The Government of Prince Edward Island announced today the compensation process for those eligible individuals and small businesses affected by the January storm surge. Since the flooding, the government has been busy receiving claims and having adjustors assess damaged properties. All those individuals who submitted claims will be contacted by letter, to be mailed out in the next two weeks. Payment will be available immediately to all those eligible upon presentation of the appropriate documentation.
"To date, approximately 135 claims have been received from Island residents affected by the January flooding," says Wes MacAleer, Minister of Community Services and Attorney General. "A careful assessment of the damage was an important first step in the compensation process. Now we are ready to move forward with issuing payments to those who urgently require them."
Government will follow criteria outlined in the federal Disaster Financial Assistance Arrangements (DFAA). Under the DFAA, compensation will be provided for essentials in primary residences and for certain damages suffered by eligible small businesses.
In principal residences, the program is intended to focus on compensation for basic necessities. Major appliances such as stoves, refrigerators, home heating furnaces and water heaters, which cannot be repaired, are eligible. Where such appliances can be repaired, the cost of repair is eligible.
Based on DFAA guidelines, there will be some claims which will not be eligible for coverage because they are considered nonessentials or they are items which could have been insured. Items which are not eligible under DFAA guidelines include seasonal residences, accessory buildings, vehicles and land erosion.
A deductible will apply to larger claims. For instance, where a claim is more than $2,000 in residential and more than $5,000 in business claims a 10 per cent deductible will be applied.
Minister MacAleer stresses that the compensation program is intended to alleviate hardships resulting from damages to eligible homes and small businesses. The government will be accepting claims for flood damage until May 31, 2000.
To submit a claim or to inquire about the claims and compensation process call the PEI Emergency Measures Organization at (902) 368-6361.