NEW YORK (AP) — If you live in a part of the world prone to wildfires, floods, blizzards, tornadoes, or earthquakes, there are ways you can make sure you're financially prepared for disaster, beyond insurance.
The Federal Emergency Management Association and the Red Cross advise that households gather important documents and contacts in a safe place, take photographs or record a video of the rooms in your home and any valuable belongings, and to have cash on hand, in case ATMs and electronic or online banking resources aren’t available, among other guidance.
Lisa Berdie, director of policy and research for the Financial Health Network, an organization that focuses on underserved consumers, refers to these steps as “preparedness,” but stresses the need for “investments in efforts to lessen the severity of climate impacts, reduce risks, and minimize financial harm.”
“Key here is recognizing that it is not just the headline-grabbing events, but smaller-scale events and chronic stressors (for example, heat) that have dramatic financial consequences for households,” Berdie said. “Some of the action steps that households can consider (there)... include weatherizing homes and addressing health hazards that are worsened by climate hazards, like mold and air quality.”
Here's what you can do to be more financially prepared and organized in case of disaster:
First, compile and assess
According to FEMA, the first thing to do is compile important documents. These include: birth and marriage certificates, social security cards, military service records and your pet’s ID tags, microchip and vaccination records.
Other documents to have organized include: housing payments, utility bills, credit/debit card information, receipts from child support, checking, savings, and retirement account numbers, insurance policies, paystubs, tax statements, and wills, according to FEMA.
Medical information to have on hand includes: health insurance and pharmacy cards, records of immunizations and allergies, copies of prescriptions, and records of medical devices or equipment for disabilities.
Also make records of important contacts, such as:
“Make sure you store important phone numbers somewhere besides just your cell phone,” FEMA advises.
Why is this information necessary?
When you apply for disaster assistance, you may need to show proof of ID or income. You may also need to re-establish financial accounts if checks are destroyed or if online access is down.
Other records can help you prove the identity of household members, maintain or re-establish contact with family and friends, maintain contact with employers, and apply for other forms of assistance.