Water Damage Aid a thorny jungle even with Insurance and Government Help
Only after a catastrophe when the water recedes, the mess comes into focus and its extent is assessed that most people begin to wonder how they're going to restore their lives. Next, it's a tangle of acronyms, programs and fine print. FEMA, the SBA, rider policies, individual aid and hazard mitigation are just a few of the phrases ordinary heard after a disaster. "Recovery can be a confusing road," admits Art Alejandre, public information officer for the Federal Emergency Management Agency. "There are a lot of variables for each individual case." Understanding the types of disaster declarations and aid programs is an important first step, Alejandre said. "If you have insurance, that's always the first thing," he said. "That's always the primary avenue of compensation for damage." Claim Game Many homeowners make the mistake of assuming their homeowner's insurance policy covers water damage that results from snowmelt, surface water and other sources, said Debbie Garrison, senior underwriter with Renner and Co. Insurance. "People don't generally think of anything except a rising lake or stream as a flood, but that's just not true in homeowner's insurance. If it's caused by any accumulation of water, that's considered flooding, and it's exempted from almost all homeowner's policies," Garrison said. "A lot of people don't realize that until they try to file a claim." Only about 1 percent of homeowners outside designated floodplains purchase flood insurance, she said. Home or business owners in flood-prone areas are usually required to purchase flood insurance before they can get a mortgage loan, Garrison said. Most flood insurance policies cap payouts at $250,000. Anyone who wants additional coverage has to purchase a 'rider policy,' or supplemental policy that covers more damage, at additional cost, she said. Disaster Declarations A flood, tornado or other event can result in a disaster being declared at the local, state or federal level. Generally, those declarations start locally and climb the chain to the federal level, said John Gibson, Washington County administrator and part-time FEMA consultant. "When we get information at the local level that we've got a major problem, we declare a disaster, then kick it up to the state, where it's the governor's call. He can ask the president to do the same thing," Gibson said. Each declaration opens up more avenues of aid, although some aid isn't available immediately, Alejandre said. There are two types of assistance the federal government can decide to offer, he said. Public assistance provides grants to state and municipal governments to rebuild roads, bridges and other infrastructure, while individual assistance opens up grants or loans for housing repair, business recovery and other help for residents affected by the disaster. FEMA did not technically declare a new disaster after Wednesday night's rain, because the flooding is considered a continuation of the ongoing disaster that was declared after the first round of heavy rains last month, Alejandre said. People, businesses and governments who applied for help after the March storms can update their information, he said. "When we offer individual assistance, it's for things that have changed a way of life, like rental funds for someone whose house in uninhabitable," he said. As of Friday, Benton and Madison counties had been approved for both government and individual assistance, while Washington and Carroll counties have only been approved for public assistance. That's likely to change early next week, both Alejandre and Gibson said. FEMA pays 75 percent of damages to local governments once they qualify for help, Alejandre said. State and local governments split the remaining costs. Helping Hands If a creek on John the Farmer's place floods his house with water, kills the hay crop in his fields and destroys his tractor, he can look several different directions for help. Assuming John has flood insurance, the insurance company will cover the cost of fixing his house. If not, he can apply for FEMA assistance to rebuild. If it had been a tornado instead of a flood, his homeowner's insurance would have automatically been the first source of rebuilding funds. If his insurance company doesn't cover the cost of renting a place to live while the house is being fixed, John might also qualify for FEMA funding to cover his rent. With no hay to feed the cows that John depends on for a livelihood, he can try for a low-interest loan from the federal Small Business Agency to purchase more hay. If the Small Business Agency decides the ruined tractor isn't a business-related expense, the Farm Service Agency might be able to help. Depending on the level of Congressional funding, the Farm Service Agency could approve grants or loans to replace his tractor or help remove downed trees from the fields. "What we have to offer always depends on what Congress authorizes in a given situation," said Ted Collins, executive director of the Northwest Arkansas unit of the agency. "It's sort of wait-and-see right now, because the data is still coming in, and we don't know what action Congress will take." Applying for assistance is a one-stop shop, Alejandre said. "If you come in to apply for help, the FEMA team can walk you through the different programs and possibilities," Alejandre said. "They can walk you through the SBA, FSA and other applications." Generally, an assessment team is dispatched to check a claim like John's farm. Local, state and federal officials tally up damage and determine what programs might help restore John's farm, Alejandre said. "There are no guarantees in this," Collins said. "We can help you recover from a disaster, but we can't make it look like it never happened." Similar teams look at roads, bridges and other structures to determine how much FEMA will pay governments to fix those problems. Awaiting Relief Disaster recovery centers, where individuals like John can apply for assistance, should open in Benton and Madison counties early next week, Alejandre said. If Washington and Carroll counties are approved for individual assistance, centers will also open in those areas soon, he said. Once people have applied for help, they may be forced to wait a while, Gibson said. "The emergency response folks are flooded right now," Gibson said. "There are problems all over the state, and they're spread pretty thin. Remember, all the water that's leaving here is running into the White River and the Arkansas River, and it's flooding out the other side of the state as we speak." Response teams are also working to divide disasters in central Arkansas, where tornados hit the Atkins area in February and around Little Rock last weekend, he said. So remember that your insurance policy may be inadequate. You may want to explore a rider policy. Search out all government programs from loans to grants .And that the person to rely on is your self. Take a deep breath and begin somewhere.
