After a flood, it can take weeks or months to get an insurance payout or disaster relief check. But many people need immediate help to pay for repairs, cover short-term housing costs or make up for lost wages.
As a result, new financial instruments are needed to help provide rapid relief after disasters strike, said Helen Wiley of disaster recovery nonprofit SBP.
Wiley: “Our goal is to provide emergency cash grants to help at-risk families achieve financial stability during this current recovery period.”
In New York City, her team is collaborating on a pilot project to test an approach—a community insurance that could be funded with philanthropic or public funds.
A third-party group, such as a nonprofit organization, holds the policy. When a certain level of flooding occurs, automatic compensation of a certain amount is triggered.
The money will then be distributed to community members who fill out a simple application form. As a result, the model avoids the traditional, lengthy claims process.
Wiley: “This mechanism really allows us to … get money out to families very quickly.”
People can use it for home repairs or whatever they need the most. It is therefore an innovative way to help financially vulnerable households bounce back after a disaster.
Report source: Sarah Kennedy/ChavoBart Digital Media
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