You can be better prepared for a natural disaster or other emergency if you do a little planning now.
Many Americans have thought about how important it is to be ready for an emergency. But very few of them think about being financially ready. Preparing now can make the difference between financial security and a financial crisis. For example, you can keep important documents in an emergency box or set up an account with emergency funds.
These simple tips from the financial experts at Union Bank of California can help anyone prepare financially for a natural disaster:
• Take an inventory of your home
Make a list of valuable items in your home and find the original copies of important financial and family documents. Original documents should be kept in waterproof bags in a safe deposit box or a sturdy "emergency box," while copies should be kept in a safe place. Use a CD to back up your computer's important files. If it's possible, keep copies with friends or family who live far away.
• Learn about your insurance plans
Find out what kinds of losses your renters or homeowners insurance will pay for. Ask your financial planner or insurance agent about extra coverage for floods, earthquakes, home offices, and expensive items. Keep copies of your policies and other important papers in a safe place.
• Keep money handy
Keep at least $300 in cash at home in an easy-to-reach place in case you have to leave quickly. For ease of use, the money should come in small amounts.
&8226; Make and keep a list of people you can call in case of an emergency.
Keep a list of important emergency contacts, such as direct family members, doctors, medical facilities, and the phone numbers for your bank, insurance agent and company, lawyer, and financial planner or advisor. You can get account information quickly by calling the 1-800 number on the back of your credit card.
• Have a savings account for emergencies
This account should not be linked to any other account, and it should have enough money to cover living costs for at least three to six months.
Ronald Kendrick, the Executive Vice President of Union Bank, said, "We've learned from the aftermath of recent natural disasters that financial preparedness is not always at the top of people's minds." "Follow these rules to keep yourself and your family financially safe."
