Under the updated policy, FEMA cannot fund any new construction in a V-Zone. This restriction includes the replacement of structures and/or facilities that have been totally destroyed by a disaster. A structure or facility is considered to be totally destroyed when the repair costs are equal to, or exceed, 90 percent of the cost to replace that facility or structure. Even if the value of the damages to a structure exceeds this “90% Rule”, FEMA can no longer fund the new construction in a V-Zone.

If the repair costs fall between 50 and 90 percent of replacement costs, FEMA may still fund substantial improvements to a damaged V-Zone property. These funds can be applied to repairs, improvements, and reconstruction of the structure/facility. Reconstruction may include purposeful demolition and rebuilding in the same footprint, as long as it does not exceed 110% of the original size of the building. (Under FEMA’s Public Assistance Program, reconstruction is considered as a form of repair project and not as new construction.)

This summary of the update to FEMA’s V-Zone construction policy is not all-inclusive and is only intended as an overview. For a more thorough understanding of how this policy updates affects you, contact one of our Disaster Recovery Consultants at Adjusters International.

Do you think of Dorothy and Toto and being whisked away to the Land of Oz?  If your home has been damaged by a tornado, chances are that you relate to the confusion and feelings of helplessness that Dorothy experiences when she realizes that she has landed in a completely different world.

Many parallels can be drawn between following the Yellow Brick Road and navigating your tornado insurance claim. Along the way you will be faced with many obstacles that you have to overcome:  be they sleep inducing poppy fields or the painstaking categorization of your losses.  While Dorothy needs to prove herself to the Wizard by defeating the Wicked Witch, you will need to prove your claim to the insurance company by valuing, documenting and substantiating every detail of your loss.

As Dorothy relied on the Tin Man and the Scarecrow to help her along the way, you will have to create your own group of trusted advisors to ensure that you follow all the steps to a full recovery.  If you enlist the help of a public adjuster or a disaster recovery consultant, you won’t be alone on your tornado-induced journey.  These specialists will guide you down the path to a full recovery and help you to get the most out of your tornado damage claim. Find out how the experts at Adjusters International can help you with your tornado damage claim.

The end of the road for Dorothy is the Emerald City and the Wizard of Oz that will help her to get home. At the end of the road for you is the insurance settlement that will help you rebuild your home.  Just like Dorothy, you also deserve to be able to go home again, because after all “There is no place like home”.

While you are waiting for the adjuster to arrive, you can start recording the level of damage to your property and your belongings.  Start by taking photographs of all the damaged property, including structural damage, damaged possessions, and any remaining water. Separate out the damaged items to take a full inventory including the details of each item such as the date purchased and value.  If local officials require the disposal of damaged items before your adjuster arrives, make sure to keep evidence from the damaged items (e.g. cut swatches from chairs, carpet, etc.) to provide your adjuster.

Once the adjuster arrives, they will walk through your property to evaluate the level of damage. It is important to accompany the adjuster in their walk-through so that you can clarify the scope of the loss, and to provide additional details regarding the value of the damaged property.

The National Flood Insurance Program requires that the Proof of Loss form be filed within 60 days of the flood.  This 60-day time period is non-negotiable, and if the Proof of Loss is not submitted (or is missing any required information) your claim will be denied.   The Proof of Loss form is a sworn statement that you agree with the adjuster’s valuation of the damage, and that your claim is truthful and accurate.

If you do not agree with the adjuster’s valuation, you have a limited amount of time to appeal their decision before the claim window closes. Once an adjuster has submitted his decision, they will rarely amend their report; therefore consider hiring a public adjuster to assist with your appeal. Public adjusters have special training and expertise in appraising, preparing and negotiating flood damage insurance claims. They work solely for the policyholder – not the insurance company.

For a more detailed overview on recovering from Flood Damage, read the Adjusting Today issue on “Flood: Understanding and Recovering from One of Nature’s Worst Disasters“.

Even if you don’t live in a designated high-risk area, your property may be at risk. Do you know if you live in a community that participates in the NFIP and if you are eligible to purchase flood insurance through this Program? The One-Step Flood Risk Profile on Floodsmart.gov determines your flood risk based on your property’s location and estimates your premium based on your risk profile.

In moderate-to-low risk areas, the risk of flooding is reduced, although it remains a possibility. In these areas flood insurance is not required (as it is in the high-risk areas), but it is still strongly recommended for all property owners and renters. In fact, 25% of flood insurance claims come from these moderate-to-low risk areas.

Most homeowners in these low-to-moderate risk areas qualify for a Preferred Risk Policy at a much lower rate than the Standard Rated Policy. A Preferred Risk Policy offers two types of coverage: ‘Building and Contents’ or ‘Contents Only’. The Preferred Risk Policy offers multiple tiers of coverage based on the value of your property and how much coverage you require.

Before the flood waters rise, make sure you are covered!

For more on flood insurance and the National Flood Insurance Program, read the Adjusting Today issue on “Flood: Understanding and Recovering from One of Nature’s Worst Disasters“.

On 25 March 2009, FEMA’s update to the Disaster Assistance Policy 9524.4 regarding the 50 Percent Rule went into effect. This policy clarifies the application of 44 CFR §206.226(f) of whether a disaster-damaged facility is eligible for either repair or replacement under the provisions of the FEMA Public Assistance Program.

FEMA has outlined four conditions that define the eligible costs determinations.

(Chart courtesy of FEMA: http://www.fema.gov/government/grant/pa/9524_4.shtm)

There are two important factors to note in regards to this update:

1. FEMA staff creates the 50% repair versus replacement calculations. Therefore, it is imperative to review their work and check their assumptions and accuracy against real world costs for both repair and replacement.
2. FEMA often uses R.S. Means’ Construction Cost Estimator to determine which of the above conditions is met in regards to the 50 Percent Rule. This guide uses standard construction costs based on facility models to provide repair/replacement cost estimates for the damaged facility.  It is important to review the cost data to ensure that the facility model chosen should be the same form, function, and size as the damaged one (i.e., if the facility is a damaged library, the R.S. Means model for replacement should be a library, not a department store).

This summary of the update to Disaster Assistance Policy 9524.4 is not all-inclusive, and is only intended as an overview. If you are interested in further reading on the topic check out the Disaster Recovery Today issue entitled “Rebuilding under the FEMA Public Assistance Program – Repair? Replace? Relocate?“. This article examines how the FEMA Public Assistance Program affects the decision to repair, replace or relocate a damaged facility.

For a more thorough understanding of how this policy affects your FEMA claim, contact one of the Disaster Recovery Consultants at Adjusters International.

By Jeff Shaw

The latest issue of Disaster Recovery Today “Floodplain Management: Sound Techniques to Improve Your Recovery” discusses floodplain management and its impact on FEMA reimbursements.  Written by industry expert Jeff Shaw, this article takes an in-depth look at flood damage and explores the applicant’s ability to recover from this devastating peril.

Applying his extensive experience as a disaster recovery consultant, the author breaks down the concept of floodplain management into easily understood terms and helps clarify its interrelationship with the FEMA Public Assistance program. Mr. Shaw shares his insights about developing floodplain ordinances and procedures, addresses the issue of which eligible repair and replacement costs are paid for and by whom, defines applicable terms related to improvements, damage and market value, and discusses the consequences for failure to comply with floodplain management program requirements.

Read the full issue of Floodplain Management: Sound Techniques to Improve Your Recovery.

By Jeff Shaw

So far in Disaster Recovery Today, the series has described the FEMA grant cycle, the roles of the players and stakeholders involved, and how they interact and work together. Key to the entire grant cycle is documentation and accurate record-keeping. An organized, well-documented grant management strategy pays off during the final review of the project work during closeout and audit, and helps ensure that grant funding remains intact.

Since the date of the federal disaster declaration is often months, or even years, prior to a final review, an organization needs to take the necessary steps to prepare for the final review and to meet the expectations of project closeout teams.

Read the full issue of Completion, Inspection and Audit.

In the preceding six issues of Disaster Recovery Today, we have discussed management approaches, determining and categorizing losses, determining eligibility, and developing recovery plans and funding approaches. It is now time to put the pieces together.

In this issue, “Implementing the Plan,” brings us to the next level of grant development. This edition willintroduce the applicant to key contacts from the state and FEMA management teams and their areas of responsibility, and a discussion of recommended protocol to follow throughout the course of the working relationship with these management teams. Additionally, we focus on the detailed mechanics involved in grant development and receipt of funds, including an in-depth discussion of the

Read the entire issue on Implementing the Recovery Plan.

A four-step evaluation process to set the course of project funding

By Jeff Shaw

We have reached the critical middle ground in Disaster Recovery Today’s presentation of guidelines for effective management of the FEMA grants process. All the care and accuracy necessary to measure, document, and represent the project plan—which were covered in previous issues—will become a quantitative road map for the final stages of the recovery process. We are now ready to develop the funding approach.

Read the entire issue of Develop a Funding Aprroach.

By Jeff Shaw

Knowing your program and funding options is vital to a successful recovery

When it comes to developing a rebuilding plan an applicant has several options: you can replace the original facility, improve upon it, or direct the money toward another project.

“Under the FEMA Public Assistance Program, additional funding is available to bring public facilities up to code.”

“Alternate Project funds may also be used for hazard mitigation projects, including construction of physical facilities”

Read the entire Develop a Rebuilding Plan issue.