Flood Insurance and FEMA Aid: What You Need to Know

Following the recent heavy rains and flooding that drenched the Niles-Morton Grove area during late April and early May, FEMA has announced that federal disaster assistance has been made available to residents to help aid in recovery efforts. According to the City of Niles, 668 homes had already filed flood surveys by the end of April. A majority of those homes suffered damage due to the sewer backup that resulted from the excessive rains.

If your home or property was damaged by the recent weather, here’s a quick guide to claiming your flood insurance (if you have it), and taking advantage of the assistance FEMA is now offering.

Filing a Flood Insurance Claim

If you have flood insurance, filing a claim can be a stressful and difficult process. It is important to take the right steps to make sure you get the most out of your settlement.

The first step is to take as many pictures of any structural damage as possible. The more hard evidence of damage you are able to show to the insurance company, the better. After you’ve gathered your photographic evidence, you should contact your insurance agent so they can file the proper paperwork and assign you an adjuster.

You will then need to write everything down that was damaged with as much detail as possible. Try to include the brand, model, and price when cataloging your losses, as it will make the process much easier.

Next, remove your undamaged belongings and put them in a safe place so they don’t also become damaged during cleanup. Once you have a list of what was damaged along with a rough price for each item, share this information with your adjuster. Stand firm on the amount you feel you need, because insurance companies will generally negotiate the payout they give. Make it clear to your adjuster that this is the amount you want and expect to receive.

It is also extremely important to note that you must submit a Proof of Loss form to your insurance company with 60 days, and follow up regularly to maintain the lines of contact with your insurance agent so they can keep you informed as to  when you can expect to receive your settlement.

For more information about flood insurance, including purchasing a policy for the future and filing claims, visit insurancetown.com.

FEMA Disaster Aid

The federal declaration is important for residents of the Niles-Morton Grove area because it means you can file a claim for assistance from the Federal Emergency Management Agency.

For those who don’t know, FEMA Assistance is either financial or direct assistance to citizens who live in a federally declared disaster area. It is offered to residents whose property has either been damaged or destroyed, and their losses are not covered by existing insurance. Additional resources like temporary housing, housing repair, and housing replacement are also available. (You may apply for aid to help your construction of a new house but this is only allowed in area where no temporary FEMA housing is available).

Additional expenses that FEMA aid can cover include medical, dental, funeral, burial, clothing, household items, tools required for work, educational materials, fuels for heat, cleaning items, vehicle repairs, moving, and storage. Any other necessary expenses must be approved by FEMA in order to receive aid for them. FEMA will also offer free legal assistance to those who require it for any legal issues related to the disaster.

However, if you do have insurance you may still be able to apply for FEMA assistance under certain circumstances. For instance, if your insurance settlement is delayed for over 30 days you are eligible for aid from FEMA, but this aid is considered an advance and must be repaid once you receive your insurance settlement.

If your insurance settlement doesn’t cover all of your losses, you may also apply for FEMA assistance to cover the difference. In addition, if you have exhausted the Additional Living Expenses from your insurance, you can file a claim with FEMA. It is important to note, however, that you must have the proper paperwork to prove that your claim is delayed, that your losses weren’t covered, or you have run out of Additional Living Expenses. Without evidence to prove this, your claim will be denied.

No matter if you are insured or not you may deduct a casualty loss from your federal income tax return for either this or the next year. However, the loss must exceed 10% of the adjusted gross income for the tax year by at least $100. Also, anyone in a federally declared disaster area can expedite tax refunds from the IRS.

FEMA agents will be on the ground assessing and processing any claims filed by the residents in the areas affected. FEMA has opened Disaster Recovery Centers in LaSalle, DuPage and Grudny counties, and may open more in the Niles-Morton Grove area, so it is important to keep checking this status at http://www.fema.gov/disaster/4116. These centers are a great resource because they have representatives from FEMA on hand to help you file your paperwork. The Small Business Administration also offers low interest loans to people who live in a federally declared disaster area, and will also have representatives at these recovery centers.

To register online for FEMA disaster assistance, visit http://www.disasterassistance.gov/. Additional details about FEMA and the recovery efforts currently underway, visit http://www.fema.gov/.