Preparing For a Disaster
11/24/2024Blog Categories
Earlier this fall, Americans got hit with a couple of back-to-back storms.
These storms – and the damage that ensued – inspired me to think. And write this article.
First it was Hurricane Helene. It moved inland from the Gulf, causing major damage from Florida all the way to the mountains of North Carolina.
For our family, it was personal as we were supposed to be visiting the west coast of FL but had to postpone our trip. The island was buried in sand. Our rental house suffered damage and the island needed weeks to re-open.
Once in western North Carolina, the “thousand-year storm” caused immense damage from flooding. We know people directly impacted by the flooding (they lost everything but the clothes on their back!). The pictures were heartbreaking.
And if that wasn’t already enough, another storm came to the scene.
While Floridians were catching their collective breath, Hurricane Milton swept through shortly after.
So much heartache for so many people. If you or your loved ones have been impacted, our hearts go out to you.
Patterns of extreme weather may be the new norm.
Or not.
It’s hard to say.
But either way, life on Planet Earth has long been fraught with dangers. There may be new, formidable risks to manage, but the truth is, risk itself is nothing new.
So before that ‘stuff’ hits the fan, I wanted to discuss some of the tried-and-true steps to help better prepare your financial affairs for when disaster strikes. A few of these preventive measures may help prevent future strife.
1.Organize Your Financial Information
Access to financial information can be critical after a disaster. It will be needed to help you work with your insurance companies, apply for disaster relief, or even just keep up with your everyday bills.
For easy access during a disaster, store important documents in either:
Incidentally, make sure you aren’t the only person who knows where the information is.
Ensure you have access to the following:
Tax statements, which you’ll need to apply for FEMA disaster assistance
Insurance policies
Proof of income, such as pay stubs
Housing payments
For a more detailed list, check out the financial preparedness checklists available from FEMA.
2. Have Cash on Hand for a Crisis
If you don’t already have an emergency savings account, consider starting one you can tap in a crisis. Aim to save three to six months’ worth of expenses. But also take note that in a disaster, it may be difficult—or even impossible—to take a quick trip to the bank. So keep a small amount of cash at home in case credit cards and local ATMs don’t work in an emergency and you need to buy food, fuel or other supplies.
3. Have the Right Insurance
Make sure you have appropriate homeowners or renters’ insurance.
A homeowner’s policy generally covers your dwelling and other structures, personal property, personal liability and medical protection. It also typically offers loss-of-use compensation if you need to relocate temporarily. Renters’ insurance should provide roughly the same coverage except for protection for structures, which is a landlord’s responsibility.
If you are a business owner, make sure to have business insurance to protect your business property and employees.
Importantly, neither homeowners nor business insurance covers flooding or earthquakes. If either is a possibility in your area, consider purchasing separate policies to cover each if such policies are available. (In some particularly risky areas, earthquake and flood damage coverage may be cost-prohibitive or otherwise unavailable.)
4. Inventory Your Property
This is something that requires some effort, and regular updating. Maintain a detailed inventory of your house to help you prove the value of items you own that may be lost or damaged during a disaster. An up-to-date inventory can help you determine how much insurance to purchase, and it can speed up the insurance claim process. It can also provide documentation needed to deduct losses on your tax return. Here are some available apps for you if you want to use your phone.
Take photos or videos to help you record your belongings and where appropriate, write down descriptions. For higher-priced items, add as much detail as you can. For instance, instead of simply listing “camera,” note the specific model number and the year you bought it.
Also, consider having especially valuable items appraised. There are often local services that can help you create audiovisual inventories or even apps that can help keep you organized. Store your inventory and appraisal documents with your other important financial documents.
What To Do After a Disaster
If disaster strikes, consider taking a bit of time to yourself before springing into action, if that’s possible. Grieving the losses you’ve endured is an important step in the recovery process, and acknowledging your emotions may take precedence over the financial harm done.
Once you’re ready, contact your insurance company to report the damage. Document and prepare a list of damaged items, and keep the items, if possible, until a claims adjuster has visited.
You’ll also want to hang on to receipts for expenses you incur, such as supplies, repairs and lodging if you can’t stay in your home. These expenses may be covered by insurance.
If you can’t stay at home, notify your utility providers and have them pause or discontinue services. You’ll still be on the hook to pay certain bills after a disaster. Prioritize paying your insurance premium and mortgage, which you must pay even if your house is damaged.
No one expects to be on the receiving end of a life-changing disaster. But being prepared can help ensure you can pick up the pieces faster. If you have any questions about putting together a disaster plan of your own, let me know.
As I always say, “Failing to plan is planning to fail”. Don’t let it happen to you!
Brandon
These storms – and the damage that ensued – inspired me to think. And write this article.
First it was Hurricane Helene. It moved inland from the Gulf, causing major damage from Florida all the way to the mountains of North Carolina.
For our family, it was personal as we were supposed to be visiting the west coast of FL but had to postpone our trip. The island was buried in sand. Our rental house suffered damage and the island needed weeks to re-open.
Once in western North Carolina, the “thousand-year storm” caused immense damage from flooding. We know people directly impacted by the flooding (they lost everything but the clothes on their back!). The pictures were heartbreaking.
And if that wasn’t already enough, another storm came to the scene.
While Floridians were catching their collective breath, Hurricane Milton swept through shortly after.
So much heartache for so many people. If you or your loved ones have been impacted, our hearts go out to you.
Patterns of extreme weather may be the new norm.
Or not.
It’s hard to say.
But either way, life on Planet Earth has long been fraught with dangers. There may be new, formidable risks to manage, but the truth is, risk itself is nothing new.
So before that ‘stuff’ hits the fan, I wanted to discuss some of the tried-and-true steps to help better prepare your financial affairs for when disaster strikes. A few of these preventive measures may help prevent future strife.
1.Organize Your Financial Information
Access to financial information can be critical after a disaster. It will be needed to help you work with your insurance companies, apply for disaster relief, or even just keep up with your everyday bills.
For easy access during a disaster, store important documents in either:
- a waterproof safe
- a safety deposit box
- in the cloud
Incidentally, make sure you aren’t the only person who knows where the information is.
Ensure you have access to the following:
Tax statements, which you’ll need to apply for FEMA disaster assistance
Insurance policies
Proof of income, such as pay stubs
Housing payments
For a more detailed list, check out the financial preparedness checklists available from FEMA.
2. Have Cash on Hand for a Crisis
If you don’t already have an emergency savings account, consider starting one you can tap in a crisis. Aim to save three to six months’ worth of expenses. But also take note that in a disaster, it may be difficult—or even impossible—to take a quick trip to the bank. So keep a small amount of cash at home in case credit cards and local ATMs don’t work in an emergency and you need to buy food, fuel or other supplies.
3. Have the Right Insurance
Make sure you have appropriate homeowners or renters’ insurance.
A homeowner’s policy generally covers your dwelling and other structures, personal property, personal liability and medical protection. It also typically offers loss-of-use compensation if you need to relocate temporarily. Renters’ insurance should provide roughly the same coverage except for protection for structures, which is a landlord’s responsibility.
If you are a business owner, make sure to have business insurance to protect your business property and employees.
Importantly, neither homeowners nor business insurance covers flooding or earthquakes. If either is a possibility in your area, consider purchasing separate policies to cover each if such policies are available. (In some particularly risky areas, earthquake and flood damage coverage may be cost-prohibitive or otherwise unavailable.)
4. Inventory Your Property
This is something that requires some effort, and regular updating. Maintain a detailed inventory of your house to help you prove the value of items you own that may be lost or damaged during a disaster. An up-to-date inventory can help you determine how much insurance to purchase, and it can speed up the insurance claim process. It can also provide documentation needed to deduct losses on your tax return. Here are some available apps for you if you want to use your phone.
Take photos or videos to help you record your belongings and where appropriate, write down descriptions. For higher-priced items, add as much detail as you can. For instance, instead of simply listing “camera,” note the specific model number and the year you bought it.
Also, consider having especially valuable items appraised. There are often local services that can help you create audiovisual inventories or even apps that can help keep you organized. Store your inventory and appraisal documents with your other important financial documents.
What To Do After a Disaster
If disaster strikes, consider taking a bit of time to yourself before springing into action, if that’s possible. Grieving the losses you’ve endured is an important step in the recovery process, and acknowledging your emotions may take precedence over the financial harm done.
Once you’re ready, contact your insurance company to report the damage. Document and prepare a list of damaged items, and keep the items, if possible, until a claims adjuster has visited.
You’ll also want to hang on to receipts for expenses you incur, such as supplies, repairs and lodging if you can’t stay in your home. These expenses may be covered by insurance.
If you can’t stay at home, notify your utility providers and have them pause or discontinue services. You’ll still be on the hook to pay certain bills after a disaster. Prioritize paying your insurance premium and mortgage, which you must pay even if your house is damaged.
No one expects to be on the receiving end of a life-changing disaster. But being prepared can help ensure you can pick up the pieces faster. If you have any questions about putting together a disaster plan of your own, let me know.
As I always say, “Failing to plan is planning to fail”. Don’t let it happen to you!
Brandon