Week 2: Frequently Asked Questions (FAQ)

What should I focus on during Week 2 of disaster recovery planning?

File appeals, catalog losses, recalculate your financial status, determine your financial needs and reassess insurance coverage.

How do I determine my discretionary income during the recovery process?

Discretionary income refers to the amount of an individual's or household's income available for spending, saving, or investing after essential expenses, such as taxes and basic living costs, have been deducted. It represents the money that can be allocated to non-essential goods and services, luxury items, entertainment, or savings.
This is what you should use to determine if you can afford the additional debt burden of any type of type of Disaster Recovery Loan such as the SBA Disaster Loan.

When can I halt the fund gathering process for FEMA, insurance, and savings?

Once you've gathered sufficient funds for household recovery, you can proceed to repair or reconstruct.
Never start a project without it being fully funded. It's best to wait and apply for other assistance.

What is the debt burden level?

The debt burden level is the percentage of your discretionary income that goes towards paying off debts. It is evaluated during the disaster recovery process to determine your eligibility for grants and other forms of assistance.
Your disaster recovery additional debt burden should be no more than 50% of your total discretionary income. Unless the debt will be forgiven or is a very short term you do not want your household having zero dollars each month. You would not be able to cover your insurance deductables if that were the case.

What is the Average Median Income (AMI)?

The Average Median Income (AMI) is the median income for a particular area or region. It is used to determine your eligibility for grants and other forms of assistance. Your tax returns Adjusted Gross Income (AGI) is used to calculate your individual AMI. If you are in a household with more than one income then you would total the income to determine your AMI. You can find your specific area and it's AMI tables by using the HUD AMI pages here.

What if my damages exceed FEMA's maximum award of $41,000?

Continue seeking funding for repairs beyond FEMA's cap, considering all available options.

What should I do before moving forward in the recovery process?

Secure the maximum grant from FEMA, appeal initial assistance offers, and address any outstanding appeals.

How can I ease my disaster debt burden during the second week after the disaster?

Explore options like filing appeals, seeking legal advice, and engaging with local and state representatives.

What are the possible responses from FEMA after reviewing my application?

Approval, denial, or partial approval, depending on eligibility criteria and the disaster's impact.

Why might an applicant be denied FEMA assistance?

Incomplete applications, inaccuracies, or underestimation of damage can lead to denials.

What steps can I take to improve my chances of FEMA assistance approval?

Provide accurate information, document all damage, estimate costs realistically, submit required documentation, and review and verify the application.

What is FEMA's primary focus in providing assistance?

FEMA primarily focuses on temporary shelter assistance rather than extensive home repair assistance.

What is the appeal process for FEMA?

The FEMA appeal process involves filing an appeal within 60 days of receiving a decision letter from FEMA. You must provide additional documentation to support your appeal. FEMA will review your appeal and make a decision within 90 days. You will have one additional attempt at an appeal regarding the decision FEMA sent to you. You MUST provide additional documentation that can challenge the negative decision from the initial appeal. After this second attempt, you can appeal one more time, but only if policies or procedures were not followed by FEMA. The entire appeals process can take more than 12 months in some cases. It is essential to retain all copies of documents, including FEMA-related paperwork, in case their database is purged before your appeal is finalized.

What is the strategic appeal process?

The strategic appeal process involves understanding FEMA’s policy language and aligning your documentation with that language. You should also be aware of the specific categories for which you can appeal, such as dental, home repair, insurance, medical, and more.