Are You Financially Prepared for Hurricane Season?

Peter Rodriguez, Bank of America Fort Lauderdale

As we enter what’s predicted to be a dynamic hurricane season, many South Florida residents may have an emergency plan, but it’s just as important to make sure you are financially ready.

Here are five tips to help you financially prepare ahead of the significant impacts of a storm:

1. Create a financial first-aid kit. Put copies of any important physical financial documents that might be needed immediately in a waterproof “go-bag,” such as financial statements, utility bills, credit card statements, insurance policy account numbers, health insurance cards, medical records and more. Consider switching to secure electronic delivery for bank, credit card and other financial statements to prevent misplacing hard-copy financial records.
2. Protect and preserve important documents. Store other key papers you’re likely to need in the future, such as recent tax returns, property deeds, and brokerage and retirement account information, in a safe-deposit box or home safe that can resist fire, water or structural damage. You may also consider scanning important documents and uploading them to a reliable cloud-based storage service.
3. Evaluate your insurance. Your current homeowner policies may not give adequate protection around certain natural disasters such as floods. Whether you rent or own, it’s good practice to take pictures or a video of the property — inside and out. Also note the make, model, serial number, and purchase date of big-ticket items such as electronics, artwork or jewelry you may have to leave behind. Lastly, be sure to upgrade your insurance whenever you update your home.
4. Establish a source of ready cash. Even with insurance, disaster-related out-of-pocket costs — including unplanned living expenses, if you’re displaced for a time — can be high. To bolster your emergency savings, consider talking with a financial advisor about potentially opening a flexible line of credit such as a home equity line of credit (HELOC) that you can tap in the event of an emergency. You could also consider obtaining a line of credit secured with other assets, such as your investments, or see if your bank has low-cost, short term loan programs.
5. Share information with family members. In many households, one person may manage most financial activities. It’s important that other family members know what expenses or bills have to be paid, where to locate the checking and savings accounts and how to access other important documents. Having regular family financial meetings to discuss where stuff is stored, and how your filing system works can prevent potential confusion and miscommunication.

No one wants to consider the possibility of a hurricane disrupting their life, but taking practical steps and having a solid financial plan can help you stay resilient when the next storm hits.