Prepare for the Unexpected: A Financial Safety Net for Disaster-Prone Areas
Living in areas prone to natural disasters can be unsettling, but being financially prepared can make all the difference. Beyond insurance, there are steps you can take to ensure your financial well-being in the face of wildfires, floods, blizzards, tornadoes, or earthquakes.
Gather Essential Documents and Contacts
The Federal Emergency Management Association and the Red Cross recommend compiling important documents and contacts in a safe place. This includes:
- Birth and marriage certificates
- Social security cards
- Military service records
- Pet identification and vaccination records
- Housing payments and utility bills
- Credit/debit card information
- Insurance policies
- Paystubs and tax statements
- Wills
Medical Information and Important Contacts
Don’t forget to gather medical information, such as:
- Health insurance and pharmacy cards
- Records of immunizations and allergies
- Copies of prescriptions
- Records of medical devices or equipment for disabilities
Store important phone numbers securely, beyond just your cell phone, to maintain contact with family, friends, and employers.
Organizing Your Financial Life
If you don’t have original documents, request copies from the appropriate companies or agencies. Consider enrolling in automatic benefits and direct deposit to minimize reliance on paper checks. Print or download statements for automatic bill payments, and download banking and bill payment apps for easy access.
Cash and Record Keeping
Store cash with your important documents to cover emergency expenses when ATMs and banks are unavailable. The amount should be based on your family’s basic needs, including gas, food, and medications. Photograph or record a video of your home and valuable belongings as a form of record keeping.
Review and Update Your Information
Regularly review insurance policies and financial paperwork to ensure accuracy and currency. Store documents securely in fireproof and waterproof boxes, safe deposit boxes, or with trusted friends or relatives. Use password-protected formats for electronic copies.
Stay Up-to-Date
Revisit and update your documents regularly, especially during significant life changes, such as insurance changes, moves, or changes in marital status. By taking these steps, you can create a financial safety net to weather any disaster that comes your way.
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