Protecting Yourself—and Your Finances—in Disasters

Indeed, this latest string of disasters comes as a harsh reminder about the life-altering power of natural disasters. But even far outside the disaster zones, millions of people have likely stopped to consider, “What if that happened to me?”

While disaster preparation is certainly a process most hope they’ll never need to experience firsthand, it’s nonetheless important to know how best to protect your assets and keep your financial house in order if ever disaster does strike. That’s why what follows is an easy-to-follow framework for doing precisely that.

Pre-Disaster Financial Precautions

It’s a helpless, almost sickening feeling when your home and family is in the path of an oncoming disaster like a hurricane or wildfire. But considering that some natural disasters, like earthquakes and tornadoes, occur with little or no advance warning, it’s all the more clear that some, perhaps even all of the most crucial “preparations” should be 100% proactive in nature. 

So, whether you’re a resident of the Atlantic or Gulf Coast where hurricanes may be the primary concern, or living near fault lines or in “Tornado Alley,” consider readying the following precautions so you’ll be better prepared in case of emergency or threat of an impending disaster.

Steps to Prepare Financially for a Natural Disaster

• Have Cash on Hand: If possible, get to the ATM; better yet, keep $100-$500 locked away safely in your home so you can grab it pre- or post-disaster. In many cases, utilities will be adversely affected, meaning retailers and other businesses that may be open will be requiring cash only since they’ll be unable to process electronic payments
• Take “Before” Pictures/Videos: Make a walkthrough video or take photos of your property, home and contents as they were pre-disaster. Be sure to document the brands, age and (approximate) purchase prices of appliances, furniture and other valuable or big-ticket items. Store the video and/or photos on your phone and save copies to a flash drive for safe keeping. This sort of digital evidence can really help support and expedite any disaster-related insurance claims.
• Download Banking, Insurance & FEMA Apps: Provided your bank(s) and insurance provider(s) have mobile apps, ensure that any mobile devices you or your family use and will take with you are pre-loaded with the latest versions so you can initiate any necessary claims and monitor your finances in the aftermath of a disaster. Also, download the Federal Emergency Management Agency (FEMA) mobile app to foster more ready access to government funding and resources in the event you’re impacted by a federally declared natural disaster.

Important Documentation to Take During Evacuation

The decision of whether to “shelter in place” or evacuate the path of natural disasters like hurricanes and wildfires can be especially difficult. With others, like earthquakes and tornadoes for example, it’s not really a choice since there’s no advance warning. In any case, when facing imminent danger it’s even harder (if not outright impossible) to remember all of the important papers, documentation and belongings that should stay with you in the event of evacuation.

So, whether you’re loading up your vehicle or just scrambling to the nearest tornado shelter, here are ten (10) things that should be in your “safe” box in order to protect yourself and your financial interests amidst the threat of natural disaster:

1. Insurance Policies: Keep at least a copy of your homeowners, renters and/or auto policy declarations pages with you so you’ll have the policy number(s) and important phone numbers in the event you need to initiate a claim(s).
2. Deed/Title Documents: Be sure to protect the deed to your home and property, as well as any paper titles (if applicable) for all vehicles. This is important in case of losses or if you have to prove ownership of these assets when returning home following evacuation.
3. Credit Card Statement(s): Following a natural disaster, you may wish to call your credit card company/companies and request that any payments be deferred until a later date and late fees waived given the adverse circumstances.
4. Mortgage Lender Info: Call your mortgage lender following a disaster, as many offer borrowers impacted by natural disasters alternative payment options like forbearance (deferred payment), while some may even extend the term of your loan in order to help preserve your access to short-term capital and provide a suitable window for recovery.
5. Utility Bills: It may be necessary to contact your utility providers following a natural disaster for such reasons as to delay or defer payment, report service outages and/or correct erroneous billing statements that don’t reflect time spent without service.
6. ID/Passports: Maintaining control over important documentation like driver’s licenses, passports, military IDs and other forms of identification can protect against fraud and identity theft, not to mention save plenty of hassle in the aftermath of a disaster when local and federal government offices may be closed or overwhelmed by high-volume requests.
7. Birth Certificates/Social Security Cards: Ensure that vital documentation like birth certificates and social security cards are safely contained (in fire and waterproof protection, if possible) and that they stay in your possession at all times as these are particularly difficult to replace in the aftermath of a natural disaster.
8. Insurance Cards: If not the originals, at least have copies of all insurance, medical and/or prescription ID cards for each family member in your “safe” box in the event that some form of emergency medical care is needed following a disaster.
9. Medical Records & List of Prescriptions: Also in the event of emergency medical treatment, have any copies of important medical records and a list of prescriptions—for both humans and pets—on hand so first responders and medical personnel can provide safer, more effective treatment.
10. Contact List: In the age of smart phones, many don’t remember the phone numbers for friends and loved ones anymore. That’s why having them on paper can help you reach out following a disaster in the event that your phone is lost, broken or the battery dies and you’re calling from a public or borrowed phone.

Quite often, amidst crisis and impending disaster, we’re so likely to fixate on preserving valuables like jewelry as well as irreplaceable items like family heirlooms and photos, that the critical financial and personal documentation mentioned above is easily forgotten. Creating a “safe” box right now, before you really need it, ensures that the aforementioned information and key numbers and documents are aggregated and stored safely and are easily accessible in case of emergency. After all, it’s much easier to simply grab your pre-packed “safe” box on your way out than to try to hurriedly pack it while under extreme duress.

Here’s sincerely hoping that you never need to put this knowledge into actual practice. But if ever you do face the threat of natural disaster, may you now have the direction and tools you’ll need to ensure your survival as well as empower your personal and financial recovery.