Your Survival Blog
I now pronounce you … a disaster
As an American, I grew up hearing various public officials declaring that things were officially disasters. A few months ago, after a perusal of the news, I started wondering.
What does it mean, exactly, to “declare a disaster”? Why is it done, and to benefit whom? Do any officials outside the United States engage in this sort of announcement? And what do you do if your area is declared?
I decided to sit down and find out.
Let’s cover the third question first. Yes, non-Americans do this from time to time. Australians do; in 2000, the premier of New South Wales declared a natural disaster after the state was overwhelmed by widespread flooding. In France, a national disaster insurance program requires the government to issue an “Arrêté de reconnaissance” (government declaration of disaster) in order to settle a claim — an arrangement under which, according to the US Government Accountability Office, the French government declared 110,000 natural disasters between 1982 and 2005! Canada seems to have different models depending on the province; in Ontario, the Minister of Municipal Affairs and Housing must declare a town a disaster area (after a tornado, for example) before it can be eligible for the Ontario Disaster Relief Assistance Program. Yet many approaches to disaster relief differ from the American model.
In several countries, the government provides national coverage for (at least some) disasters. France has a Catastrophes Naturelles program for uninsurable disasters, from avalanche to earthquake to drought. Japan provides reinsurance for earthquake coverage by private companies. New Zealand covers uninsurable risks from earthquake, windstorm, and flood — providing a homeowner has purchased fire coverage. Spain provides government insurance and reinsurance for such disasters as volcanoes, tsunami, and meteorites. Switzerland makes catastrophe insurance mandatory, and prohibits or restricts building in flood and avalanche zones. Taiwan has an earthquake approach similar to Japan’s, though it also includes explosions, landslides, and fire. Turkey established compulsory earthquake insurance in 1999, but later declared all its citizens eligible for government funds whether they had insurance or not.
Other countries emphasize the private market and have no national reimbursement for disaster victims. Germany and Italy rely on optional natural-disaster coverage added on to insurance policies. In the United Kingdom, flood coverage is standard for property policies.
In the United States, though, there are two forms of federal involvement. One is the National Flood Insurance Program (earthquake coverage is handled optionally by private insurers). The other is those formal disaster declarations, which permit assistance from the federal government to disaster victims.
Here’s how a national disaster is “declared” in the United States, and what that means to you:
In order for the President to declare a disaster at the Federal level (something done, on average, 33 times a year), the Governor of the affected state or territory makes a request through the regional office of FEMA (the Federal Emergency Management Agency). Both state and federal officials assess the damage and its impact; to qualify for Federal relief, the disaster must be “beyond the capabilities of the State and local governments.”
(In many U.S. states, local governments may declare disasters in order to qualify for state aid. The governor may then respond with a disaster declaration, activating state-level emergency management protocols.)
Depending on the disaster, FEMA may then activate disaster programs to bring relief to victims. These include aid to individuals and households; aid to public and nonprofit agencies for emergency services and repair of public facilities; and hazard mitigation measures to prevent future recurrences.
Individual assistance in the US can include temporary housing, grants to repair damaged homes (or in rare cases, replace or construct them), and grants for medical, dental, funeral, moving, legal, and other expenses. It also might include unemployment assistance to people whose jobs are lost due to disaster and who are not covered by other unemployment programs. Crisis counseling programs are sometimes established for people in affected areas — both immediate outreach, and services lasting up to nine months thereafter. Tax breaks are offered to people who’ve lost property exceeding 10% of their gross incomes, and refunds can be expedited to taxpayers in disaster areas.
Public assistance is available for a variety of projects: removing debris, providing emergency protection, repairing roads and bridges, providing clean water and other utilities, and repairing public buildings and parks.
The federal Hazard Mitigation Grant Program allows communities to buy or relocate property in hazardous areas; elevate buildings prone to flood; reinforce buildings against earthquakes, wildfire, or flood; and develop mitigation plans. The primary emphasis of the program is on floodplains and floodproofing.
If your corner of the United States is declared a federal disaster area, listen to the news for information on where to go and what to do, and visit FEMA’s Web site at http://www.fema.gov.
If you’re reading from another country and have knowledge about your country’s disaster-relief programs, let us know and we’ll cover them in a future column!
Next entry: Putting your eggs in one basket
Previous entry: Auto-da-pay?: keeping your finances in shape for emergencies