5 Ways To Prepare For A Natural Disaster
How do I make sure I'm financially prepared for a natural disaster, so I don't become broke or bankrupt?
I’ve been honored to serve communities devastated by natural disasters, the worse being in Mississippi after Hurricane Katrina. So many people could not access benefits because they lacked the verification documentation needed to apply for assistance. The biggest lesson I learned was the importance of making sure you financially prepare for natural disasters with an Emergency Disaster Plan.
An Emergency Disaster Plan will have the vital information needed to begin the process of getting your life back after a natural disaster. FEMA’s Emergency Financial Disaster First Aid Kit
Take the first steps to financially prepare for a natural disaster by:
Reviewing Your Home Owner's Insurance Policy
Checking your Auto Insurance Policy
Creating a Personal Property Inventory list
Gathering Your Vital Records
Asking your creditors' about their natural disaster policies and programs
1. Review Your Home Owner's Insurance Policy
Go to Redcross’s Common Disasters Across the U.S. website to learn about your area's most common natural disasters. Contact your homeowner’s insurance provider to find out:
What’s covered, and what are the limits of the coverage?
A good rule of thumb is that the more likely a natural disaster will happen in your area, the more restrictive your insurance coverage is. In general, homeowner’s insurance (check with your insurance carrier, coverage can vary ) covers damages caused by hurricanes, tornados, and snowstorms as well as damages caused by:
Fire and Smoke
Windstorms
Hail
Lightning
Falling Objects
The weight of ice, snow, sleet, and freezing plumbing
Limited Personal Property coverage
Limited Additional Living Expenses (ALE)
What’s not covered?
Most homeowner policies do not cover:
Sewer Backups- (not a natural disaster, but essential to know)
Your deductible- the amount you have to pay out-of-pocket before your homeowner’s insurance starts paying.
Identify any gaps in your insurance coverage and decide what to do (crossing your fingers and hoping nothing happens is not an option; you need a plan):
Upgrade your existing insurance for additional coverage.
Keep your insurance deductible amount if you have enough saved to cover the amount, or consider lowering your deductible to an amount you can afford to pay.
Shop around for a new homeowner policy that provides more coverage at lower costs.
Save enough to cover uninsured disasters.
Include a summary of your homeowner’s coverage in your binder.
2. Check Your Auto Insurance Coverage
If you are responsible for an auto accident, your auto liability insurance typically pays (after your deductible) the other driver’s property damages and/or injuries up to a certain amount. Personal injuries and damages to your vehicle, including damages due to natural disasters, are not typically covered. Contact your homeowner’s insurance policy to ask about instances where your homeowner's policy may provide some coverage for limited auto damages.
Comprehensive coverage protects your car from damages caused by natural disasters and the “Acts of God.” These are damages caused by circumstances out of the driver’s control. Like homeowner insurance, coverage can vary AND change. Contact your provider to find out about any restrictions or limits to your coverage due to:
Include a summary of your auto insurance coverage in your binder.
3. Create A Personal Property Inventory
Annually take pictures of the interior and exterior of your home and vehicle. If a natural disaster impacts you, your photographs may be the only proof you have of your property’s pre-disaster condition and the items you claim.
Ensure you update your homeowner’s insurance carrier of upgrades and additions to ensure you are adequately covered.
Include a picture of your items and their make, model, and serial numbers. If I have the option, I typically have my receipts emailed to store them electronically.
In your binder, create a "Personal Property Inventory" section and store your information in this section.
4. Gather Your Vital Records
Financially prepare for a natural disaster using FEMA’s Safeguard Critical Documents and Valuables
✎ EditSign
checklist to gather the documents you will need during a disaster. These are documents to identify you and family members, relationships, and status, such as:
Photo Ids
Military Records
Birth Certificates/Naturalization Certificates
Marriage Certificate
Contact Info- family, your HR department’s info, etc.
Financial Documents
5. Ask Your Creditors/Lenders About Their Natural Disaster Financial Assistance Programs
Ask your creditors about the following:
Housing payment assistance programs
Insurance premium payment options when you cannot pay due to a natural disaster
Ask how will your medical insurance premiums be covered without a paycheck
Car lender and credit card issuer financial hardship programs
Next Steps To Financially Prepare For a Natural Disaster
Commit to tackling one section a week until you have completed all five sections.
Create a “Natural Disaster Review” Google reminder every September and commit to an annual disaster preparedness review.
Double-check your coverage if your area is under a special warning for a natural disaster.
Taking these steps now will help you get your life back together if you experience a natural disaster.
