How To Protect Your Finances From A Natural Disaster

Thursday, September 21, 2017
photo via

In the wake of hurricanes Harvey, Irma, and Maria, it’s not difficult to think about the mass destruction these storms cause and to consider your own protection. After seeing the devastation Mother Nature can cause, it’s only natural to think about hurricane-proofing your home if you live in a hurricane prone area. But your physical home isn't the only thing that can be vulnerable to a hurricane. There are other considerations to make that can keep you in good financial standing if a hurricane were to strike.
Review Homeowner's or Renter's Insurance Policies
Most natural disasters are not usually included in a standard policy. In insurance jargon, they put it down to an “act of God” and chalk it up to bad luck. If your property gets hit by a storm or a hurricane, it can cause thousands of dollars in  damage. Even worse, the cost of the repairs will come from your pocket. To avoid extra expenses, call the insurance company and negotiate an amendment to the policy that includes natural disasters.

photo via
Protect The Building
A disaster can obliterate a home in minutes. You want to be sure that as the years pass in your home ownership, you are building equity in your home. That means that the value of the home is increasing while what you owe on the home is decreasing. If your home is destroyed, the loan service you found on might not be available after the fact. The key, of course, is to protect the building and limit the damage. Add waterproof elements such as sandbags. Board up the doors and windows to prevent any flying debris from breaking glass and wood. Finally, remove the exterior of any clutter. In high winds, it can turn into dangerous shrapnel.

Protect Important Documents
There is certain information that you will need should there be an incident. Without it, the insurance company or local authority might not accept your claim as legitimate. If this happens, it can leave you in a tight spot without a home to live in or any money. Thankfully, is able to protect these documents by keeping them off-site. This means you should make copies and store them in a safe place away from the house. The originals need putting in waterproof bags and locking in a safe that is easily accessible. Hopefully, this should help you access any vital data in a crisis.

photo via

Keep Spare Cash On Hand
A savings account is a sound investment, but so is an additional savings account. Think of it as the ultimate contingency plan. How it works is simple: you put money away for a rainy day (literally). It shouldn’t have anything to do with savings such as a pension scheme or the kid’s college tuition. This money is spare and for one purpose only. Although it seems a tad over the top, an emergency fund can keep you going for months.

No comments