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Health & Fitness

BEWARE: Storm Chasers and FEMA Scams

How FEMA works and safeguards against rip-offs

BEWARE: Storm Chasers and FEMA Scams

Posted on April 23, 2013 at 12:26 pm Email Print   Comment

As a construction contractor (Harrison Residential Support 630.264.2320) and building construction consultant (Harrison Architectural Support Services 630.264.2320) I have been busy fielding calls since the storm of last week. I am a seasoned FEMA inspector as well with over 1100 inspections and 5 major disasters under my belt. This past storm and the associated flooding has me more than a little concerned for my fellow citizens.

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Disasters can bring out the best in people, from neighbors helping to fill sandbags to business owners donating time and materials, to people opening their homes to shelter neighbors and even strangers. This is what communities do when disaster strikes. BUT....there are always incidents in which unscrupulous people try to take advantage of victims. I have seen several incidents over the weekend that prove that point. Storm chasers and phony FEMA reps come out of the woodwork after these type of events.

Here is how FEMA can assist you. IF...and that IF is usually dependent upon how the locals assess a disaster...FEMA is directed by presidential order to render assistance to an area several things happen. FEMA mobilizes its' own personnel and establishes a DRC, or Disaster Relief Center. They will usually also have satellite DRC's throughout a wide spread disaster area. These DRC's will provide assistance in various areas from filing a request for FEMA assistance for individuals to providing material and specialized support to various government agencies at the state and local level. FEMA will work hand in hand with the SBA (Small Busimess Administration) to provide assistance in the form of low interest or no interest loans to business AND INDIVIDUAS to recover from damages caused by the event. IT IS IMPORTANT to understand that individuals and homeowners will also qualify for SBA loan assistance and that you, as an individual, can take advantage of these low cost loans. Homeowner and renter request for assistance falls under the FEMA Individuals and Household Program (IHP). Assistance comes in the form of financial grants (you do NOT have to pay them back) and loans from the SBA. 

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Once your area is declared a disaster area, it will be assigned a Disaster Relief Number (DR). FEMA may set up locations at which you may apply for assistance in person. Be prepared for a lengthy wait as you will not be the only person needing help. If you elect to call the toll free number (withheld pending confirmation of declaration) for FEMA you can also expect a long wait. Do not get discouraged, there are literally thousands of people calling at the same time, so take a deep breath and try not to stress. Once you get through to a repesentative, you will be assigned a designator or FEMA application number (FAN) and asked a series of questions about your situation. You should be prepared to provide insurance information, mortgage information, and data pertaining to your household. Remember, RENTERS DO QUALIFY for FEMA assistance. After the representative has input your data, you will be assigned to an IHP inspector.

In MOST cases, these inspectors are working as subcontractors to a prime contractor under the direction of Dept Homleand Security/FEMA. There are some very highly qualified inspectors doing this type of work, and there are also many that have little or no experience. This is due to the fact that inspectors are "on call" and are paid only for the inspections that they CORRECTLY do. They cover their own expenses such as phones, housing, food and fuel. Prime Contractors do not always have time to properly vett each inspector's application so some poor performers do get deployed to the field. They normally do not last long, though, as their fellow inspectors and Prime Contractors report incompetence to FEMA. 

Due to the volume of cases each inpsector needs to address, the inspections themselves are streamlined for the situation. FEMA uses a template form of software that is efficient and detailed. An experienced inspector should be able to complete a standard inspection in 30 -40 minutes, slightly longer for floods. If you are merely claiming chainsaw, generator and fuel, as is common in hurricane disasters, the inspection can be completed in as little as 10 minutes.This is not the case in full blown inspections. BEWARE of inspectors that are done in just a few minutes, have no tape measurers or do not enter each room in the house....they are bad apples and you should report them immediately.

So how do you know if your inpector is legitimate? First, check his/HER badge (yes, there are some truly skilled female inpectors, I know because I trained a lot of them!). The badge should have a photo ID of the inspector,the inspector's ID Number (badge number) the name of the prime contractor (usually PB or PaRR) and either the FEMA logo, the Dept. Homeland Security logo, or state "Under contract to FEMA/DHS" on it or all of those items mentioned. Dept of Homeland Security periodically changes the badge appearance for security reasons so you may have a different badge for the inspector that performs a re-inspection or Quality Control inspection if needed. In either case you should write down the information on that badge and keep it for further reference.

Next, the inspector will have a GOVERNMENT ISSUED data entry device. The device may be a laptop, a smart screen, or in the newest issues an I-Pad type device. All devices will be labeled "Property of US Government" or property of the issuing agency...NOT the inspector's name. If they show up with a suspicious badge and a laptop covered with personal decals you may have an impostor on your hands. REMEMBER: The inspector should already have your address, your ID number, household composition and may even have your insurance carrier's info in his device and should only ask you about these details to confirm his data or to ensure that you did not omit anything during your initial intake interview.

The inspector will be required to shoot 2 pictures of the residence, preferably one with the street number clearly visible so make sure your mailbox or front door has a number. If the inspector allows you to be included in the picture, they are either inexperienced or not genuine. Either way, you should report this to either FEMA or the prime contractor.

Inspectors are only allowed to perform visual inspections during periods of daylight visibility. Inspections scheduled at sundown do occur, but no inspections before sunrise or after sunset are allowed. Occasionally an inspector will bend that rule if your only claim is a generator, chainsaw or fuel, but don't count on it nor should you insist upon it. The inspector is only allowed to offer 3 attempts to meet with you and perform the inspection. If you miss those appointments, the inspector sends your application back and you will have to wait for a reschedule, usually with someone that is a bit less patient regarding missed inspections!

To qualify your expenses for chainsaw, generators, drying fans, shop vacs, and related items for clean up you will need to provide receipts. Those receipts must be dated within a designated allowable time of the disaster to qualify. In other words, if you bought the item well ahead of the storm, do NOT try to get re-imbursed by altering that receipt or you may be looking at a serious federal charge resulting in a fine of up to $250,000, imprisonment, or both as per 18USC 287,1001 and 3571 and a few other nastier little statutes! During Katrina, I encountered several instances where the same generator and receipts were passed among various people and claimed as their own. WE HAVE WAYS of tracking those items folks, so don't even try that scam.The dishonest folks that I encountered were all punished severely and should serve as an example.

Now we get to the paperwork and the money. Your inspector will get your signature on a FEMA form, most likely a variation of FEMA FORM 90-69(available in other languages). That form will have your inspector's number (NOT name), your name and signature, your FEMA application number, your date of birth, the FEMA Disaster Number, and your address. There is a possibility that the newer forms will all be electronic (so make sure their device is legitimate!), but I rather doubt that is the case. Be prepared for both. Make sure you have your homeowner's insurance and flood insurance if applicable, insurance agents data, your mortgage or property tax info, social security cards on all dependents if possible, and power of attorney if applicable. It is advised that an person fluent in English be present during the inspection.

For RENTERS: Have a copy of your lease or cancelled rent checks, FEIN or DBA paperwork if self employed, and enrollment papers if a student. These items allow the inspector to promptly process your data without losing time (and money!)and  without having to check County records. (Yes, we check taxes and insurance status!) This delays an inspector from assisting your neighbors so please have your pertinent data on hand. 

Regarding your inspection, if your home is not accessable by road or foot, that inpection will be rescheduled. If you need a boat to access your home, inform the inspector when he calls you to schedule your inspection. The inspector will be required to meet with you and to take pictures and fill out forms, but the meeting will be brief and then the two of you can attend to other business. IT IS ESSENTIAL THAT YOU FILL OUT AND APPLY for the Small Business Administration loans that your inspector provides you. Your data on those foms helps in determing whether or not you qalify for a grant (not paid back) or a loan (low interest or no interest) or both. DO NOT REFUSE this offer simply because you don't think you'll qualify or do not want the loan. You do NOT have to accept the loan!

What will FEMA do for you? FEMA has an obligation to the citizens and legal residents to assist disaster victims in making their homes "Safe, Sanitary, and Secure". This means that they may assist you FINANCIALLY in debris removal, making sure your home is secure (you have doors and windows that will lock, no disaster related openings that allow entrance) making sure it is safe (the house hasn't been structurally compromised, hazards) and there isn't a danger of desease (sewer back up, standing water, mold,etc.). What FEMA may also assist in is providing a basic clothing allowance (not a full wardrobe!) basic housing needs (furniture, TV, Radio, kitchen utensils) and school supplies (textbooks, unforms, laptops) and in some cases even basic transportation assisatance (No...FEMA ain't gonna' replace your Corvette or fix the mirror on your mini-van!). FEMA will also help if you lose work clothes or tools if those are paid for by you as a condition of employment. They do NOT cover self employed tool losses.

What FEMA will not do is pay for all repairs to your house. They will assist in paying for repairs NOT covered by your insurance in some cases, and will assist in getting you financed for some repairs, and also assist in the loss of personal property deemed essential... but they are NOT going to bring your million dollar home back up to original value...its our taxpayer's money after all! FEMA will NOT perform repairs to your home. FEMA will NOT cover damages to your second home either, only the residence that you live in at the time of the storm.(there are few exceptions)

IF YOU RENT, then FEMA will only assist in personal items that you lost and perhaps uncovered damage to a vehicle. You will not be given assistance for structural damage as a renter. Homeowners and landlords have to file for assistance seperately. Landlords that try to claim a renter's FEMA assistance funds are in violation of federal law. YOU do not have to surrender your FEMA checks to the landlord. If you are a roomate of a homeowner you may apply for assistance seperately as well.

All victims, as long as they are LEGAL residents of the US, can qualify to get emergency assistance for food and temporary housing. This can be done almost imediately at the DRC or after your telephone interview. The following items do, in fact, qualify as a "home" as defined under FEMA: Tents, Trailers, any converted vehicle whether it is mobile or not, boats, sheds, and even caves and treehouses, as long as you can PROVE that it is your primary residence. Don't be amazed, I've inspected just about every type of dwelling you can imagine and most of them qualified as a primary residence!

One of the hardest things to understand about a disaster is the impact upon local economies.By providing emergency funds, FEMA helps those economies survive. People wth money will eat, and that keeps them healthier and less at risk of contracting or spreading disaster related deseases (Typhoid, Cholera, Dysentery, etc). Billy Bob and Sally Jo keep their jos at the movie house and corner kitchen and continue to spend their paycheck for food and rent and other services within their local business communities. This also keeps morale up in a community that has been devastated. How much asistance a person receives is determined by DHS/FEMA, NOT the inspector, so do not put them in an awkward position by repeatedly insisting they tell you what you'll get...they simply do not know. Any figure they give you is merely conjecture and not reliable.

BEWARE of the storm chasers and FEMA impostors. FEMA inspectors have placards that identify their vehicles, but those placards are sometimes stolen or dupliated. Storm Chaser or "Gypsies" will often have magnetic signs that state they are FEMA contractors authorized to perform repairs...but that is a scam. FEMA does NOT contract anyone, nor do they authorize anyone to do repairs to individual homes. It is a violation for any FEMA Inspector to solicit business for themslves from one of their "inspectees" or to reccomend or distribute sales materials for any contractor to a vicim they are assisting. If this occurrs, report your inspector immediately!There is an exeption for the "Blue Roof" program, but that is actually administered by Army Corps of Engineers and should not be in effect in this aea.

Finally we get to Cause of Damage, or COD. This entry into your inspection form is very important. This area was hit hard by both flood waters and sewage backups. FEMA's definitions of flood are quite liberal and it may impact your assistance. It is important to determine how the water got into your home. If the rains overflowed your gutters and weeped into your home, then it is, in fact, a flood, whether you live near a body of water or not. Likewise if the wate came in from your yard. If your storm drains backed-up into your home or basement, then it is not a flood, its a sewer back up. If the tree blew down, caused a hole in your roof and water got in, it is wind driven projectile that caused the damage. If your siding or shingles were blown off and water got into your house then the COD is wind driven rain. Occasionally we get more than one cause of damage. This is why it is vital to keep records on your observations and have photos or video handy for your inspector to see. Remember, if you do NOT agree with the inspectors call (and that is way more common than I like!) you can appeal that decision and demand a re-inspection.

My final advice is about contracting repairs. If your home was damaged, do business with a reputable contractor from your area whenever possible. A tip-off and red flag are shiny trucks that look like they've never been on a jobsite and have out of state license plates. High pressure salesmen warning of impending death and disease if you don't sign the contract immediately are another red flag. Beat up work trucks are not necessarily a bad sign IF the person can show you a copy of their Busines Insurance (if they don't carry  a copy of it in their wallet...can you really believe they are responsible?) Check insurance...with the listed agency. Some scammers pay the first month, get a certificate of insurance, then drop it immediately but still show their insurance papers to gullible clients who assume they are legitimately insured. If an uninsured person gets hurt at your home, it can be disasterous!

When it comes to down payments...be careful! The rate of "50% down and the rest when I finish" can be disaterous if the contractor is not known to you. Gypsies usually use these terms and then disappear with the money. Contractors with poor business skills often wind up asking for unscheduled pay-outs in order to finish the job. Worse yet is a "time and material" agreement, where the client is charged by the hour. While that technique is a safeguard against Gypsies and Scammers, it places the client in a position where they have to trust that work is actually being done at an acceptable level of productivity...and there is no accurate costs to project for the project.

My company does things a bit differently. For construction jobs we bid lump sum only. We charge a very nominal % down (makes it a legal and binding agreement), then a payout for materials and start up once materials are scheduled and permits approved. Then we schedule payouts at agreed upon intervals. Our clients pay for the materials themselves to avoid contractor mark-ups and have no worries about material liens against their property (a big problem that affects the industry reputation when contractors fail to pay for materials!) this makes it easier for us regarding administration and safer for our clients. When we do Project Management or Homeowner Completion projects we charge by a different pay schedule (hourly ,lump sum. % of project savings or a combination)

Finally, a word about references and licenses. Nobody in his right mind will give you a reference that doesn't rave about them! I've been burnt even after checking sub contractor's references from previous clients and I'm in the industry! I prefer to use professional references. Want a concrete guy..ask a framer, they know the quality of the work better than any homeowner does. Want a framer..ask a sider. Trim or drywall..ask a painter, they see all the mistakes! Regarding licenses...the only State licenses issued in the trades are for Roofers and Plumbers (trades, not engineering or Architecture). Electricians have municipal licenses that are usually honored by most municipalities (Chicago is an exception), There is no state license for carpenters or General Contractors, so when it says "Licensed and Bonded" you should ask what type of license from what authority and what bond is posted where. Also, when having any major project done call your insurance agent and get a temporary rider to cover the "just in case" scenario. It is better to spend a few dollars for security than get hurt by a "lowest bid wins!" mentality.

I hope this blog assists you in your time of need. Remember folks, this is a community and we need to pull together and help each other. Let's pay our bills, spend some money and keep others going (within reason), and volunteer to do what we can for each other. There is time to bicker and blame later, but right now we have 2 more inches of rain coming at us, so lets pull together.

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