Superstorm Sandy struck New Jersey with a vengeance and brought with it unthinkable destruction. Many of Sandy’s victim’s lost everything and need to start over from scratch. Recovery will undoubtedly be a slow and difficult process requiring dedication and substantial resources. While dedication is no problem for resilient New Jersey residents, resources are scarce in the storm’s aftermath and a great deal of assistance is urgently needed.
Insurance will fill a major void in providing financial assistance to those who suffered losses as a result of Sandy, but sadly, many will nonetheless find themselves underinsured or uninsured. Inadequate coverage and policy exclusions are problems which may plague many policyholders. Additionally, the wrath of Sandy was so severe that areas never prone to flooding before now find themselves knee deep in flood waters. This poses a major problem for homeowners who were not required to carry flood insurance. Unreimbursed losses that will result from Sandy will be staggering.
All hope may not be lost. New Jersey residents who are either uninsured or who have losses in excess of their available coverage may be able to seek relief via the Federal Emergency Management Agency (FEMA). Although FEMA assistance was originally extended to only ten of New Jersey’s counties, it has now been made available to residents of all twenty-one counties in the State.
The first step in obtaining assistance through FEMA is to register either online, via telephone or in person at a designated FEMA location. Individuals who have insurance will be required to provide their insurance information and submit a claim to their carriers. Keep in mind that FEMA will not duplicate coverage otherwise available through insurance. FEMA will provide help in the event that an insurance settlement is inadequate to provide safe, sanitary and functional housing or if there is no coverage available to accomplish this. The goal of FEMA is not to reimburse for all storm related losses and make everyone whole again. Rather, FEMA will assist in helping to jumpstart the process. Although, this may not provide complete comfort to those affected, it is a start.
Even less comforting for many residents in New Jersey, particularly in the shore region where many of the dwellings are second homes, is that FEMA does not provide assistance for a home unless it is a primary residence. Owners of shore vacation homes who do not have adequate insurance coverage may need to look elsewhere for assistance altogether.
For uninsured homeowners the options are likely limited. These individuals should seek relief via FEMA immediately, particularly if their primary residence was affected. For those who have insurance but find themselves in an underinsured or uninsured position due to either inadequate coverage or policy exclusions which their insurance carrier claims reduces or defeats coverage, they should also register with FEMA immediately but should consider other available options as well. Your insurance company’s interpretation of whether your loss is “covered” is not the end all and be all when it comes to coverage availability. If you feel that you are entitled to more than your insurance company is offering you or if you feel the insurer’s interpretation of your policy may be inaccurate, you are well advised to have an attorney who specializes in coverage review your policy and advise you of your available options.
Tara A. Speer and Thomas J. Pryor work in Stark & Stark’s Lawrenceville, New Jersey office concentrating their practice in Insurance Coverage & Liability issues. For questions, or additional information, please contact Ms. Speer or Mr. Pryor.