Beyond the Disaster: Successfully Presenting a Loss for Both Insurance and FEMA Reimbursement

Natural disasters can be catastrophic for public organizations, leaving them with significant financial losses and damage to infrastructure and property. While available insurance coverage and FEMA funding can help mitigate the financial burden for such organizations, successfully claiming these benefits across all areas of potential recovery requires a strategic and thorough approach.

To start the process, organizations should prioritize active leadership to shepherd the collection of all documentation associated with the loss. The first step in documenting a loss is to use technology to capture the damage comprehensively for evidentiary purposes. This includes using video, photos, and drones footage to capture all damages caused by the disaster. This documentation serves as critical evidence to support the claim and can be critical in overcoming disputes on the full impacts of the event.

Next, organizations need to assess the predicted full extent of the loss by calculating a Rough Order of Magnitude (“ROM”). After a ROM is created, the next step is to document all expenses associated with the loss, including direct and indirect costs like time element related delays and business interruption. All receipts, invoices, and other relevant documentation should be organized in a clear and concise manner and provided to the insurance adjuster or FEMA claims handlers.

The process of documenting the loss must also include an analysis how each particular loss cost fits within insurance and FEMA funding in real-time.

• To decide the extent of the insurance coverage for the loss, it is vital to review the insurance policy with your insurance broker and other experts to understand any applicable sublimits. The process of assorting the loss costs to the available limits and sublimits in an insurance policy requires a strategic analysis in order to position the organization for a maximum recovery.

• All other available sources of funding, including FEMA, grants, loans, or tax incentives should be reviewed in detail for applicability. When sending a claim to FEMA through the appropriate State channels, organizations should provide a comprehensive submission with all the necessary documentation to support the claim and clarify what is covered by insurance for each line item.

Hiring a claim preparation expert with FEMA capabilities can also help navigate the submission process, ensuring that organizations submit their claims accurately and efficiently. Organizations should watch the progress of the claim and follow up with the insurer and FEMA as often as needed to keep the process moving. It is crucial to recognize that the process of evaluating large losses and submitting claims can take time, so organizations should exercise patience and persistence.

By applying a comprehensive and strategic approach, these organizations can position themselves for full reimbursement potential and reduce the financial burden caused by the loss. Prioritizing active leadership, accurate documentation, and a holistic evaluation of all costs associated with the loss is critical to successfully claiming insurance and FEMA reimbursements for large losses.

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