Preparedness Includes Your Wallet

Emergency planning usually brings to mind flashlights, batteries, and bottled water.

But disasters are financial events, too.

A power outage, flood, storm, or evacuation can interrupt access to banks, damage property, and create unexpected expenses. A few simple financial preparations can make recovery easier.

Start with cash.

According to Ready.gov, power outages can take ATMs and card readers offline, making electronic payments difficult or impossible.

Keeping a modest amount of cash in small bills can help cover basic purchases such as food, fuel or other necessities until normal service returns.

Store it somewhere safe and secure.

Insurance is another part of emergency planning that is easy to overlook.

Review your policies before disaster strikes so you know what is covered, what is excluded, and what your deductible would be.

One important example is flooding.

Standard homeowners insurance policies generally do not cover flood damage. Separate flood insurance may be available through the National Flood Insurance Program or private insurers.

Federal officials also note that National Flood Insurance Program policies typically have a 30-day waiting period before coverage takes effect, with some exceptions.

That means waiting until a major storm is approaching may be too late.

Financial preparedness does not have to be complicated.

A little cash, a clear understanding of your insurance coverage, and copies of important financial documents can make a difficult situation easier to manage.

Emergency planning is not only about getting through the first few hours.

It is also about making recovery less costly and less stressful once the immediate danger has passed.