Surviving the storm: Financial preparedness for natural disasters.

1. Assemble an Emergency Financial Safety Kit.
   When a disaster is declared, FEMA provides financial help and services to people and families who qualify and have had damage to their home, car, or other belongings. FEMA suggests putting together a financial first-aid kit that's kept safe and easy to get to. This kit should include copies of important personal, money-related, and legal papers. Consider using Commerce Bank’s Commerce ID Recover service for safely storing these documents digitally in the cloud.


2. Budget Review and Emergency Fund.
   To prepare financially for a natural disaster, start by reviewing your budget to understand your income and expenses. This will help you determine how unexpected costs might impact your finances. Expenses like temporary housing, rental cars, and laundry are ones to consider that can accumulate quickly and may not all be covered by insurance. Save receipts for disaster-related expenses as they may be necessary for insurance claims or tax deductions.

Consider establishing a supply kit and emergency savings fund to cover expenses like repairs, temporary lodging, or insurance deductibles. Having cash on hand is crucial in case electronic payments or ATMs are inaccessible during emergencies. Register for online and mobile banking services to manage your accounts conveniently from anywhere during crises.

3. Document your possessions.
   Make an inventory list of your assets, including items like patio furniture and vehicles for outdoor areas, as well as appliances, electronics, and clothing for indoor spaces. Capture photos or videos of your belongings to facilitate any claims for damage or loss. It's important to check your home, renters, life, auto, and health insurance policies now to make sure they're current and cover everything you need. Understand what each policy covers, what it doesn't cover, the most they'll pay, what you must pay first (called a deductible), and how to make a claim if something happens. Taking these steps now will help you be ready for any surprises that might come up.


4. Review and update your Estate Planning Documents.
   Ensure that your will, trusts, and powers of attorney are current and accurately reflect your current wishes. Consider designating a temporary guardian for minor children in case of emergency situations. You should also review the beneficiary designations on your accounts and insurance policies to confirm they are up to date.


5. Watch out for disaster relief scams.
   Beware of scams targeting natural disaster victims during recovery, including fraudulent contractors and fake insurance representatives demanding upfront payments. Federal and local disaster personnel do not seek or receive money. Be cautious of anyone offering a disaster grant in exchange for payment. The Consumer Financial Protection Bureau advises individuals affected by a natural disaster to remain vigilant and be cautious of scams. Protect yourself by avoiding sharing financial information with unverified individuals, monitoring your credit report for fraud, and considering a credit freeze for added security.


6. Explore assistance programs and resources.
   Unexpected natural disasters can cause extensive damage and financial challenges. That's why it's crucial to include a financial plan in your emergency preparedness. Reviewing your bank accounts and keeping important documents handy can make recovering and rebuilding easier. Preparing ahead of time can prevent a natural disaster from turning into a financial crisis. Learn about government programs available in your area for disaster recovery, like grants, low-interest loans, or mental health services. The Crisis Counseling Assistance and Training Program provides funding for mental health support after major disasters. Services are free and offered to everyone affected by the disaster. The IRS website has helpful info about deducting losses, extending tax deadlines, and tips for organizing your records. FEMA crisis counseling link opens in a new window , Ready.gov and USA.gov also offer tips on getting disaster relief help. Knowing if you qualify for these government programs is crucial for getting help promptly when you need it.

Proactive financial preparedness is crucial for weathering natural disasters. Build an emergency financial kit, review insurance and budgets, document possessions, and beware of scams. Explore available assistance programs for added support during recovery. By taking these steps now, you can protect your financial stability and readiness for any unforeseen challenges ahead.