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Getting Organized:
Are You Prepared Financially for a Disaster?
As Katrina and Rita reminded us all, preparing for an incoming hurricane requires more than just buying flashlights, batteries and bottled water. Having your financial house in order will make dealing with catastrophe a little more manageable. And in a time of crisis, a little can mean a lot.
 Simple organization
Keep in mind you might not get any warning in the event of a disaster such as a fire, earthquake, flood or tornado. So, take a moment right now and imagine your house being totally destroyed. What documents would you lose? Passport? Social security card? Birth certificate? Insurance policies? What heirlooms or valuables would you lose? Keep your critical financial documents in a safe deposit box at the bank or at least in a fire-proof box in your home. Also keep photographs or a video tape and an appraisal of your valuables in the safe deposit box or with a relative outside the home. These fairly simple steps will go a long way toward retrieving your valuables and preserving critical paperwork.
Proper insurance
Run down this checklist on your homeowner or renters insurance policy.
- Is the property coverage adequate to cover all your furniture and possessions?
- Is the building coverage adequate to rebuild from scratch?
- Are you protected for flood and windstorm?
- Is it paid up?
Emergency fund
Most emergency funds are spent fixing the car or furnace — but when disaster strikes there's nothing more aptly named than an emergency fund. You might be properly insured, but you don't want to have to wait for a claims agent to have some "walking around" money. Also, if an area-wide disaster strikes your place of employment, you could be out of work for awhile. Having $5,000 in the bank means you can stay in a hotel for a few days and gives you a few weeks to find a new job.
Set things up to run without you
Wherever possible, set up bill paying to be automatic. That way, if your life gets disheveled your bills will still get paid protecting your credit and giving you one less thing to worry about. Also, if you get set up for online banking and establish your credit card and other accounts online, you'll be able to take care of things easier if you have to move away while your home is being repaired |
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