Dec 17, 2024
Susan Lewis of Charlotte, North Carolina, got lucky when Hurricane Helene hit in September. While other state residents faced devastating flooding, Lewis says she only suffered a cracked window — a $200 repair job. Still, the 74-year-old lives on Social Security, so when she heard FEMA was offering assistance after Helene, she applied for funding to fix it.
Her claim was denied by the federal agency, she told WSOC-TV Channel 9, and she was instructed to take the matter up with her insurer. But due to her $1,000 home insurance deductible, Lewis says she paid for the $200 repair out of pocket.
Advertisement
Despite refusing to pay to fix her window, Lewis says FEMA offered to put her and up to three other people in a hotel for a month — an arrangement that would normally cost up to thousands of dollars.
“I kept re-reading it thinking, ‘What am I missing here?’” she told the local broadcaster in a story published Dec. 4. “This makes no sense.”
Lewis didn’t take the agency up on its hotel offer, but was left bewildered by the situation. Here’s the reasoning behind what happened.
Benefits rules
Let’s start by addressing the $200 repair claim. By law, FEMA has previously said it can’t give financial assistance for a disaster-driven need if it’s available from another source, including insurance. This is to protect against the double-dipping of benefits.
However, in some cases, FEMA has also said it can help pay for costs insurance doesn’t cover — including if damages don’t exceed the policy deductible. But, you need a denial letter from the insurance company stating this as the reason for being denied.
It’s unclear if Lewis went through the claims process with her insurer before deciding to pay for the window repair herself, though she was seemingly unaware there may have been a path to compensation. She claims to have called FEMA following their denial of funds but says staff were unhelpful.
“It makes me so sad to think maybe they’re denying people with legitimate claims,” she said. “It just breaks my heart how mismanaged this is.”
Advertisement
As for the offer of a hotel stay, Channel 9 says a FEMA spokesperson informed them money for rooms was approved for a majority of registered survivors due to the hurricane's impact on infrastructure, including bridges, roads and utilities.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Recovering from a disaster
The destruction of Hurricane Helene will cost North Carolina an estimated $59.6 billion, according to a Dec. 13 state report. While Lewis’s $200 window repair was manageable, many homeowners face significant losses that may not be covered by insurance. Here’s what you should do if your home sustains damage after a natural disaster:
Start by documenting the damage. Before you start cleaning up, take clear photos and videos of all the damage to your property, including flooding, water damage and personal belongings. If you haven't experienced a natural disaster yet, it may help to record images now for comparison. This can be critical when filing insurance claims or applying for disaster assistance from FEMA.
Notify your insurance company as soon as possible, even if you think damages might not meet the deductible, and review your policy. Remember, FEMA may only pay for damage not covered by your insurance provider, so this is critical to accessing federal assistance.
If your area has been declared a disaster zone, FEMA may offer additional support. Assistance programs can vary but may include temporary housing, like Lewis was offered. Apply through disasterassistance.gov or contact FEMA directly for more information. Some states and local governments may provide additional aid, such as food, access to shelter or grants or loans for repairs.
Finally, be prepared for scams after a disaster. Be wary of contractors who show up uninvited or callers claiming to be from your insurance company who pressure you to make decisions quickly. Never share your bank account info, Social Security number or other sensitive information with a company or organization you don't recognize. Recovering from a disaster is stressful enough without falling victim to a scam. Take your time and be wary to prevent additional hardships.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
