After many disasters in the U.S. there’s mention of FEMA offering low interest loans, I’ve read the maximum loan is $200K for homeowners. As an example if in fact if true, 2,000 homes were burned down in Hawaii, many of the homes lost had values in excess of $1M, do homeowners need to locate an additional loan of $800K?
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I think you’re confusing the value of the entire property with the value of the actual dwelling on that property.
The value of a property includes the land. The value (or cost of replacing) a home does not. The owners who lost homes in Lahaina still own their land, and therefore will not be compensated for that part of the total value.
While $200K is probably not enough to cover the cost of building a new, modern home in Lahaina, it will get you a long way toward that goal.
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