Someone told me that they received a letter from FEMA requesting the $2000 to be returned because FEMA confirmed that my friend had home owner's insurance that provided reimbursement for temporary living expenses during evacuation! Has anyone else heard about this?

Personally experienced it, no. Heard that this is true and normal, yes. I think the "rule" is you can't be doubly compensated for the $2k - it's either FEMA or homeowners, but not both. I think there was a court case in FL about it...

Anyway... not my personal experience but this is what I've heard.

Not true....insurance does not affect the $2000..it is a GRANT from FEMA. The only requirement is that you live in the affected parish (and NOT get it twice...) Even if you spend it on something else they do not require repayment...if this person got a letter like this it is probably a scam...a lot of scams are going after the $2000...be careful

Dave - do you know why they ask about the homeowners or renters insurance and sometimes tell people they don't qualify because they have insurance? There are so many different stories out there.... and no "official" answer on the FEMA site, that I've found.

You'd think there would be, given all the questions....

There are standard questions from FEMA. When you apply with FEMA you are applying for pretty much all standard FEMA aid. There are things that you wont qualify for if you have enough insurance, but the Individual Assistance grant isnt one of them. Answer all their questions, and maybe you will qualify and maybe you wont for further aid....but either way you will be approved for the $2000. When I checked my application a few days after applying it said I was denied pending an inspection. Then the next line told me the $2000 had been deposited on such and such a day.....

After reading a bit I don't believe there is one answer to "do I have to pay it back". It appears it depends on the type of money you received, and if it was received to compensate you for something that was also insured. So... if you have $2000 in damages and insurance, and FEMA gave you $2000 and your homeowners gave you $2000 it looks like you'd have to pay it back. That is just my guess.... proably 100 ways it could go.

Unfortunately, you'll probably have to call FEMA to find out.

found this on the FEMA site http://www.fema.gov/rrr/dafaq.shtm#18

Insurance :
I have insurance and filed a claim with my insurance agent, but I don’t have a place to live. Is there any help for me?

FEMA cannot duplicate assistance from your insurance company. If you still have serious unmet needs after receiving your insurance settlement, FEMA may be able to provide assistance. If you are unable to locate a place to rent you, can visit a local Disaster Recovery Center (DRC) or call FEMA’s Helpline at 1-800-621-FEMA (3362) to get the list of rental resources in your area.

I have received a settlement from my insurance company and it is not enough to cover my losses. What should I do now?

FEMA recommends the following: Read over your settlement documents carefully and be sure you understand your policy. If you believe a mistake has been made, contact your insurance agent. If you are still not satisfied, your agent can tell you how to contest the settlement. Next, call FEMA at 1-800-621-FEMA. FEMA and other agencies may be able to help cover those losses that are uninsured and otherwise eligible.

Are insurance deductibles covered under FEMA’s programs?

FEMA does not cover insurance deductibles. If your insurance settlement does not meet you disaster related need you may be eligible for assistance from FEMA.

What documents does FEMA want from my insurance company?

If you apply for help from FEMA because your insurance does not cover all of your disaster related needs, you need to write a letter to FEMA explaining your situation and include a copy of a settlement or denial letter from your insurance company. FEMA cannot duplicate any insurance coverage.

Do I have to file a claim with my insurance company since I have to pay a deductible? Why can’t FEMA just help me?

FEMA cannot give you money for items that your insurance covers, (this would be considered a duplication of benefits) but we may be able to help with uncompensated losses or unmet needs not covered by your insurance company. If you have not already contacted your insurance agent to file a claim, please do this as soon as possible. If you do not file a claim with your insurance company FEMA help may be limited.

My insurance company told me it would be weeks before they come to see my damages. Can FEMA help?

If a decision on your insurance settlement has been delayed longer than 30 days from the time you filed the claim you may be eligible for an insurance advancement from FEMA. These funds are considered a loan and must be repaid to FEMA once you receive your settlement from your insurance company. Contact FEMA if your insurance settlement is delayed. FEMA will send you a Request for Advancement and Signature letter. You must complete and return this letter before FEMA can evaluate your request for assistance.

Does disaster help have to be repaid?

A grant from the Individual and Households Program does not have to be repaid. Loans from the Small Business Administration must be repaid.

I have a lot of damage but I received a letter from FEMA stating I am getting “$0”. How come?

Please read the entire letter and pp 7-9 of the “Applicant’s Guide”, which was mailed to you after you applied. This book explains the reasons for denial. The most common reasons for denial letters are because you have insurance to cover the loss or because your property is a secondary or vacation home. If you have received your insurance settlement and it does not cover all of your necessary expenses and serious needs, please contact FEMA at
1-800-621-FEMA (3362).

http://www.fema.gov/about/process/indiv_qualify.shtm

Is Disaster Help Available if I Have Insurance?
Possibly. If you have not already contacted your insurance agent to file a claim, please do this as soon as possible. Failure to file a claim with your insurance company may affect your eligibility for assistance. After filing a claim, if any of the following situations occur FEMA may be able to provide some assistance:

Your insurance settlement is delayed. Delayed means a decision on your insurance settlement has been delayed longer than 30-days from the time you filed the claim. If a decision on your insurance settlement has been delayed, you will need to write a letter to FEMA explaining the circumstance. You should include documentation from the insurance company proving that you filed the claim. If you filed your claim over the telephone, you should include the claim number, date when you applied, and the estimated time of how long it will take to receive your settlement. Any help awarded to you by FEMA would be considered an advance and must be repaid to FEMA once an insurance settlement is received.

Your insurance settlement is insufficient to meet your disaster-related needs. If you have received the maximum settlement from your insurance and still have an unmet disaster-related need, you will need to write a letter to FEMA indicating the unmet disaster-related need. You will also need to send in documentation from your insurance company for review.

You have exhausted the Additional Living Expenses (ALE) provided by your insurance company. If you have received the maximum settlement from your insurance for Additional Living Expenses (Loss of Use) and still need help with your disaster-related temporary housing need, write a letter to FEMA indicating why you continue to have a temporary housing need. You will also need to provide documentation to prove use of ALE from insurance, and a permanent housing plan.

You are unable to locate rental resources in your area. The FEMA Helpline has a list of rental resources in the disaster area. If no resources are available in your county, then the Helpline agent can provide you with resources in an adjacent county.
You have up to twelve (12) months from the date you registered with FEMA to submit your insurance information for review. By law, we cannot provide money to individuals or households for losses that are covered by insurance.

[QUOTE]Originally posted by Taiji:
Does disaster help have to be repaid?

A grant from the Individual and Households Program does not have to be repaid. Loans from the Small Business Administration must be repaid.


The aforementioned $2000 is a part of the grant from the Individual Assistance program...it does not have to be repaid...ever...the only fly in this ointment is their rule that if later you also qualify for, let's say, another $5000 in Individual Assistance for whatever reason, the $2000 you already received will come out of that.....$5000 would be the max you could receive because you cant get two grants. In essence they would take their $2000 back out of the $5000 and send you $3000...meaning you get a total of $5000. But that is the only "repayment" of any kind for this grant (altho I suspect if they found out you defrauded them you would have to repay it on your way to a federal penitentiary....hehe)

I wonder if some hurricane victims got money under a different program, or perhaps one where the insurance paid the damage (or even temp living quarters) after FEMA sent money, and then are receiving requests from FEMA money to be repaid. I'm sure a lot of people answered the qustionnaires with a few guesstimates, since a lot of documentation was lost in the storms. And, I'm sure there are scams out there. Sad.

There seems to be no one answer for any of it.... which is life, I guess.

One would assume if you were honest in your answers, and FEMA recorded it correctly, and they sent you money, you could keep it according to the terms it was given. I think one problem is people aren't sure of the terms or perhaps what program their money came from.

Just a thought...

All roads seem to lead back to CALLING FEMA or standing in line again. That is awful, I'm so sorry....!

i WAS UNDER THE UNDERSTANDING THAT IF YOUR INSURANCE HAD A TEMP HOUSING ALLOWANCE OR PAID FOR YOUR EXPENSES YOU HAD WHILE OUT OF YOUR HOME SUCH AS HOTELS AND MEALS THEN YOU DO NOT QUALIFY FOR THE $ 2000. yOUR INSURANCE CAN TELL YOU IF IT PAYS FOR THAT. mY INSURANCE PRINTED ME A PAPER TO STATE THEY DO NOT COVER SUCH EXPENSES.

You are correct, if your insurance will pay for temp housing, then you are not entitled to the FEMA $2000.00 nor if you did not evacuate you do not get the money. If you did not evacuate, they pretty much will not help. Now if you live in Jeff Davis,Cameron,or Cal. parishes, you are entiltled to FEMA help. if you live in any one of these Parishes, call your state rep. You are entitled to the money and help.They can not deny you. It was anounced on Channel 7 KPLCTV
it states "If you have already applied for expedited FEMA assistance and did not qualify, you can still call the local FEMA help line. The number is (337) 721 - 3850"

Residents Cautioned on Spending Assistance Funds
FEMA cautioned people receiving disaster assistance for hurricane losses to heed instructions that accompany assistance checks. Recipients are required to keep receipts for three years, and they must sign a declaration and a release certifying all funds will be spent on the expenses for which they are intended. If the recipient receives money from insurance policies to cover the same expenses, the FEMA disaster money must be returned. Random audits may be made to confirm funds were spent properly.