No one wants to imagine the worst. But unfortunately, it happens and sometimes, you might be impacted by that. Natural disasters are hard to predict so being as prepared as possible is the best way to mitigate the damage should you find yourself on the other end of one.
Secure Comprehensive Home Insurance
One of the most critical steps you can take as a homeowner is to ensure that you have comprehensive home insurance. In the event of a disaster, this protects both your home and your belongings so that you can rebuild, renovate, and refurnish your home if it’s damaged in a natural disaster.
It’s vital that you understand the different insurance options on the market. Always check what your policy includes, particularly for natural disasters that are more common in your area. Floods, hurricanes, and earthquakes should all be mentioned, along with additional riders that you may be able to add to cover specific risks like wildfires.
Regularly review your insurance policies to ensure that it reflects the current value of your home and your possessions. Consider updating your policy if you work on any home renovations that add to the value of your property.
This is also a good time to think about your car and life insurance policies too. Look at what each policy covers when it comes to accidents and natural disasters, and talk to your insurance provider if you need additional coverage or an increase in value based on you car’s value.
Create an Emergency Fund
Having an emergency fund is always beneficial, but especially if you should face a natural disaster. You may even want to set aside a specific emergency fund just for this. Money in this account can cushion you and cover any unexpected expenses in the initial days post disaster, like temporary housing, food, and emergency home or car repairs.
It’s possible that you could be restricted from entering your property or even the nearby area in some situations, so make sure you have a backup plan for your finances if you’re unable to work for a period of time or access your essential belongings and need to replace them for the interim.
Set savings goals so you can start putting your emergency fund together. A good goal is at least three to six months of living expenses, which can help cover costs if you’re displaced from your home.
Think about automating your savings to transfer money to your emergency fund to ensure consistent growth in this account. Small, regular deposits can add up over time and build a substantial and robust safety net.
Utilize Personal Loans for Repairs
Disasters can cause significant damage that requires immediate attention, but you don’t always have the funds to cover that straight away. It can also take some time from when the damage occurs to when your insurance company pays out reimbursements for these repairs. If you’re under insured or have no insurance at all, you need some way to cover these costs.
Consider taking out a personal loan for these repairs if you need them to happen before you can move back into your home. Personal loans often have a quick approval process, which is crucial in times of emergency like this. Having a streamlined application process to expedite the loan approval and disbursement means it’s one less stress for you to think about.
Personal loans also come with flexible repayment options that can suit your financial situation. Particularly in disaster recovery situations, local banks will do what they can to support their community and help you ease the burden of repayment during this recovery period.
Manage Finances Remotely
In the midst of a disaster, it’s easy to forget about checking your bank accounts or managing your bills with some many other tasks to worry about. Having continual access, though, is vital for you to be able to get the money you need as soon as possible.
Using online and mobile banking services to manage your accounts, pay bills, transfer money, and conduct other financial admin means that you’re able to handle this from anywhere. It’s a convenient way to stay on top of everything, even when you’re away from home.
Make your online and mobile banking secure by using strong passwords and enabling two-factor authentication. This is especially important when you might be temporarily separated from devices during a disaster. Use a VPN to connect to your bank if you’re using public wi-fi or are on a network away from home.
You should also set up account alerts for transactions, low balances, and other account activity so that you’re alerted to any financial updates as soon as possible.
This is also a good time to talk to your children about their finances and how they can help themselves with their allowance or any savings they might have from a job. Discuss how you plan to manage your money during this time and help them find a good way to do the same. Keeping track of expenses when you need items in an emergency is essential for not overspending, so educating them about budgeting before, during, and after a disaster is an excellent life lesson.
Protect Against Fraud
As much as communities rally around each other when a disaster occurs, it’s also one of the biggest occurrences for crime increases. Criminals take advantage of the chaos and confusion that follows these disasters, so it’s a prime opportunity for them to commit fraud and take advantage of vulnerable people.
Peoples Bank’s Fraud Center offers services to help protect your accounts and personal information, giving you peace of mind during these difficult times. But you should also be proactive in monitoring your accounts regularly for any unauthorized transactions. Early detection of fraud is the best way to minimize potential damage.
You should also educate yourself on the most common fraud schemes and how to avoid them. Peoples Bank provides resources and tips to help you recognize common scams like phishing emails and check fraud.
How Peoples Bank Can Help
Disaster preparedness is about planning and making sure you have the right tools before, during, and after a natural disaster. At Peoples Bank, we’re here to support you with products and services designed to help you through any emergency.
Start preparing today by exploring these options and securing your future.