Disaster Costs
(04/01/09 – 06/30/09)
Disaster cost expenses, including charges for the repair of a home damaged or destroyed by a natural disaster, such as a fire or flood, are allowable for NA only.
A disaster cost expense may exist when the following apply:
Damage was caused by a natural disaster.
The damage effected one or more homes.
NOTE Designation of a disaster area by a local, state, or federal agency is not required.
The participant has the option of using the expense as a one‑time deduction or prorating the expense over the remainder of the certification period.
The cost of repair or replacement that has been or will be reimbursed by relief agencies, insurance companies, or other sources is not an allowable expense.
When a participant has disaster cost expenses, elevate the circumstances, all available verification, and the budgeting option selected by the participant to the Policy Support Team (PST). The PST will provide keying instructions.
Verification of disaster cost includes the following:
The damage was caused by a natural disaster.
The cost of repair or replacement.
The expense will not be reimbursed by a relief agency, insurance company, or other source.