Hurricane Season - Financial Tips to Weather the Storm

It may be hard to believe that hurricane season is only half over. There is no better time than the present for Louisiana, Mississippi, Texas, Alabama, Florida and East Coast residents to review their personal financial preparedness plan.

Many residents learned the hard way during recent hurricanes that financial planning can be the difference between peace of mind and heartache. A good financial plan for disasters such as hurricanes should include easy access to funds, protection of personal financial information and communication with other family members.

Here are some tips you should consider when developing a hurricane financial plan:

1. Make backup copies of all of your records. Make copies of
   important records and documents and safely secure them in
   another location. Items should include photos of everything
   you own, credit card numbers, insurance policies, financial
   records, deeds and titles, wills and trusts, Social Security
   cards, prescriptions and medical records, emergency contact
   lists and spare keys.
2. Maintain a one-page key financial contacts list. These are
   phone numbers of companies you would call to alert them of
   your special circumstances and discuss your options. Include
   phone and account numbers for your bank, mortgage, credit
   card, investment and insurance companies.
3. Create a "grab and go" fire and waterproof box with important
   financial documents. Include recent checking, savings, credit
   card and investment account statements; your key financial
   contacts list; federal and state tax returns; mortgage and
   insurance information; your social security card; and a supply
   of cash.
4. Ensure you have access to cash.
5. Carry your ATM or debit card with you at all times.
6. Build a "safety balance" in your checking or savings
   account that can be tapped at times of crisis, and
   consider an "emergency" line of credit (like a home equity
   line of credit).
7. Consider overdraft protection, linking your checking
   account to a savings account or credit card.
8. Use direct deposit of payroll so your pay is automatically
   deposited into your checking account.
9. And since there may be no power after a disaster, stash a
   sufficient amount of cash, traveler's checks, a prepaid card and a roll
   of quarters (to use in pay phones) in a disaster supplies
   kit that you keep at home and can take with you.
10. Understand your expenses and create a budget. Know how much
    you spend each month on your rent or mortgage, food, gas,
    medicine, and other basic expenses. This information will be
    helpful if you are receiving financial assistance from a
    nonprofit or government agency.
11. Review disaster insurance policies. Don't feel overly secure
    simply because you have insurance. Review plans and ask your
    insurance providers questions about:
    a) Replacement of home or property. Your mortgage could
    exceed the value assigned to your property. Find out the
    maximum value of "full replacement" insurance, and
    consider a guaranteed replacement cost policy.
    b) Home contents. Renters and homeowners can insure their
    belongings. Standard policies are for actual cash value,
    not replacement cost.
    c) Watch out for deductibles, restrictions or omissions on
    floods, hurricanes and other "natural disasters."
    d) Clarify what "living expenses" are if you need to stay in
    a motel for an extended period of time.
    e) Consider a rider policy if your homeowners policy doesn't
    cover computers, home offices, jewelry, artwork or other
    expensive items.