How to organize your financial life in advance of natural disasters

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NEW YORK (AP) – If you live The part of the world that is prone to wildfiresWhether it’s a flood, hurricane, tornado or earthquake, there are ways to make sure you are. Prepared for disaster beyond insurance.

Federal Emergency Management Association And The Red Cross advises families to collect important documents. And take photos of contacts in a safe place or record video of rooms and any important possessions in your home and keep cash on hand, ATMs and electronic or online banking resources, among other guidelines.

Lisa Birdie, director of policy and research for the Financial Health Network, refers to these measures as “preparation” but says that “to reduce the severity of climate impacts, there is a need to invest in efforts to reduce risks. And reduce financial damage.”

“The key here is to recognize that it’s not just the big news, but smaller events and chronic stressors (such as heat) that have significant financial consequences for families,” Birdy said. “Some of the measures that households are considering (there) … include weatherizing homes and addressing health risks exacerbated by climate-related hazards such as mold and air quality.”

Here’s what you can do to be more financially prepared and organized in the event of an emergency:

First, collect and evaluate

According to FEMA, the first thing is to compile the necessary documents. These include: birth and marriage certificates, social security cards, military service records and your pet’s ID, microchip and vaccination records.

Other organized documents: housing payments, utility bills, credit/debit card information, child support receipts, checking, savings and retirement account numbers, insurance policies, bills, tax returns and wills, according to FEMA.

Medical information on hand includes: health insurance and pharmacy cards, immunization and allergy records, copies of prescriptions, and medical device or disability records.

Also make records of important contacts such as:

“Make sure to store important phone numbers somewhere other than your cell phone,” advises FEMA.

Why is this information needed?

You may need to show proof of ID or income when applying for disaster assistance. You may also need to re-establish financial accounts if checks are damaged or online access is interrupted.

Other records can help you verify the identity of family members, maintain or re-establish contact with family and friends, contact employers, and apply for other types of assistance.

How can I organize my financial life to prepare for disaster?

If you do not have an original copy of the document listed above, contact the appropriate company or agency to request a copy. If you receive paper checks for any federal benefits, consider enrolling in automatic benefits, and if you receive paper checks from an employer, consider applying for direct deposit or prepaid debit cards.

FEMA recommends printing or downloading bills that pay automatically, such as rent or mortgage payments, utilities, loan payments, and membership fees. Downloading banking and billing apps for your phone can also help you stay mobile in an emergency.

Photographing or recording the rooms in your home and any important items is also recommended as record keeping.

Store money with important documents

FEMA and the Red Cross recommend that individuals keep one of their important documents in a safe place to pay for emergency purchases if ATMs are not working or banks are closed. The amount of cash should be based on your family’s basic needs, such as gas, food and medicine.

Make sure your information is updated

Review insurance policies and financial documents to ensure they are accurate and up-to-date – including homeowners, auto and renters insurance.

Store documents securely

Store all files, both paper and electronic copies, in safe places. Consider keeping paper copies in a fireproof and waterproof box or safe, in a bank deposit box or with a trusted friend or relative.

If you’re already using a safe deposit box, check state laws to determine who can and can’t access it if the owner dies or can’t access it on their own due to injury or illness, FEMA advises.

Use a password-protected format to store electronic copies of important documents on a flash or external hard drive, which you can store in a fireproof, waterproof box.

Finally, update constantly

Visit and update your documents regularly.

Updates are especially important when significant changes occur in your life: when your insurance status changes, you move, you open or close bank accounts, you get married or divorced, you have a child, your child changes schools, during retirement planning and if there is a death in the family.

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The Associated Press supports educational and informative reporting from the Charles Schwab Foundation to improve financial literacy. The Independent Foundation is separate from Charles Schwab & Co. Inc. AP is solely responsible for its journalism.