The white paper cites increased property insurance deductibles and lower sub-limits for damage from natural disasters as an impetus for risk managers to gain a firm understanding of the FEMA claim processes, limitations and requirements.

Additionally, the paper delves into the notion that insurance claims often exhaust property insurance policy coverage before they recover all property damage, extra expense and business interruption losses. In these circumstances, many public and private companies would have little recourse to recover these uninsured losses beyond their property insurance policy. Fortunately for some entities, particularly certain private non-profit organizations, FEMA provides additional funding to recover certain emergency protective costs and property damage losses beyond insurance.

The paper was authored by Robert Reeves, a partner at Ernst & Young, and Sheri Wilson, a senior manager at the firm. Both Reeves and Wilson concentrate on complex insurance claims and dispute-related services.

This issue of Risk Insights is available to RIMS members free of charge here. Launched in 2008, this white paper series will continue through 2010.

Note: Members of the media who would like to obtain a copy of the paper may contact Amy Benson at abenson@RIMS.org or (212) 655-6059.