The millions of Federal Emergency Management Agency dollars given to help local tornado victims recover from the recent storms come with a word of warning: If you receive money from FEMA and insurance agencies for the same losses, you will be asked to repay FEMA.
“In a perfect world, it wouldn’t happen,” FEMA spokesmen Greg Hughes said. “But we absolutely tell them there is that possibility.”
Known as recoupment, the process can happen more than a year after the event, if FEMA receives information that duplicate benefits were paid.
To avoid duplication, applicants are asked at registration if they have insurance. Generally, applicants are asked to submit a copy of their insurance settlement or their denial letter in writing before they are eligible for FEMA assistance.
Hughes said disaster victims can help by making sure they have all their insurance paperwork with them when they file for claims.