The answer is no. FEMA cannot make you whole again if you experience a loss due to a natural disaster. For this reason, FEMA strongly encourages you to purchase earthquake insurance to protect your home equity, because “Earthquakes Can Drain Your Bank Account“. FEMA disaster assistance covers basic needs only and will not compensate you for your entire loss. Consider the following two homeowners – both own the same style home with the dwelling valued at $500k, and both experience a total loss due to an earthquake. Homeowner A will likely lose all of their home equity, and will still owe on a mortgage: Homeowner A does not have earthquake insurance, so they apply for FEMA assistance. After a lengthy approval process, FEMA provides a small grant for temporary lodging because the dwelling is unlivable.  Expenses for repairs exceed the conditions to make the home safe, sanitary and functional and, therefore the homeowner is ineligible to receive FEMA assistance for repairs. Homeowner A might be eligible for a SBA loan for $250k, but this likely won’t be enough to rebuild, and must be repaid, on top of the current mortgage. Homeowner B will likely save all of their home equity, and enjoy continued growth: Homeowner B has a full coverage earthquake insurance policy and  immediately files a claim with their earthquake insurance provider. The claims process is fast, and the homeowner receives temporary living expenses while their home is rebuilt. The dwelling and other structures will be fully rebuilt, all personal property will be replaced, and this homeowner won’t need to worry about the increased construction costs that come with demand surge after a catastrophe. Homeowner B will not only recover their home equity, but will likely enjoy an increased value that often occurs when the local housing market becomes distressed after a disaster.