarping, and Muck and Gut), Volunteer and Donations Messaging and Management (including spontaneous unaffiliated volunteers, and in-kind donated goods), Volunteer Reception Centers (VRCs), Multi-Agency Resource Centers (MARCs), Long Term Recovery Groups (LTRGs), Voluntary Organizations Active in Disasters (VOADs), and State Resource library, Disaster Relief - Emergency Management contact information.
Week 1: Managing Disaster Debt - Financial Guide.
Disaster debt refers to the additional financial obligations that a household takes on to recover from a major disaster.
In this case, the initial step involves your flood insurance paying out the full amount with a two-party check, with your home's first lien holder (mortgage) listed on the check. You'll endorse the check and pass it to your mortgage handler. Since they've already received a copy of the FEMA damage assessment, there's no need to rehash the estimated damages. The only discussion you should have is what will the lender allow you to do? Reconstruct or Repair or; To safeguard the investment, your mortgage handler uses $200,000 of your $250,000 flood insurance to pay off your mortgage without further consultation. This is referred to as a "Forced Mortgage Payoff".
A "Forced Mortgage Payoff" is when your mortgage handler uses a portion of your flood insurance to pay off your mortgage without further consultation with you the homeowner. It is to safeguard the investment for the lender.
If a household doesn't have sufficient funds for reconstruction or repair, although demolishing the home and obtaining a construction loan is an option, they won't qualify for any loan as long as the old structure remains in place and its collateral value is zero. If they choose not to secure a grant for home reconstruction, their disaster debt burden would now manifest as a private loan. This loan's terms would be contingent on their discretionary income and their land's market value since they no longer have a structure to use for collateral.
The collateral value of a structure is the value of the property that can be used as collateral for a loan. Typically 80% of the quick sale market value of the structures only.
Discretionary income refers to the amount of money a person has left after covering essential expenses like housing, utilities (includes internet), groceries, and transportation. It represents the funds that can be allocated for non-essential expenses, such as entertainment, dining out, hobbies, SBA disaster loans, retirement funds, and savings.
To calculate discretionary income, subtract total monthly essential expenses from total monthly income. The resulting figure is the amount available for discretionary spending and saving.
Understanding your discretionary income is pivotal for making well-informed financial choices regarding your recovery process. This knowledge enables you to allocate funds for crucial repairs and disaster-related expenses without resorting to additional debt, such as private or secured loans like an SBA disaster loan.
Taking on new loans should only be considered if you have at least 15% or more discretionary income after covering your regular expenses each month to include your new disaster loan payment. Additionally, caution should be exercised when considering an SBA loan offer, as it may use a simplistic method, like the "$50 in hand" approach, to determine your discretionary income. It's crucial to maintain a minimum of 15% discretionary income each month to avoid the risk of defaulting on any loans, particularly in times of crisis.
The "$50 in hand" approach is a simplistic method used by SBA to determine your discretionary income. It assumes that you have $50 in hand for every $1,000 of monthly income. However, this method may not accurately reflect your actual discretionary income.
Disaster debt burden refers to the additional financial obligations that a household takes on to recover from a major disaster.
You can calculate your disaster debt burden before a major event by reviewing your insurance coverage. Examples of yearly insurance coverage reviews include reviewing and adjusting the estimated expense for replacing your home, reviewing any disaster mitigation requirements from your local municipality and state, reviewing building codes established by the International Residential Code published by the International Code Council, Inc., and researching the cost per square foot for new construction of your home on the same footprint as your current home with mitigation and green building practices added into the costs.
Insurance companies do provide options like "Extended" or "Guaranteed Replacement Cost" coverage, but it's important to note that you'll need to specifically request this type of policy coverage.
The National Flood Insurance Program offers a maximum of $250,000.
The aggregate liability for additional flood insurance in excess of the limits specified in clause (i) of subparagraph (A) of paragraph (1) shall be made available, with respect to any single residential building designed for the occupancy of from 1 to 4 families, up to $250,000.
The HUD CDBG-DR grant program is a federal government program that provides grants to assist homeowners in filling the gap between covered and not covered items. This gap coverage is called unmet needs and can be paid for by SBA loans then later reimbursed to the homeowners in the form of HUD Grants depending on state representation.
Replacement costs refer to the cost of replacing an item with a similar one, while new construction costs refer to the cost of building a new structure. It's important to verify these costs with local contractors adjusting for current market influence of materials and labor.
Guaranteed replacement cost insurance is available from select providers and would have been the perfect policy to have between 2019 and 2021 when material costs skyrocketed. It covers the full cost of reconstruction in the event of a disaster.
Between October 2019 and December 2021, lumber prices dramatically increased by near 60%. Since then, lumber investment trading has dropped and lumber prices have returned to 2019 prices. Numerous homeowners undertaking new construction during this period experienced significant material cost hikes, ranging from 35% to 60%. During this period, labor costs within the industry remained stable, whereas contractors' overhead expenses and profit margins saw an increase.
It's crucial to ensure that your insurance policy covers the full cost of complete reconstruction in the event of a major disaster. Additionally, understanding the steps for disaster assistance at both federal and state levels can help minimize the extra debt incurred during post-disaster rebuilding. Please keep in mind that I can offer a general process, but it's important for you to adapt it to your specific needs.
The National Flood Insurance Program (NFIP) is a federal program that provides flood insurance to homeowners. In the event of a major disaster like a flood that results in substantial damage to a residential home, flood hazard mitigation may drive the cost of rebuilding beyond the property's market value. Replacement funding is covered by the National Flood Insurance Program (NFIP) with a cap of $250,000.
The HUD CDBG-DR grant program is a federal government program that provides grants to assist homeowners in filling the gap between covered and not covered items. This gap coverage is called unmet needs and can be paid for by SBA loans then later reimbursed to the homeowners in the form of HUD Grants depending on state representation.
Replacement costs refer to the cost of replacing an item with a similar one, while new construction costs refer to the cost of building a new structure. It's important to verify these costs with local contractors adjusting for current market influence of materials and labor.
Guaranteed replacement cost insurance is available from select providers and would have been the perfect policy to have between 2019 and 2021 when material costs skyrocketed. It covers the full cost of reconstruction in the event of a disaster.
Between October 2019 and December 2021, lumber prices dramatically increased by near 60%. Since then, lumber investment trading has dropped and lumber prices have returned to 2019 prices. Numerous homeowners undertaking new construction during this period experienced significant material cost hikes, ranging from 35% to 60%. During this period, labor costs within the industry remained stable, whereas contractors' overhead expenses and profit margins saw an increase.
It's crucial to ensure that your insurance policy covers the full cost of complete reconstruction in the event of a major disaster. Additionally, understanding the steps for disaster assistance at both federal and state levels can help minimize the extra debt incurred during post-disaster rebuilding. Please keep in mind that I can offer a general process, but it's important for you to adapt it to your specific needs.
Homeowners who need to bridge the gap between the NFIP maximum and the actual replacement cost have a few options:
Gather additional funds by using savings, retirement funds, private loans, borrowing from family.
Apply for federal financial assistance in the form of grants from state managed HUD CDBG-DR programs focused on long term disaster recovery.
Apply for a SBA Disaster Loan. Note: This may disqualify you from any HUD CDBG-DR grant program if you accept the loan. You can decline the SBA loan only if you do not sign and mail the loan acceptance.
The cost of constructing a new replacement home depends on various factors such as labor costs, material costs, mitigation elevation costs, demolition costs, etc. Here is an example of how to compute the anticipated expenses for constructing a new replacement home:
The cost per square foot for building a home is $118.
The cost of mitigation elevation in a flood zone is $32 per sqft to 6'.
The total economy grade build cost per square foot is $150.
Using 1,500 sqft as average sized home, the cost to build a new home is 1,500 * $150 = $225,000.
The cost for demolition is $18 per square foot of the structure. This cost is then added to the overall expense of the new construction. $150 + $18 = $168 per sq. ft.
Taking all factors into account, the final expenses amount to $252,000 for the new construction project, which includes mitigation measures for elevation.
Week 1: FEMA Assistance Follow-Up Tips.
Log in to your account at disasterassistance.gov and use your FEMA registration number to track your application.
Respond promptly to any requests for documentation or information to prevent delays in processing.
Be present and cooperative during physical inspections. For virtual inspections, use smart devices to showcase damaged areas.
Maintain copies of correspondence, applications, receipts, and relevant documents for potential appeals or further assistance.
If you disagree with an inspection or assistance decision, follow the instructions in the denial letter for the appeals process.
Virtual inspections utilize smart devices for assessing property damage remotely. However, outcomes may differ from physical inspections, often necessitating further actions.
The process duration varies, but patience and persistence are crucial. Contact FEMA's helpline or visit their website for guidance and updates.
Monitor your bank account for direct deposit payments or check your mailbox for paper checks. Report any discrepancies to FEMA.
Yes, you can update your information on disasterassistance.gov or notify FEMA of any changes to ensure you receive important updates.
If you have questions or concerns, contact FEMA's helpline or visit their website for assistance and information related to the disaster recovery process.
