Short answer: file your insurance claim first, then check whether your county is in a disaster area declared for FEMA Individual Assistance and apply. FEMA rules tie its help to your insurance outcome, and help from different sources for the same expense is not paid twice. If your area is declared, SBA disaster loans may cover losses insurance did not. Compare a personal loan or card only after those steps. None of these programs is guaranteed for any one person.
Step 1: file your insurance claim
If you have insurance, FEMA says you can apply for its help, but you must also file an insurance claim. FEMA cannot help with expenses your insurance might cover until you send it your insurance settlement or denial (FEMA). The federal rule lets FEMA assist an insured household when the claim is denied, when insurance money is significantly delayed through no fault of yours and you agree to repay FEMA from it later, or when insurance and other help still do not cover the need (44 CFR 206.113(a)).
FEMA also notes that homeowner policies do not normally cover flood damage; flood insurance is typically a separate policy (FEMA). Read your policy and ask your insurer what it covers.
Step 2: FEMA Individual Assistance in declared areas
FEMA's program for individuals and households helps eligible people who, as a direct result of a major disaster or emergency, have uninsured or under-insured necessary expenses and serious needs they cannot meet through other means (44 CFR 206.110). The expense must be in the state where the disaster was declared (44 CFR 206.113(a)(1)). DisasterAssistance.gov lists the states with a disaster declared for Individual Assistance, lets you check whether your county is included, and takes applications online (DisasterAssistance.gov). FEMA also takes applications at 1-800-621-3362 and at Disaster Recovery Centers (FEMA).
- No double payment: FEMA's policy is to prevent duplication between its programs, insurance benefits and other disaster assistance (44 CFR 206.191(c)).
- You agree to refund FEMA any part of its help that you also receive, or are eligible to receive, from another source (44 CFR 206.113(a)(6)).
- FEMA says money from a crowdfunding page for a specific disaster expense may mean you cannot get FEMA help for that same expense (FEMA).
- Disaster assistance is not counted as income or a resource for federally funded income or resource tested programs, such as food assistance (44 CFR 206.191(b)(2)).
Step 3: SBA disaster loans for homeowners and renters
In a declared disaster area, the SBA offers home and personal property loans for losses not fully covered by insurance or other sources; insurance proceeds may be deducted from the amount you can borrow. On October 30, 2026, the SBA disaster page listed these terms (SBA):
| Term | As listed by the SBA on October 30, 2026 |
|---|---|
| Primary home repair or replacement | Homeowners may apply for up to $500,000 |
| Personal property, such as clothing, furniture, cars and appliances | Renters and homeowners may borrow up to $100,000 |
| Rate | Fixed, not more than 4% for applicants unable to obtain credit elsewhere, as SBA determines |
| Payments | First payment deferred 12 months, with no interest accruing in those 12 months |
| Term length | Up to 30 years, no prepayment penalty or fees |
| Collateral | Required to the extent possible for physical damage loans over $50,000 in Presidential declarations |
The SBA says the funds may not be used to upgrade a home or make additions unless the local building code requires it (SBA). Check the SBA page for your declaration before you apply.
Red flags after a disaster
- Anyone who asks you to pay to apply for FEMA help or to get an inspection. FEMA says it will never ask you to pay for either (FEMA).
- A loan offer that asks for a fee before you get the money; see the advance-fee scam guide.
- Texts or calls offering aid or loans you did not ask for; see the fake loan text and call guide.
FEMA takes fraud reports at its Disaster Fraud Hotline, 866-720-5721 (FEMA), and you can report scams to the FTC at ReportFraud.ftc.gov.
Example: covering a $4,000 gap
If a gap remains after insurance and any aid, this example shows the cost of $4,000 over 24 months at the Federal Reserve's August 2026 averages: 11.90% APR for 24-month personal loans and 22.36% for credit card plans (G.19). Your rate may differ.
| Option | Monthly payment | Interest | Total paid |
|---|---|---|---|
| Personal loan at 11.90% | $188.11 | $514.64 | $4,514.64 |
| Credit card at 22.36% | $208.22 | $997.28 | $4,997.28 |
$188.11 x 24 = $4,514.64, and $208.22 x 24 = $4,997.28. For other ways to cover a gap, see the emergency expense help guide, and for repairs, the home repair guide and car repair guide.
Questions to ask
- What does my policy cover, and when will the insurer decide my claim?
- Is my county in a declared area for FEMA Individual Assistance, and what is the deadline to apply?
- If I borrow now, will I have to repay FEMA or the SBA from insurance money I get later?
This guide explains federal rules in general terms. It is not legal advice.
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Sources
- FEMA: Disaster Rumor Response
- 44 CFR 206.110: federal assistance to individuals and households
- 44 CFR 206.113: eligibility factors for FEMA individual assistance, including insurance
- 44 CFR 206.191: duplication of benefits
- DisasterAssistance.gov: apply for assistance and list of declared disasters
- U.S. Small Business Administration: Disaster assistance, home and personal property loans
- FTC: ReportFraud.ftc.gov
- Federal Reserve: G.19 Consumer Credit (released October 7, 2026), terms of credit, August 2026: credit card plans and 24-month personal loans
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.