Prepare for the Enduring Extremes: A Financial Guide to Weather-Related Catastrophes
Preparing for the potential damage caused by extreme weather events, such as wildfires, tornadoes, hurricanes, and flooding, is crucial for homeowners, especially those residing in high-risk areas. While it's impossible to predict these events, taking proactive steps can speed up the recovery process.
Firstly, it's essential to have a go-bag filled with physical and virtual essentials. Loretta Worters, a spokesperson for the Insurance Information Institute, emphasizes the importance of having an administrative emergency kit. "Things can happen very quickly," she says. "You should have that go bag with all your important documents in an easy-to-remember, easy-to-access place."
Document Your Belongings
Visual documentation is key, especially in the face of disasters like wildfires. Consider taking photos or videos of your house and its contents using your cellphone, storing them in the cloud, and keeping a physical copy with your important papers or on a flash drive. Don't forget to include a current photo of your pet, in case separation happens. Immediately after an impact, take photos to better tell your before-and-after story to insurers.
Ensure Adequate Insurance Coverage
Having sufficient insurance coverage is vital to preserving your finances and mental health after a disaster. In 2023, there were nearly $80 billion in insured losses due to 89 natural catastrophes in the US, like wildfires and flooding. To protect yourself, periodically review and update your policies, ensuring they cover the most likely types of extreme weather in your area. If you can't find adequate coverage from private insurers, consider state-approved programs that offer event-specific coverage.
Compile Emergency Contacts
Prepare an emergency contact list, including insurance company, bank, investment, and retirement account contact details. If you have pets, include your vet's contact information and that of boarding facilities in your emergency kit. Don't forget FEMA's helpline number (800-621-3362) for registering for assistance after a disaster.
Other Essentials to Have at the Ready
Other essential documents to have at the ready for evacuation or sheltering include birth and marriage certificates, passports, tax returns, stock certificates, and your will. Keep cash or traveler's checks in your emergency kit for initial post-disaster expenses, even if you'll be reimbursed later.
Ensuring you're well-prepared with administrative emergency kits can speed up the repair and recovery process after a natural disaster, mitigating its impact on your finances, sanity, and well-being.
After documenting your belongings and possessing visual evidence, it's beneficial to ensure that your business information is also protected. Keep copies of your business license, insurance policies, and financial records in your emergency kit. This can aid in the quick recovery of your business operations following a disaster.
Furthermore, if your business is located in a high-risk area, consider adding business continuity plans to your emergency kit. These plans should outline how your business will function during and after a disaster, helping to minimize potential losses and maintain customer trust.
