Be Prepared for Disasters

As hurricane season swings into full gear on the East Coast and wildfires threaten parts of the West Coast, we are reminded that natural disasters often strike without warning. Being ready before your community and your home are affected is an important step when preparing for your financial future.

Here are a few tips on how to prepare in a financially sensible fashion.

• Keep all your records and financial statements in order. All the hard work you have been doing to save money and invest wisely need not be carried off by a twister. The best plan is to keep copies of important information in a safe deposit box or a secure, fireproof safe at home. Remember to include birth, death and marriage certificates; divorce or custody agreements; passports and copies of drivers’ licenses; deeds and contracts for property; bank account information; a copy of your will; and stock and bond certificates.

• Take a look at your insurance policies—home owners’, car and renter’s insurance—so you know what is covered. Are you in a flood zone? If so, flood insurance is a wise idea. Only renting your home? Renter’s insurance is also a wise investment to protect against fire and natural disasters. Know your policies and what your options are.

• Take pictures of your valuables as well as the contents of your attic, basement, garage and closets—these can come in handy if a disaster strikes or if you are robbed. Don’t forget your cars and any other belongings that could be damaged in a disaster. Make an inventory of what you have to combine with your photographs so you can have your items replaced by your insurance company with as little trouble as possible.

• Have some cash on hand. While you can’t invest and grow money if it isn’t in the bank, what else will you use during a disaster if banks and ATMs aren’t working? Keep enough money in a safe place for five days worth of expenses.