The FDIC recently highlighted a crucial but often neglected aspect of disaster readiness – financial preparedness. When thinking about and preparing for disasters many people focus on the essentials like water, food, and flashlights. The FDIC reminds us that having access to cash and key financial services is equally critical when disaster strikes.
Key Financial Steps to Include in Your Financial Disaster Plan
The article emphasizes practical steps to ensure your finances remain accessible and your recovery stays on track:
- Periodically review your insurance. Confirm that you have adequate levels of coverage. Also verify that the coverage you have covers disasters you are susceptible to.
- Have an emergency fund. While insurance will hopefully cover any losses you incur, the process will likely take some time. Having an emergency fund helps you cover immediate expenses.
- Keep track of your important documents. Store documents like account information, insurance policies, bank contact details, and identification in waterproof, fireproof containers or digitally in secure cloud storage.
- Know how to access cash and services. Plan backup methods to get money or reach services if your primary bank or system is temporarily unavailable. It’s also a good idea to have a small amount of cash on hand in the event of a disruption.
- Be aware of fraud and scams. Sadly, fraudsters see disasters as an opportunity to steal information and/or money, so be wary of unsolicited offers of help or assistance. Also make sure you do your research before making any charitable donations.
Disasters disrupt more than physical structures. They often interrupt banking services, delay payments, and complicate recovery. By proactively planning for financial continuity, you better protect your household from additional stress and setbacks when emergencies occur.