Preparing Your Finances Before Disaster Strikes
Preparing Your Finances Before Disaster Strikes
September 26, 2005
The devastation wreaked by Hurricane Katrina upon the Gulf Coast highlighted one simple and disturbing fact: most Americans are not prepared for a large-scale disaster which could displace them from their homes, render them unemployed, and give them no choice but to rebuild their lives from scratch. After experiencing the difficult 2004 hurricane season in Florida and witnessing the unparalleled destruction at the hand of Hurricane Katrina, it is critical that Americans take proactive measures to protect themselves and their families from financial ruin in the event of such disasters.
There are several steps that individuals can take to protect their personal and family finances. It is important to make sure that you keep copies of important financial documents and agreements in places where you will be able to access them once a disaster strikes. These would include, but are not limited to, the following:
· Insurance policies (homeowners, automobile, health, life)
· Copy of your mortgage/deed to your home
· Copies of identity documents such as birth certificates, Social Security cards, passports, immigration papers
· Copies of credit cards (numbers and contact information)
· Individual retirement account (IRA) statements
· Savings/checking account information
· Tax returns
· Investment statements (mutual funds, stocks, securities, annuities)
If possible, seek a trusted family member or friend in another geographical area to maintain a copy of your records in a safe place. It also is important to keep copies of this information in your family disaster kits so that you are able to take it with you should you be forced to evacuate. Maintaining a safe deposit box always is a sound financial idea, although it is important to remember that, depending on the location of your financial institution, you may have difficulty accessing it during emergency circumstances.
While it probably isn't feasible to maintain multiple copies of every financial document in your possession, it is important to know how to contact your insurance companies, creditors, and financial institutions in the event of an emergency. In many cases, they will be able to help you reproduce your financial records in the event you lose them.
For detailed information and suggestions on how you can plan financially for disasters, please visit the following website: www.redcross.org/services/disaster/beprepared. In addition to providing suggestion for preparing financially for a disaster, this website includes information on establishing a family disaster plan, putting together a disaster kit, and caring for pets during emergency situations.
Failing to plan is planning to fail. I urge you to take the steps now to prepare financially so that you will be able to take control when disaster occurs.
http://www.house.gov/apps/list/speech/fl09_bilirakis/wkly_finprepare.html