Under what circumstances is federal insurance assistance available?

Federal insurance assistance is primarily designed to aid individuals who are un- or underinsured, which encompasses those who may not have adequate insurance coverage to fully address the losses incurred after a disaster. This assistance is pivotal because it ensures that individuals who may not have sufficient resources to recover can receive the necessary support for rebuilding and recovery.

Those who are fully insured, while they may have their claims honored by their insurance companies, do not typically qualify for federal assistance since they have coverage in place intended to cover their losses. Moreover, receiving assistance based solely on having no insurance does not align with the objectives of federal assistance programs, which aim to fill the gaps for those who need financial support due to inadequate insurance levels. If a victim's insurance claim is denied, they might still have specific avenues for appeal or further review, but it does not automatically signal qualification for federal assistance. Therefore, the assistance is particularly targeted toward those in need of significant support due to being un- or underinsured.