New Mexico Wildfires DR-4652 Frequently Asked Questions and Rumor Control

Fact:

There is no blanket waiver. Generally, by law, there is a 30-day waiting period from the date of purchase until flood insurance coverage takes effect with very few exceptions. There is an exception called the Post-Wildfire Exception, and it only applies in narrow situations on a case-by-case basis. This exception is relevant when a new policy (or additional coverage) is within the standard 30-day waiting period and a loss is experienced qualifying it for the Post-Wildfire exception and resulting in a 1-day waiting period.

In order to be potentially eligible:

• The insured property must be privately owned and experience damage caused by a flood that originated on federal land;
• Post-wildfire conditions on federal lands caused or worsened the flooding; and
• The policy holder purchased the new, additional or increased coverage either before the fire containment date or during the 60-calendar day period following the fire containment date.

It’s important to know that the Standard Flood Insurance Policy does not insure damage from a flood that began before a new policy’s waiting period (or coverage, if no waiting period) began, even if the flood did not damage the insured property until after the waiting period (or coverage) began. So, if you purchase flood insurance after a flood is already in progress, you won’t be able to be covered for a loss.

If you purchase flood insurance (or additional increased coverage), are in your waiting period, and experience a flood loss, ask your insurance agent or adjuster if you may be eligible for this 1-day, Post-Wildfire waiting period exception.

Fact:

This is not true. Residents of New Mexico affected by the ongoing wildfires can still apply for assistance from FEMA, even if you plan to take part in or are taking part in a class-action lawsuit.

Fact:

FEMA grants do not have to be paid back. FEMA will not seize any land or property in return for providing disaster assistance.

By law, FEMA cannot duplicate benefits provided through insurance. Many insurance policies include Additional Living Expenses (ALE) or Loss of Use (LOU) coverage, which provides money to cover lodging costs when you are unable to live in your home due to a disaster. If your insurance does not include ALE or LOU, or if the money provided by your insurance does not cover all your lodging expenses, you can submit your insurance documentation to FEMA to be considered for Lodging Expense Reimbursement.

FEMA may be able to provide Lodging Expense Reimbursement (LER)  for out-of-pocket lodging expenses, but only if these expenses are not covered through other means, such as insurance.

To be considered for LER, you must meet basic eligibility criteria for assistance and FEMA must verify that your home is unlivable, inaccessible, or affected by an extended disaster-caused utility outage. You must also submit verifiable documentation, such as receipts, of your lodging expenses.

Lodging Expenses Reimbursement requests are manually reviewed by processing staff. In larger scale disasters, it can take one to two months after receipts are submitted to receive reimbursement.

No. Eligible expenses may include the cost of the room and taxes charged by a hotel or other lodging provider. This does not include costs for food, phone calls, transportation or other miscellaneous expenses.

Fact:

It depends. When you receive a letter that states your application is “not approved” or “incomplete” you can check your status online or call the FEMA Helpline, 800-621-3362, for more information.

This letter may mean that more information is needed, or that your insurance claim needs to be settled before FEMA disaster assistance can be granted.

Fact:

Wrong. Every applicant is entitled to appeal. Below are the steps for appealing a decision:

FEMA will need your full name, address of pre-disaster residence, current phone number and address, and signature. The appeal must be postmarked within 60 days of the date the FEMA determination letter was received.

Date the appeal letter, include your nine-digit FEMA application number and the disaster code (DR-4652-NM). You can upload it to disasterassisance.com, mail or fax it to:

FEMA National Processing Service Center
P. O. Box 10055 Hyattsville, MD 20782-7055
Fax: 800-827-8112; Attention: FEMA

Fact:

Applicants who apply for FEMA disaster assistance and are referred to the SBA and do not complete a U.S. Small Business Administration disaster loan application could be missing a good opportunity. The SBA offers affordable financial help to homeowners and renters. You don't need to own a business to request assistance.

An SBA low-interest disaster loan may cover some or all of the difference between your recovery costs, the insurance settlement, and the FEMA grant amount.

• SBA offers low-interest disaster loans for homeowners up to the $200,000 statutory maximum to repair or replace your primary residence. The loans are customized to your personal financial circumstances. On a case-by-case basis, the SBA may be able to assist with refinancing your current mortgage(s).
• SBA can also help renters and homeowners replace household contents and vehicles, referred to as personal property. You may be able to borrow up to the $40,000 statutory maximum to repair or replace clothing, furniture, cars, or appliances that were damaged or destroyed in the disaster.

You can contact an SBA customer service representative via email at disastercustomerservice@sba.govor by phone at 800-659-2955. SBA will answer specific questions about how a disaster loan may help each survivor with their disaster recovery and will provide one-on-one assistance in completing applications for these loans. You can apply online at https://disasterloanassistance.sba.gov.