Natural disasters can strike
unexpectedly, wreaking havoc on homes, communities, and finances. We have all
read or seen the recent coverage of the devastating fires on Maui and the wind
and flooding from Hurricanes Idalia and Hilary. And while you can't predict
when or where these events will occur, you can take proactive steps to prepare
your family and finances for the unexpected. With September 10th
being the peak of the Atlantic hurricane season and fires continuing to rage in
the West, it would be wise to make sure you are prepared now before disaster
strikes.
Insurance Coverage
One of the first steps to disaster preparedness
is ensuring you have adequate insurance coverage. Review your homeowner's, renters,
and auto insurance policies to understand the extent of your coverage for
natural disasters. Consider additional coverage if you live in an area prone to
specific hazards like floods, earthquakes, or wildfires. It's crucial to
understand your policy deductibles, coverage limits, and any exclusions. It
would also be wise to review your life and disability insurance in the event
you were unable to evacuate and become injured, or worse.
Emergency Cash
Maintaining an emergency fund is one
of the most important, yet often neglected steps in building a financial plan.
Set aside three to six months' worth of living expenses in a readily accessible
account. This reserve can help you cover immediate needs such as temporary
housing, food, and transportation in the aftermath of a disaster without
tapping into your investments or retirement savings. You might also consider
keeping some cash handy in a safe at home in the event the power is out, and
you are unable to use your debit card.
Digital Copies and Safe Storage
Scan and save a digital copy of any
important documents including insurance policies, ID, financial account information,
wills, deeds, and titles. Store digital copies in a secure, cloud-based service
like the eMoney Vault and keep any physical copies in a waterproof, fireproof
container. This ensures that vital information is accessible even if your
physical documents are damaged in a disaster and could save you weeks of
headaches as you begin to rebuild your life. Consider taking pictures of your
major household appliances such as TV's, computers, and furniture, or take a
walk-through video of your home. You want as much proof as possible of the
expensive items you owned when filing a claim with the insurance company.
Communication Plan
Most importantly, establish a
communication and evacuation plan with family members and close friends or
neighbors. It's possible to rebuild homes and replace things, but we cannot
replace the people and loved ones in our lives. Ensure everyone knows where to
go for safety and how to contact each other in the event of a disaster. Keep in
mind that you may not be able to use a cell phone in the immediate aftermath of
a disaster, so you may want to establish a meeting place like a nearby friend's
house where you can go to reunite with loved ones. Keep your plan simple and
easy to remember as the aftermath of a disaster can often be chaotic and
confusing.
While no one likes to think that disaster will strike them, the truth is that anyone can be a victim of unexpected and devastating natural disasters. Whether you live in "tornado alley" or "hurricane country", you are exposed to crippling ice storms or fast-moving wildfires, no one can truly be "weather proofed." However, if you follow the simple tips and advice above then you can be assured that your finances will be secure and the road to recovery will be a short one.
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!
