Monthly Archives: November 2015

Unexpected Disaster Could Ruin You Financially If Your Not Prepared

There can be no doubt, the United States has seen an unprecedented level of natural disasters in the last 10 years. Katrina, Sandy, The Tornado Outbreak from May 26 – 31, 2013 that saw a record 93 tornadoes rip through the United States Great Plains States. The Moore Tornado in 2013 with winds of 210 miles an hour, just to name a few. Earthquakes, floods, tsunamis, hail, hurricanes, tornadoes and lightning strikes are just some of what mother nature can dish out, and all of these things can cause massive destruction and even the loss of life. Humans by nature always feel that only good things, or at worst moderately uncomfortable things will happen to “them”, our mindset is always “bad things happen, but to other people, I will be fine”. Yet recent history shows us we are living in a turmoil filled time.

roofdmgimage source, jarvis construction

If you fall into that mindset, you should consider the possibility that something could happen in the region that you live in. This is especially true for anyone living near any body of water, anyone living in hurricane prone or tornado prone areas. Even areas where wild fires are common. Often times even those who do plan leave out one all important factor in their plans, preparing their finances to handle natural disasters. Survival kits, emergency food and water and evacuation plans are all well and good, but do you have plans for securing your finances? Lets examine some things you can do today to better prepare yourself just in case the worst possible scenario comes to pass.


Examine your insurance policies

You see it all the time on the news, in the after math of any natural disaster, that thousands of home owners and business owners in the effected area were under insured. It is easy to over look this fact, but the sad truth is that most standard insurance polices do not cover natural disaster, but rather cover trivial things such as a house fire due to faulty wiring. You need to go over your existing insurance policy to see what it covers, and under what circumstances does that coverage kick in, then examine what natural disasters your region is prone to. You can always purchase insurance riders for additional coverage, and if disaster strikes you will be glad that you did, unlike your neighbors who are going without this vital protection.

Full Replacement Coverage
Yet another insurance topic. This one is vital however. What good is insurance if it only covers 40%, 50% or 60% of the value of your property and personal possessions. Even if your policy covered 60%, do you realize how much money replacing that lost 40% would take? Some people never ever recover fully on polices that pay only partially. To avoid landing in this predicament, you should consider full replacement coverage. Yes you will pay more for such a policy, yet it is so worth it should you find yourself on the wrong end of a natural disaster.

Renters
if you are renting you still need coverage. Yes your landlord likely has coverage, but this coverage does you not one bit of good, as it covers only the building, that the landlord owns. It does not cover any of your belongings. If you want your personal possessions covered and you rent, you have only one option, renters insurance. The better polices will even cover relocation costs, which if you have ever had to move, you know can cost a pretty penny. The good news is that renters insurance can be pretty cheap.

Documents
You want to ensure that your documents are protected. Renting a safety deposit box can assure that your documents are better protected. That or investing in a fire proof and water resistant safe for your home or apartment. Everything from the deed to your home, birth certificate to marriage license should be safe guarded. You should also make copies and have these copies sent to your attorney just to be safe, or family that resides in another geographical location.

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