September is National Preparedness Month, an annual observance across the U.S. that encourages individuals, families, and communities to be proactive in preparing for emergencies. Disasters take many forms, but all have the same impact – unexpected and sometimes costly disruptions in your day-to-day life. Emergencies are typically unpredictable, but you can help your family be more resilient by being prepared. Check out these tips for being financially prepared, should a disaster strike.

Protect Important Documents and Valuables

Once the immediate danger passes, important documents and records will be essential for kickstarting your recovery. Every household should take inventory of these items in advance and evaluate how they can protect them.

The Federal Emergency Management Agency (FEMA) breaks these documents and records into 5 main categories. Review their checklist for a full list of documents that might apply to your household and how to safeguard them.

1. Household Identification: These are documents you would need to identify yourself and members of your household.

– Vital records pertaining to births, marriage, divorce, and adoption papers.

– Personal identification, such as a passport, driver’s license, green card, and Social Security card.

– Military service records.

– Pet ownership papers and/or identification tags.

2. Financial and Legal Identification: These documents would help if your home, vehicle, or income was impacted by the disaster.

– Housing documents, such as lease/rental agreement, mortgage information, and deed.

– Insurance policies, such as homeowner’s or renter’s, life, and auto.

– Vehicle documents, such as loan information, VIN, and registration.

– Financial accounts.

– Tax statements.

3. Medical Information:

– Health/dental insurance.

– Physician information, in case medical care is needed.

– List of medications, immunizations, allergies, prescriptions, medical equipment/devices.

4. Emergency or Hotline Contact Information: Employers/supervisors, schools, houses of worship, social service providers, Homeowner’s Associations, and home repair services.
5. Valuables and Important Personal Items: Priceless personal mementos like family photos and keepsakes, and possessions with monetary value (jewelry and art).

Once you’ve gathered your important documents and records, it’s important to store them in safe locations. Consider storing paper copies in a fireproof/waterproof box or safe, and electronic documents in a password-protected format or on a removable flash or hard drive (stored safely so it’s protected from water or fire damage).

Check out FEMA’s Emergency Financial First Aid Kit for more detailed checklists and guidance on collecting and safeguarding your household’s important information.

Review Insurance Policies and Financial Paperwork

It’s important to periodically review insurance policies and other financial paperwork to ensure it is current and accurate. For insurance policies, this can help you understand what may be covered under your policy, identify any gaps in coverage, and simply confirm you have the necessary information needed to quickly process any claims in the event of an emergency.

Equally as important – reviewing these documents can help you identify any outdated information, which can affect your protection during an emergency.

Consider an Emergency Fund to Use in a Crisis

An emergency fund is a dedicated savings account to cover urgent expenses that arise from unexpected situations – anything from job loss to a natural disaster. A natural disaster like a hurricane, flood, or earthquake, can cause unforeseen expenses such as short-term lodging, home repairs, and even daily essentials. An emergency fund can help you maintain stability and avoid turning to high-interest debt. It can also give you peace of mind – reducing stress and uncertainty during a time where the focus is on recovery.

Additionally, it’s important to keep a small amount of cash at home in case of a disaster, as ATMs and credit cards may not work in the event of extended power outages – should you need to purchase supplies, fuel, or food.

Consider Electronic Options

Certain disasters can cause disruptions to mail service that may last days or weeks. If you rely on income or federal benefits – consider switching to electronic payments to continue receiving your income as expected. This can also help you meet your financial obligations, if you normally make any utility or loan payments through regular mail.

Ensure that your online and mobile banking services are set up – provided you have power or WiFi and still have access to those services. This can help you maintain financial access when traditional banking services may be inaccessible or unavailable.

While emergencies and disasters are unpredictable, it’s important to expect the unexpected. Financial preparedness doesn’t have to be costly – but being unprepared for a disaster can be.

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