Natural Disasters and Asbestos

Extreme weather and natural disasters, such as earthquakes, hurricanes, tornadoes, floods, and fires, can damage asbestos-containing materials in ways that lead to asbestos exposure among first responders and cleanup crews -- but not many people are talking about it.

From: The Public Outreach Department at The Mesothelioma Center

We recently published an educational guide about natural disasters and asbestos:   asbestos.com/asbestos/natural-disasters/
Would you consider adding it to your page to help spread awareness?

Adjusted Cost Basis vs. Decrease in Fair Market Value

If your property is personal-use property, the amount of your casualty loss is the lesser of:

• The adjusted basis of your property, or

• The decrease in fair market value of your property as a result of the casualty

IRS Form 4684, Casualties and Thefts requires you to compare these two figures and will only

allow you to deduct whichever is lower.

Hurricane Laura Damage Estimates in the Billions: in Daily Dose, Featured, News

Hurricane Laura, which made landfall last Wednesday, was the most intense storm to hit the northwestern Gulf Coast since 1856. According to a report from CoreLogic, storm-related damage “brings threat of further economic uncertainty to region.”

Said report included residential and commercial wind and storm surge loss estimates for Laura.

According to this new data analysis, insured wind and storm surge losses for residential and commercial properties in Louisiana and Texas are estimated to be between $8 billion and $12 billion, with insured storm surge losses estimated to contribute less than $0.5 billion to this total. 

In addition to property damages, the ability to make loan payments can become compromised following a hurricane. Overall home mortgage delinquency rates (30 or more days past due, including those in foreclosure) in the Beaumont, Texas (9.3%) and Lake Charles, Louisiana (9.5%) metropolitan areas were already above the national rate (7.3%) based on the May 2020 CoreLogic Loan Performance Insights report. CoreLogic data has shown “natural disasters cause a spike in mortgage delinquencies, which suggests Hurricane Laura will add to the economic hardship families are already experiencing during the pandemic.” 

A Disastrous Disaster Season

The COVID-19 crisis is expected to continue to at least June 1st – probably longer.  Congress is contemplating a fourth “stimulus” bill, providing more money to individuals and small businesses (and perhaps others).   FEMA is playing a very large role in the battle against the virus.

Tornado season typically peaks in June, and hurricane season officially begins June 1st.  Above normal activity is expected for both varieties of severe storms in 2020.  If these predictions are correct, FEMA’s resources will be stretched beyond its limits.

On March 24th, the Washington Post published an article by Nick Miroff, who said, “Coronavirus could be FEMA’s biggest disaster ever, and it threatens to swamp the agency

The coronavirus pandemic has hit the Federal Emergency Management Agency with the most sprawling, complex crisis it has ever faced, a disaster that isn’t knocking down buildings or flooding streets but threatens to swamp the government with cascading breakdowns and supply shortages, current and former FEMA officials say.”

“President Trump has placed FEMA in charge of coordinating the federal response to the outbreak, and while U.S. health authorities remain in the lead on the medical front of dealing with the virus, FEMA has been tasked with handling almost everything else.”

Rachael Levy, writing for the Wall Street Journal, adds, “The Federal Emergency Management Agency, understaffed and facing the coming spring-flood season along with expected hurricanes and wildfires, is racing to adjust to its new role as coordinator of the federal government’s response to the novel coronavirus, a challenge for an agency more accustomed to dealing with natural disasters.”

The New Times contributed to the conversation, adding, “The Federal Emergency Management Agency, the office leading the federal government’s coronavirus response nationwide, is running short of employees who are trained in some of its most important front-line jobs, according to interviews with current and former officials. With wildfire season looming and hurricane season starting in less than two months, the shortfalls could complicate federal response to disasters nationwide.  But even as the virus puts new stress on the agency, it must also remain prepared to handle more typical natural disasters.

Federal scientists last month predicted that 23 states would see moderate to major flooding by the end of May. This week, researchers at Colorado State University warned that this year’s hurricane season, which starts June 1, is likely to produce 16 major storms, of which four were likely to become major hurricanes.”

Awareness of the IRS casualty loss program will take on new significance with the onset of severe weather in 2020, as disaster victims search desperately for options that will provide them the cash they need to begin rebuilding their homes and their lives.  If FEMA is unable to respond as quickly as they have in the past with money and necessary resources, homeowners will not only face frustration, but the beginning of their recovery will be delayed.

The IRS casualty loss program allows homeowners whose homes have been damaged or destroyed in federally declared disasters, to file claims for unreimbursed losses and obtain tax deductions.  Those deductions can provide much needed cash at a critical time.

Awareness of the IRS casualty loss option for qualifying victims has been disturbingly modest.  In recent years, fewer than 10% of those who have suffered unreimbursed losses have filed IRS casualty loss claims.  This contributes to mortgage delinquencies, foreclosures, and a decline in creditworthiness for significant sectors of the population.  In short, it leads to a decline in the financial health of many Americans.

Hurricane Florence, which damaged or destroyed 700,000 homes in North & South Carolina in September of 2018, provides good insight into the scope of the problem. 

Fewer than 10% of South Carolina homes were covered by the National Flood Insurance Program at the time the hurricane made landfall.  This storm, like others in recent years, caused damage in areas not normally impacted by hurricanes.  Consequently, only 1% of homeowners in inland counties like Florence and Dillon had flood insurance.  This is not an isolated example.  We know that fewer than 20% of homeowners who suffered damage during recent hurricanes and floods, carried flood insurance.  We also know that 60% of all homes in America are underinsured.

There are many reasons homeowners fail to properly insure their homes against disasters.  Cost is a factor, as is lack of understanding about policy coverage.  However, it is a fact that the frequency and severity of storms is increasing, and they are affecting properties outside of historical impact areas.

There is no single solution designed to make disaster victims whole.  Nor should there be.  Rather there are a number of options that collectively make it easier for homeowners to survive the economic tsunami following a natural disaster.  FEMA manages several government relief programs; lenders and servicers offer help in the form of forbearance and other programs; insurance companies play their central role; local and national organizations step in to provide basic necessities.  Despite all of these efforts, few whose homes have been severely damaged escape without some unreimbursed loss.

It is not unfair to expect homeowners to share some of the risk in these situations, but when their share becomes so burdensome that they have little choice but to walk away from their homes and their obligations, other solutions need to be instituted or recognized.

In this environment, the IRS casualty loss program should be an essential piece of the overall solution, but as mentioned, few homeowners are aware it exists.  In fact, few people who rush to the rescue after a disaster are aware of it.  Again, the casualty loss program is not meant to be THE solution - only a necessary part of a total solution.

It is a necessary part because it provides cash; cash that does not have to be repaid.  The program is in place; no new regulations are required.  It is flexible; victims can file amended tax returns to get cash quickly, or include their claim with the next regular tax filing.  It is easy; victims only need provide the required valuations and estimates of loss in order to file claims.

Any solution for disaster victims that does not include filing claims for unreimbursed losses under the IRS casualty loss program is an incomplete solution, and jeopardizes the financial well-being of those who suffer losses.

Where disasters occur...

In the past 24 months, only seven states have escaped major disasters (it’s hard to recognized Rhode Island!).

Disaster Count for 2019 (to 10/21/19)

With the recent additions of Hurricane Dorian & Tropical Storm Imelda, the number of federally declared disasters for the year 2019 has grown to 49.

For those who think disasters only occur during hurricane season, or perhaps tornado season, there have been declared disasters every month of 2019 up to October, excluding January.

Tropical Storm Imelda

On October 1st, Governor Greg Abbott has requested a presidential disaster declaration for Southeast Texas following damage assessments from Tropical Storm Imelda.  The governor’s request includes Chambers, Harris, Jefferson, Liberty, Montgomery and Orange Counties, according to a news release from Governor Abbott’s office.  He asked the President to grant this request swiftly.

 Abbott previously declared a state of disaster in several additional counties, including Brazoria, Galveston, Hardin, Jasper, Matagorda, Newton and San Jacinto.  Some of these may be added to the formal request after all FEMA assessments are complete.

 A house must be uninsured and have at least 18 inches of water on the inside to count towards the federal disaster declaration, and 800 homes is the threshold used to trigger a declaration.

 Orange County Emergency Coordinator said his department determined that 2,271 homes received water damage from Imelda.  A resident said, “Most people that flooded don't have flood insurance because they are not in flood zones,". 

From Kin Insurance: providing coverage for homes in disaster prone areas

Interagency Forum on Climate Risks, Impacts, and Adaptation

Hurricane Damage by the Numbers

The Congressional Budget Office (CBO) predicts that the cost of hurricane damage will rise significantly in the next several decades, largely because of climate change and real estate development along the nation’s coasts.

 Total spend on hurricane damage is expected to rise nearly 40 percent, to $39 billion dollars per year. Perhaps even more troubling, though, is that the number of people who are “substantially” affected by hurricane damage is projected to increase by more than 700 percent in that same timeframe, from 1.2 million to 10 million people.

Hurricane Damage by State

Today, the state of Florida experiences more than half of the country’s hurricane damage, as measured by cost. Texas is the second most impacted state, with 13 percent of the country’s spend, followed by Louisiana, with nine percent.

The top 10 states account for 94 percent of the country’s spend on hurricane damage.

Lest we forget...

In the first eight months of 2019, there have been nine (9) Major Disaster Declarations affecting 132 Counties with a combined population of 15 million people living in 5.1 million households.

Just because disasters have not been front page news for a couple of months does not mean we can ignore the devastation that has taken place, and the individuals whose lives have been turned upside-down by these event.

First half of 2019...

Today, Hurricane Barry made landfall in Louisiana, and its impact will likely be felt into Mississippi, Arkansas, and possibly beyond. For those who think this first named storm marks the beginning of the natural disaster season in the U.S., the following statistics might be of interest:

Since the beginning of the year 2019, there have been 50 federal disaster declarations, 7 of which have qualified for individual assistance. The number of people affected by those 7 disasters live in seven different states and 112 counties. The combined population of those impacted counties exceeds 8,000,000, living in nearly 3,000,000 households.

And now we watch as Barry begins to cause flooding on our southern coast.

It’s been a rough year already.

Rising Disaster Costs

2019 Disaster Activity & Outlook

We’re nearly to the end of June, marking the first half of the year 2019. According to the FEMA website (https://www.fema.gov/disasters ) there have been 39 declared disasters so far this year, several of which qualify for individual assistance as well as public assistance. People living in areas qualifying for individual assistance can take advantage of the IRS casualty loss program.

Hurricane season just began, and the outlook is for a “near-normal” year, meaning we can expect a dozen named storms.

For 2019, NOAA predicts a likely range of 9 to 15 named storms (winds of 39 mph or higher), of which 4 to 8 could become hurricanes (winds of 74 mph or higher), including 2 to 4 major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher). NOAA provides these ranges with a 70% confidence. An average hurricane season produces 12 named storms, of which 6 become hurricanes, including 3 major hurricanes.

Despite good snow-packs and a cool wet spring in much of the United States, the National Interagency Fire Center predicts a pretty normal fire season. Their latest report states:

“Looking ahead to August and September the fire potential and resulting activity should increase to Normal in most areas except along the West Coast where Above Normal significant large fire potential is expected due to fuel loading and preexisting dry conditions. A traditional winding down of the Western fire season is expected in Mid-September as fall moisture begins to arrive.”

As I write this, we have witnessed days of tornadic activity that has surpassed that for any previous May by three times. We are currently watching the Arkansas, Missouri & Mississippi rivers race downstream advancing water levels never before seen. This spring’s storms have truly been historic.

When I hear the term “historic” used to describe flooding, I immediately understand that areas that have never before flooded, have been inundated. That, in turn, means that the homes of many residents have been or will be damaged or destroyed by flood waters - and they will have no flood insurance to help them recover from their losses.

In October of 2017, Michael Keller, Mira Rojanasakul, David Ingold, Christopher Flavelle & Brittany Harris wrote:

“When Hurricane Harvey ripped through Hitchcock, Texas, in August, it wasn’t just pummeled by nature. The town of 7,300, just across the bay from Galveston, was also the victim of a bad map: The local flood maps managed by the Federal Emergency Management Agency hadn’t been updated since 1983. That made it harder for residents to know if their homes were at risk of flooding—which might explain why fewer than one in four homes had flood insurance in a town that saw severe flooding during the storm.

Hitchcock was no anomaly. FEMA is supposed to review their maps every five years to make sure they still properly indicate flood risk. But that policy hasn’t stopped flood maps created as far back as the 1970s from influencing where people build or if they have flood insurance, and at what rates. When those maps are wrong it leaves taxpayers on the hook if residents, banks or the National Flood Insurance Program need to be bailed out. And it can lead to billions of dollars in losses for uninsured homeowners who didn’t think their house could flood.

Even FEMA’s newer maps are likely to fall short as an accurate indicator of flood risk because they don’t account for rapid rain accumulation, how buildings are constructed, climate change or expected population growth, among other things.”

This is a problem that has no immediate solution, and consequently many lives will be altered forever.

While there is no good cure for these unfortunate victims, the IRS casualty loss program can help. Unreimbursed losses can be claimed as tax deductions for past, current and/or future years. This could be the only source of money flood victims have after a devastating disaster.

Disaster Relief can help victims obtain the information they need in order to file their claims. That’s what we do. It’s all about helping people rebuild their homes and their lives.

And another...

Iowa Severe Storms And Flooding (DR-4421)

Incident Period: March 12, 2019
Major Disaster Declaration declared on March 23, 2019

Designated Counties (Individual Assistance):

Fremont, Harrison, Mills, Monona, Woodbury

Latest Presidential Disaster Declaration

Designated Counties (Individual Assistance):

Butler, Cass, Colfax, Dodge, Douglas, Nemaha, Sarpy, Saunders, Washington

And now, historic flooding....

Historic flooding is swamping parts of Nebraska, western Iowa and southeast South Dakota, shattering records in at least six locations, so far.

Some flood protection systems have been compromised, bridges washed out and evacuations ordered in a number of locations in central and eastern Nebraska. Evacuations have also been ordered just across the border in western Iowa.

Our thoughts and prayers are with all of you.

Tornado Outbreak

March 6, 2019

Here we go again. 

On Sunday, March 5th, there were three dozen reports of tornadoes in Alabama, Florida, Georgia and South Carolina.  This was the deadliest tornado outbreak in the U.S. since May 2013.

Lee County Alabama Sheriff Jay Jones said Tuesday at a news conference at least 23 people were killed and 90 were injured when the giant EF4 twister with 170 mph winds hit the rural community of Beauregard, and seven or eight people are still missing.  Federal officials estimated that about 1,120 houses were damaged or destroyed.

On Tuesday March 5th, “President Trump approved an expedited major disaster declaration for Alabama in the wake of the deadly tornadoes.

It seems like disasters are striking with incredible frequency.  Even as we pray for victims of one tragic event, another occurs and our attention is shifted to a new group of people who are suffering catastrophic loss.  Yesterday’s victims must feel forgotten in light of today’s new tragedy.

We want people to know we will not forget the people who suffered losses yesterday or a month ago or a year ago.  We remain committed to helping all disaster victims with their recovery through the IRS casualty loss program.

IT’S ALL ABOUT HELPING PEOPLE REBUILD THEIR HOMES AND THEIR LIVES

If you have a loss that has not been 100% reimbursed, call us.  We might be able to help you.

According to the IRS, “You usually have three years from the date you filed your original tax return to file Form 1040X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later.”

IRS will Begin Accepting Tax Returns

January 11, 2019

The IRS will begin accepting 2018 tax returns on Jan. 29, 2019.  At any time after that date, victims of federally declared disasters can file their forms 4684 (Casualty & Thefts) to report losses that may be deductible.  This is often a victim’s first, best opportunity to access ready cash in order to begin the rebuilding process.

2018 was a terrible year for disasters. While there were nearly 100 declared disasters in 2018, the list that follows represents those for which individual assistance is available to those who suffered losses.

2018 FEMA Disaster Declarations with Assistance to Individuals & Households

Georgia Hurricane Michael (DR-4400)

Incident period: October 09, 2018 to October 23, 2018

Major Disaster Declaration declared on October 14, 2018

Florida Hurricane Michael (DR-4399)

Incident period: October 07, 2018 to October 19, 2018

Major Disaster Declaration declared on October 11, 2018

South Carolina Hurricane Florence (DR-4394)

Incident period: September 08, 2018 to October 08, 2018

Major Disaster Declaration declared on September 16, 2018

North Carolina Hurricane Florence (DR-4393)

Incident period: September 07, 2018 to September 29, 2018

Major Disaster Declaration declared on September 14, 2018

California Wildfires (DR-4407)

Incident period: November 08, 2018 to November 25, 2018

Major Disaster Declaration declared on November 12, 2018

California Wildfires and High Winds (DR-4382)

Incident period: July 23, 2018 to September 19, 2018

Major Disaster Declaration declared on August 04, 2018

Wisconsin Severe Storms, Tornadoes, Straight-line Winds, Flooding, and Landslides (DR-4402)

Incident period: August 17, 2018 to September 14, 2018

Major Disaster Declaration declared on October 18, 2018

Hawaii Kilauea Volcanic Eruption and Earthquakes (DR-4366)

Incident period: May 3, 2018 to August 17, 2018

Major Disaster Declaration declared on May 11, 2018

Hawaii Severe Storms, Flooding, Landslides, and Mudslides (DR-4365)

Incident period: April 13, 2018 to April 16, 2018

Major Disaster Declaration declared on May 8, 2018

North Carolina Tornado and Severe Storms (DR-4364)

Incident period: April 15, 2018

Major Disaster Declaration declared on May 8, 2018

Indiana Severe Storms and Flooding (DR-4363)

Incident period: February 14, 2018 to March 4, 2018

Major Disaster Declaration declared on May 4, 2018

Alabama Severe Storms and Tornadoes (DR-4362)

Incident period: March 19, 2018 to March 20, 2018

Major Disaster Declaration declared on April 26, 2018

California Wildfires, Flooding, Mudflows and Debris Flows (DR-4353)

Incident period: December 4, 2017 to January 31, 2018

Major Disaster Declaration declared on January 2, 2018

Collectively, these disasters killed more than 200 people, damaged or destroyed nearly one million properties, and cost tens of billions of dollars.  I can affirm from visiting many of these areas in the aftermath of the disasters that no mere fact sheet or list of numbers can tell the story of the devastation and suffering.

We at Disaster Relief hope we can serve disaster victims by helping them access their own tax dollars via casualty loss claims and begin the rebuilding process.  For those homeowner/taxpayers who experienced losses in 2018, now is the time to consider filing a claim.  The process is very straightforward. 

 1.     Get a determination of your loss (this is what we can do for you) so you can document your claim

2.     You (or your tax preparer) files a casualty loss claim form 4684 along with your return

This may provide a significant tax deduction that could result in a much needed tax refund.

Please let us know if we can help.  You can visit our website at www.disaster-relief.us, or call us at (843) 724-7870.  I plan to be back in the Carolinas, Florida and northern California in the coming weeks and would be glad to meet with you personally.

Mark Stockton

The Camp Fire

December 12, 2018

I have spent the past couple of days in the area of the Camp Fire – the Chico/Paradise area.  I was able to drive to the entrance of Paradise, but not beyond.  It is still off limits - even to most homeowners – while the process of clearing trees and repairing power lines continues.  No one knows how long it might be before residents of Paradise are allowed back in to assess the damage to their homes.

The contrast with the hurricane damaged communities is striking.  I did not speak with a single person in the Chico/Paradise area who had not lost their home or had a family member or close friend lose their home.  The stoicism disguises a burden of grief that has weighed down the entire populace.  Hurricanes Florence & Harvey damaged or destroyed more homes, but the tragic nature of what happened to one entire, small community in northern California is so dramatic it is difficult to imagine or explain.

After Hurricane Florence

December 9, 2018

On September 14, 2018, Hurricane Florence made landfall near Wilmington, NC.  The devastation that followed was of epic proportion.  Although it weakened from a category 3 hurricane to category one before hitting the coast, the rains and storm surge that accompanied the event were disastrous.  It has been estimated that more than 30,000 homes were damaged or destroyed in North and South Carolina – about the same number as were damaged or destroyed by Hurricane Harvey on the Texas coast a year earlier.  In New Bern, NC, a town of only 30,000 residents, more than 4,300 homes were damaged or destroyed.

I visited New Bern in mid-October and the clean up was still going on.  There were mountains of debris stacked beside roads in front of houses that must have been uninhabitable.  However, as I had seen in the aftermath of Hurricane Harvey in Houston in September of 2017, most houses appeared as if nothing had happened when viewed from the curbside.  Some homes showed evidence of water depth on their exteriors, but many did not.  It was impossible to tell whether the homeowners had vacated the properties or were inside relaxing in their living rooms.  It was a very odd experience.

As I write this, I am on my way to Paradise, CA – the town that was virtually wiped off the map by the Camp Fire which burned 150,000 acres and destroyed an estimated 10,000 homes.  I’m curious how my impression will contrast with that of the hurricane damage I have seen.