Page 18 - The Long Road Home

FUNDING THE RECOVERY
Photo: Ray Fisk, Down the Shore Publishing
Survey Results
For families and communities, survey results show that the experience on the ground of the roll-out of these programs was jumbled, confusing, and difficult to navigate.
One of the challenges many homeowners faced immediately after Sandy was a result of flood damage. Overall, 98 percent of respondents reported damage caused by flood waters. However, only 78 percent of respondents had flood insurance policies. Those with only homeowners insurance policies, which typically exclude damage due to flooding, had little recourse.
But even those who had flood insurance policies were often significantly underpaid by their carriers. Forty-eight percent of respondents reported damage of $150,000 or more, but only seven
percent received amounts that fell into this range. Two-thirds of homeowners indicated that they received $75,000 or less from their flood insurance company, but less than one-third stated their damages were in this range.
As a result of appeals, litigation, or the FEMA claims review process, half of homeowners claimed that they received an additional settlement from their carriers. However, many of those homeowners indicated that this additional award fell short of what they needed to rebuild.
With either insufficient flood insurance payouts or none at all, homeowners were forced to look elsewhere for funds to repair their homes. Eighty-one percent of these survey respondents applied for assistance through the RREM or LMI programs. Of those who did, five percent were administratively withdrawn
from the program, another five percent voluntarily withdrew, and eight percent were denied. Those in the RREM or LMI programs also risked having to pay grant money back if they were deemed to have received a “duplication of benefit.” Only 20 percent of respondents in the RREM program reported that their project is complete.
Whether homeowners are in the RREM or LMI programs or not, most have had to investigate other sources of funding. Seventy- seven percent reported that they needed to use other savings, take out an SBA loan, incur credit card debt, borrow from retirement savings or another source, or simply do not have enough funds to finish repairing their homes.
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THE LONG ROAD HOME