Disaster preparedness: Don’t forget your finances

No matter where you call home in the U.S., severe weather is likely a threat from time to time. It’s a good idea to be prepared for an emergency evacuation from your home whether due to a hurricane, a tornado, wildfire or massive precipitation.

When people list items they would quickly grab in such an event, they often include their phones, their pets and a few sentimental pieces. But what about more critical information?

If something happens to your home and belongings, you’ll need to be able to access your financial accounts and information on the go. If you’re dealing with a natural disaster, your phone network and internet connection may be unavailable for days or weeks afterward. That can mean banking networks, including ATMs and card processing systems, may go down.

It may be difficult to imagine, but it’s important to consider. Luckily, a little preparation can go a long way when it comes to emergency finances. The Federal Emergency Management Agency (FEMA) has a helpful Emergency Financial First Aid Kit that can get you started. We’ve also outlined our top 10 tips below.

10 tips to prepare financially for an emergency

1. Understand your insurance policies and how to get in touch with your agent. Keep copies of your policies (homeowners/renters, auto, life, funeral, etc.) and companies’ contact information in a waterproof bag that you can quickly grab (aka a “go bag”).
2. Consider changing your income from checks to direct deposit. During an emergency, it is much easier to receive your payments electronically than to have to deal with paper checks. For example, you may be unable to retrieve the check due to closed roads or a lack of transportation. Or cashing the check may be impossible because the banks are closed and phone networks are down.
3. Keep copies of your IDs. In your waterproof bag, you should also have photocopies of your household IDs, which can include driver’s licenses, passports, birth certificates, Social Security cards and pet tags/licenses, as well as recent photos of family members and a few proofs of address. These will come in handy if you or someone in your family doesn’t have the originals.
4. Have cash. If electricity is gone or credit card networks are unavailable in a disaster area, cash may be the only payment option for food, gas and shelter. It’s a good idea to have a small amount of cash ready in case ATMs are not an option.
5. Document proof of government benefits. If you have Social Security income, Medicare, veteran’s benefits or grants, be sure you have copies of that paperwork in your waterproof bag as well.
6. Keep contact info for your mortgage company, landlord and creditors. Your bills will still be due, even after an emergency. You’ll need to reach out to your creditors to discuss your options and ensure that any missed payments do not negatively affect your credit score.
7. Have tax return info in your emergency bag. This may sound surprising, but having this information is a big help if you are in a situation where you can apply for aid from FEMA. This and other financial info are required to complete those applications.
8. Add ease to the worst-case scenarios. Here, we’re talking about paperwork concerning your estate, will, living will, trust(s) and power(s) of attorney. You can opt to keep copies in your “go bag,” or else the contact information of the attorney(s) who have that paperwork. Make sure everyone in your household is informed that these items exist.
9. Be diligent about scammers. Unfortunately, scams typically increase after natural disasters. People posing as government or aid workers may call or text you, offering phony payments. Be cautious about sharing your identity, bank account numbers, answers to security questions, passwords and other sensitive information with people you cannot verify.
10. Update your “go bag” annually. Any time you make a change to your financials or family, make sure you update the information in your emergency bag. Don’t forget these commonly updated items:
    • Tax returns
    • IDs and passports
    • Credit and debit cards
    • Photos of family members and pets
    • Insurance policies
    • Changes to your vehicles
    • Lines of credit opened or closed in the last year

Emergencies are unpredictable, but your financial preparedness doesn’t have to be. By taking the time now to organize your essential documents, understand your resources, and build a solid “go bag,” you’re giving yourself and your loved ones one less thing to worry about when it matters most.