Why FEMA May Not Help You After an Earthquake

Posted on: November 4, 2014 | By: Michael T. | earthquakes, fema, property damage

Earthquake damage Novato

Why FEMA May Not Help You After an Earthquake

Now that the Napa Valley earthquake on Aug. 24 has been declared a federal disaster, Novato residents are wondering if the Federal Emergency Management Agency (FEMA) will help them recover their losses. With only six percent of property investors covered by earthquake insurance, most people are facing stressful financial circumstances.

fema-earthquake-damage-novatoAs with all government agencies, FEMA has an allocated budget to work with. Total earthquake damage figures have been estimated at $1 billion, including insured and uninsured private and public properties, as well as economic losses sustained by business owners. With national disaster management agencies currently in debt, FEMA is unable to provide aid to everyone, and their primary focus is on public infrastructure. Those with earthquake insurance in Novato are relieved to avoid such unpredictability. Call Allied Restoration Company on 415-529-5637 to find out how to save money on hazard insurance.

According to the California Earthquake Authority, it is unwise to rely on government aid. If you do actually qualify for a payout, be prepared for a lengthy wait, with no guarantee of receiving anything. In addition, whatever monies you do acquire are considered a loan, which must be paid back, and the amount will be nowhere near enough to replace what you have lost.

FEMA states that their “Individuals and Housings Program” falls into two categories: “Housing Needs” and “Other Than Housing Needs”, which is available to uninsured individuals and small business owners. However, actually qualifying for aid under this initiative is not guaranteed. So why would FEMA deny your request for financial assistance?

  • You have another place to stay, such as unoccupied rental property
  • The damaged property is not your primary residence, such as a vacation home
  • You returned to your residence directly after the earthquake, and expenses were only accrued as a temporary precaution
  • Your insurance provider’s assistance was refused
  • You only suffered losses to your business, or other items that the program does not cover
  • Your home is situated in a risky area for floods, and the location does not fall under the National Flood Insurance Program. While you may be eligible for rental assistance and coverage for items not included in flood insurance policies, FEMA will not cover any losses caused by floods

While earthquake insurance is considered expensive, many homeowners are now reconsidering their lack of coverage in the face of dire monetary crisis. Now that disaster has struck, and will again in the near future, people are investigating the advantages of paying for a policy that will prevent financial ruin from natural forces. To find out how to strengthen the structure of your building, and minimize earthquake damage in Novato, call Allied Restoration Company today on 415-529-5637.