Beyond insurance, there are other ways to ensure that you are financially prepared for disasters if you reside in an area of the world that is vulnerable to earthquakes, tornadoes, floods, blizzards, wildfires, or floods.
Among other recommendations, the Red Cross and the Federal Emergency Management Association advise households to keep cash on hand in case ATMs and online or electronic banking resources are unavailable, take pictures or videos of the rooms in your home and any valuable items, and gather important documents and contacts in a secure location.
These actions are referred to as preparation by Lisa Berdie, director of policy and research for the Financial Health Network, a group that works with underserved consumers. However, she emphasizes the necessity of funding initiatives aimed at reducing risks, minimizing financial harm, and lessening the severity of climate impacts.
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Recognizing that chronic stresses (like heat) and smaller-scale events—rather than just the big-picture events—have a significant financial impact on households is crucial, according to Berdie. Weatherizing homes and addressing health risks like mold and air quality that are exacerbated by climate hazards are some of the key items that households can think about (there)…
In the event of a disaster, you can take the following actions to improve your financial readiness and organization:
First, compile and assess
The first step is to gather critical documents, according to FEMA. These consist of social security cards, birth and marriage certificates, military service documents, and the identification tags, microchip, and immunization records of your pet.
According to FEMA, other documents that should be arranged include utility bills, housing payments, credit/debit card information, child support receipts, checking, savings, and retirement account numbers, insurance policies, paystubs, tax statements, and wills.
Records of vaccinations and allergies, copies of prescriptions, health insurance and pharmacy cards, and records of medical devices or equipment for people with disabilities are all examples of medical information that should be kept on hand.
Additionally, keep track of significant contacts like:
1. Representatives of the landlord or mortgage
2. Physicians, dentists, or other medical professionals
3. Agents for insurance
4. Officials in charge of social and disability services and military benefits
5. Providers of medical equipment or assistive technologies
6. Attorneys
7. Advisors for finances
8. Financial institutions
9. Relationships with neighbors, civic leaders, and places of worship
FEMA recommends that you keep vital phone numbers somewhere other than your cell phone.
Why is this information necessary?
You might be required to provide identification or evidence of income when applying for disaster aid. In the event that checks are destroyed or internet connectivity is unavailable, you could also need to re-establish financial accounts.
Maintaining or reestablishing contact with relatives and friends, applying for various types of help, and proving the identity of household members are all made easier with the help of additional records.
How else can I organize my financial life to prepare for disaster?
Request a copy of any of the aforementioned documents from the relevant business or organization if you do not have the original. Consider signing up for automatic benefits if you receive paper checks for any federal benefits, and ask for prepaid debit cards or direct deposit if you receive paper checks from your workplace.
Additionally, FEMA recommends printing or downloading statements for any automatic payments, including membership dues, utilities, rent or mortgage payments, and loan payments. You may also stay mobile in an emergency by downloading banking and bill payment apps to your phone.
As a kind of record keeping, it’s also a good idea to take pictures or videos of your home’s interiors and any valuables.
Store cash along with important documents
In the event that banks are closed or ATMs aren’t working, FEMA and the Red Cross encourage people to keep cash in a secure place with their necessary documents so they can use it for last-minute purchases. The quantity of money should be determined by your family’s fundamental necessities, such as food, medicine, and gas.
Make sure your information is up-to-date
Verify the accuracy and currentness of all insurance plans and financial documentation, including renters, homeowners, and auto insurance.
Store documents securely
All file copies, both electronic and paper, should be kept in secure places. Think about storing paper copies with a reliable friend or family member, in a bank safe deposit box, or in a waterproof and fireproof box or safe.
If you currently use a safe deposit box, FEMA recommends that you verify state regulations to determine who can and cannot enter the safe in the event that the owner passes away or becomes incapacitated.
Use a password-protected format on a flash drive or external hard drive to store electronic copies of vital papers. You may also store these copies in the waterproof, fireproof box.
Finally, update consistently
Regularly review and update your papers.
Updates are particularly crucial when major life events take place, like when you move, change your insurance, open or close bank accounts, get married or divorced, have a child, your child changes schools, you are planning for retirement, or someone in your household passes away.
The Charles Schwab Foundation provides funding to the Associated Press for informative and illuminating reporting aimed at enhancing financial literacy. Charles Schwab and Co. Inc. is not affiliated with the independent foundation. The AP bears full responsibility for its reporting.
