Disasters come in many shapes and sizes and when we least expect them. They can be natural or man-made. Regardless of the type of disaster, you can be assured it will cost money. September is National Preparedness Month. In addition to having an emergency plan in place and a preparedness kit with enough essential supplies for at least three days, it’s also a good time to think about how you will pay your bills if disaster strikes. We live in a nearly cashless world, but cash is still king during a disaster, especially if computer systems are down.
Disaster assistance is not guaranteed and may not cover all damages from a disaster, so it’s important to take steps to become resilient as individuals. You can start by completing a Financial First Aid Kit. What’s a Financial First Aid Kit you ask? A Financial First Aid Kit includes the following:
- Gathering important financial and personal, household and insurance information
- Saving some cash in an emergency savings account
- Keeping enough cash on hand for at least three-days’ worth of expenses
- Obtaining property, renters, health and life insurance if you don’t have them and review existing polices to ensure you have adequate coverage
- Considering flood insurance; most traditional homeowners insurance does not include coverage for floods
If you receive a monthly income via check you may want to consider receiving it electronically. I can tell you first hand this is an excellent idea. During the Ice Storm of 1998, I went to the bank to deposit my paycheck. It was later subtracted from my account and I was told the truck carrying the deposits was not able to get to the main bank because of the road conditions. I had to wait several days for my paycheck.
Knowing where all your important documents are located is important as well. If you lost everything in a disaster, would you know how to access bank accounts, medical records, and insurance policies to file a claim? Would you have proof of identification for you and your family members? If a federal disaster is declared, you would need a social security card, financial and legal documentation to apply for FEMA disaster assistance. A full list of documents you should have in your Financial First Aid Kit can be found at https://www.ready.gov/financial-preparedness.
Once you’ve gathered your important documents you should store them in a safety deposit box or even scan them and save them online or on an external drive stored in a safe place. That way, you can access them when you need them and they can’t be destroyed if your home or business is destroyed.
To help further speed up the recovery process, you should find out what resources are available in your community such as shelters, food banks, and other local assistance. For more information on these resources, contact the Franklin County Emergency Management Agency at (207) 778-5892.
Disasters don’t plan ahead. You can.
