$1K deductible for disaster assistance is 'excluding most Islanders,' says Green MLA

Green Party MLA Hannah Bell says the province's disaster assistance program is not what it should be and she couldn't believe it when she heard a $1,000 deductible would be applied to claims.

'This a bureaucratic, complex, insurance-based model'

CBC News · Posted: Sep 24, 2019 5:00 AM EDT | Last Updated: September 24, 2019

The P.E.I. Disaster Financial Assistance Program was described by government as a way to help Islanders, small businesses and non-profits deal with the costs to repair or replace uninsurable basic property loss. (Laura Meader/CBC)

Green Party MLA Hannah Bell says the province's disaster assistance program is not what it should be. She said she couldn't believe it when she heard a $1,000 deductible would be applied to claims.

"It's excluding most Islanders, who do not have a spare $1,000 available for emergencies," Bell said.

According to the government website, the program can help individuals, non-profits, municipalities and businesses dealing with the aftermath of post-tropical storm Dorian.

"Individual homeowners and not-for-profit organizations are responsible for the first $1,000 worth of damages," the website says. It also says, "If damages are less than the deductible, no claim will be processed."

MLA Hannah Bell says she has heard from constituents who can't pay the deductible. (Laura Meader/CBC)

Bell said she has heard from constituents and non-profits concerned about the deductible.

"My first response when I got the first email was well that can't be right, because it just didn't make sense," Bell said.

"People are really upset."

Asking province to change program

Bell said she reached out to Minister of Justice and Public Safety Bloyce Thompson, asking him to reconsider the deductible.

"The word is already out there that there's no point registering because the program isn't going to help you," Bell said.

Bell believes many people will be trying to recover costs for tree removal, roof damage, loss of groceries, or running generators, and she said that would be in that $1,000 range.

"This is a bureaucratic, complex, insurance-based model," Bell said.

Numerous trees and power lines were downed when Dorian hit P.E.I. (Laura Meader/CBC)

Bell also questions eligibility criteria that will require people to have a denial letter from an insurance company.

"The damage incurred must not have been reasonably insurable. A denial letter from insurance company will be required to support the application," the P.E.I. Disaster Financial Assistance Program guide says.

"It's very disappointing, " Bell said. "We need and expect more."

Province says waiver available

The assistance program started receiving applications on Sept. 18. According to the program guide, "the maximum payable payment or repair costs will be limited to $200,000 or the value of the property based on the provincial tax assessment."

In an emailed statement a spokesperson with the Department of Justice and Public Safety said "government recognizes the $1,000 deductible may be beyond certain individuals' means."

"For that reason, there is a mechanism in place, a waiver to help with those individuals," the email said.

The province said applications will be reviewed on a case-by-case basis.