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1. What happens with debris removal insurance proceeds if I participated in the Government-Sponsored Consolidated Debris Removal Program?

In exchange for the Federal Emergency Management Agency (FEMA) assisting the County of Maui and the State of Hawaii with debris removal following the August 2023 wildfires through the Government-Sponsored Consolidated Debris Removal Program, the State/County is responsible for collecting information about insurance from participating property owners to determine whether any insurance proceeds designated for debris removal need to be collected by the State/County to help offset the cost of the Government-Sponsored Consolidated Debris Removal Program. Federal law prohibits a duplication of benefits (see question #4), and the State/County is obligated to ensure that duplications do not occur. The State/County are currently working together to set up a program for debris removal insurance collection.
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2. When will I be expected to provide debris removal insurance proceeds to the State/County?

The first step in collecting debris removal insurance proceeds is for the State/County to receive a cost report from FEMA that is a breakdown of charges for debris removal per parcel. This will not be available until after debris removal for the August 2023 wildfire is complete, which may still be many months out. Based on the information in the cost report, the County will prepare a per-parcel invoice to submit to every insurance company and copied to every property owner. The information in the cost notice is identical to the information in the invoice. Be advised the total amount it will show on the invoice that was expended for clean-up is expected to be very large. Don’t panic. See items 5, 6, 7 and 8 to understand your expected contribution.
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3. What is the County’s role in the debris removal insurance collection process?

In exchange for FEMA assisting the County of Maui and the State of Hawaii with debris removal following the August 2023 wildfires through the Government-Sponsored Consolidated Debris Removal Program, the State/County is responsible for collecting information from participating property owners to determine whether any insurance proceeds designated for debris removal need to be collected by the County to help offset the cost of the Government-Sponsored Consolidated Debris Removal Program. Federal law prohibits a duplication of benefits (see question #4), and the State/County is obligated to ensure that duplications do not occur. Insurance policies vary, and the County will not play a role in adjusting or settling any insurance claims for debris removal.
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4. What does a duplication of benefits mean?

Duplication of benefits refers to assistance from more than one source that is used for the same activity. In this instance, a duplication of benefits would occur if a property is cleared by FEMA and the property owner was paid by their insurance company for the removal of that debris and keeps the money. A duplication of benefits would not occur if FEMA cleared a property and the owner incurred additional costs to complete the debris removal and the owner was paid insurance funds for the additional expenses. This is likely for some debris items that were not covered by the FEMA program like certain burned trees, small structures, or other miscellaneous items that the property owner had to have removed.
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5. How will I know what part of my insurance coverage is available for debris removal?

You should work with your insurance company to determine the available insurance funds that are designated for debris removal coverage in your policy. These funds are referred to as “debris removal designated insurance.” If you need additional assistance, you can contact the Hawaii Insurance Division (808-586-2790; https://cca.hawaii.gov/ins/fire-claim-information/), United Policyholders (415-393-9990; http://uphelp.org) or The Legal Aid Society of Hawaii, (1-800-499-4302; https://www.legalaidhawaii.org/) for assistance.

6. What portion of my homeowner’s policy will the County collect for debris removal?

It depends how funds designated for debris removal are handled in your policy. You should consult with your insurance carrier to determine these amounts and how and when they are paid (see question #5). Generally, homeowner policies provide debris removal coverage in one of two ways:

• Specified or Separate Amount: Some policies include debris removal insurance coverage in a separate, specified debris clause. Such policies may provide a specific dollar amount or provide debris removal coverage as a percentage of the other coverage limits listed in the policy (for example, 5% of the policy limits for the primary structure, other structures, and/or personal property). In this case, the County will only collect up to the specified amount designated in the debris removal clause. You will not owe the County any additional money, even though the actual costs to remove the debris exceed the amount designated in your insurance policy for debris removal.
  

• No Specified Amount: Another type of debris removal insurance coverage does not have a specified amount but includes the costs of debris removal in the total insurance proceeds provided for the primary structure and/or other structure, or personal property. If you have this type of policy, the County will only attempt to collect insurance proceeds for debris removal after you have rebuilt your home. The County will only collect money that remains in your insurance policy for debris removal, if any, after the rebuild is complete or you have purchased a replacement home. If you spend all of your insurance proceeds rebuilding or on the purchase of a replacement home, you will owe nothing for the Government-Sponsored Consolidated Debris Removal Program.

7. If FEMAʻs costs exceed my insurance coverage for debris removal, will I be required to pay the difference?

No. The only money the County will collect on behalf of the State and Federal government is insurance proceeds designated for debris removal, less any offsetting expenses (see question #6).

8. What if I incurred my own additional expenses for work related to debris removal?

You may use your insurance proceeds to cover expenses for work related to additional debris removal, or for repairs required on your property resulting from the debris removal process (offsetting expenses). You should submit documentation supporting your additional expenses. After we receive the cost report and send out invoices, instructions on how to provide that supporting documentation will be provided with the invoice and will be made available at https://www.mauirecovers.com/debrisremoval/. If there are any designated debris removal insurance funds remaining after you are reimbursed for your offsetting expenses, that balance would be due to FEMA. Qualified expenses could include any of the following:

• Expenses incurred by a property owner to remove additional debris from their parcel that was not included in the Government-Sponsored Consolidated Debris Removal Program.

• Burned tree removal, provided the activity for which the costs were incurred was otherwise covered by the policy category.

• Expenses used to remedy over-excavation issues as a result of the government-sponsored program.

• Expenses used to repair property that was damaged as a result of the Government-Sponsored Consolidated Debris Removal Program.

Be prepared to submit documentation and receipts to the County if you seek to offset the amount of the cost report (refer to the instructions sent to you with the invoice).
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9. What is the difference between a cost report and an invoice?

The County will receive a cost report from FEMA that is a breakdown of charges for debris removal per parcel, likely to include the proportional cost of the temporary debris storage and permanent debris storage. Based on the information in the cost report, the County will prepare a per-parcel invoice to submit to every insurance company and copied to every property owner. The information in the cost notice is identical to the information in the invoice.
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10. I heard the County is going to contact my insurance company for information. What information is the County requesting from my carrier?

The County will invoice all insurance companies based on cost reports received from FEMA for each individual property, and all property owners will get a copy. In addition, the County will request insurance companies to provide the following information for each policy that insured a property that participated in the Government-Sponsored Consolidated Debris Removal Program: A copy of the policy and/or declarations page and the amount in the policy dedicated for debris removal coverage (see Question #6).
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11. If my insurance company has already paid me debris removal designated insurance funds, and I receive the County’s invoice, when is payment due?

• If your insurance policy has a specified amount for debris removal designated insurance funds, you do not owe anything until you have completed your property’s debris removal (including trees) and/or completed any repairs to your property caused by the Government-Sponsored Consolidated Debris Removal Program. For many folks this is already done, so just hold on to your insurance proceeds until the tallying is complete and invoicing can begin.

• If your insurance company does not have a specified amount for debris removal insurance funds, you do not owe anything until you have completed your property’s rebuild.
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12. If my policy does not specify an amount for debris removal, will you still seek to collect FEMA’s debris removal costs from my insurance carrier or from me?

Yes, but only to the extent that insurance funds remain after your rebuild is complete or you have purchased a replacement home. All insurance carriers will receive an invoice for FEMA’s costs, with a copy to property owners.
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13. I received a letter from FEMA saying the government would not collect debris removal insurance funds used to address unresolved debris removal issues. Does that mean I won’t get a bill for the Government-Sponsored Consolidated Debris Removal Program?

Your insurance company will receive an invoice for FEMA’s debris removal costs, with a copy to you. If you received such a letter from FEMA and incurred expenses to resolve debris removal issue(s), you may be reimbursed by your insurance company or the County out of your debris removal insurance proceeds. If there are unused debris removal insurance funds after you are reimbursed, the State/County will collect that money to pass on to FEMA. If there are no debris removal insurance funds remaining after you are reimbursed, you will owe nothing to FEMA.
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14. I have received all available insurance money from my policy, and I haven’t started rebuilding so I don’t know what other debris removal expenses I may incur. When I get the invoice, when will payment be expected?

In several months, you receive a copy of the invoice with additional instructions on what information the County will need from you. At that time, you will be prompted to indicate whether you have completed all debris or may still encounter additional debris removal expenses.
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15. My insurance company won’t release debris removal designated insurance funds until they get an invoice. If they pay the County directly and I have offsetting debris removal expenses, how will that be handled? Will the County write me a check?

You will be notified when the County receives debris removal designated insurance funds from your insurance company. At that time, further instructions will be provided so that you can receive offsetting debris removal funds.
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16. If I receive debris removal designated insurance funds from my insurance company after the County sends out invoices, what should I do?

If the check is made payable to you and the County of Maui Office of Treasury, you should endorse the check and submit it to the County at the below address, and the County will pass on funds to FEMA. If you incurred eligible offsetting expenses to resolve debris removal issues, submit all supporting documentation and receipts with your check. The County will deposit the check and can issue a reimbursement check to you for those documented offsetting expenses.
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If the check is made out to you, you may either:

• (1) Deposit the check into your bank account and write the County a check, or

• (2) Endorse the check over to the County. If you incurred eligible offsetting expenses to resolve debris removal issues, submit all documentation and receipts with the check. If you have endorsed the check over to the County, the County will deposit the check and can issue a reimbursement check to you for those documented offsetting expenses.

NOTE: If the check is made out to two parties as “Jane and John Doe,” both parties must endorse the check over to the County. If the check is made out to two parties as “Jane or John Doe,” either party can endorse the check over to the County.
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​Checks should be delivered or mailed to:

County of Maui
Office of Treasury
2200 Main St.
One Main Plaza Bldg, Suite 205
Wailuku, HI 96793