Are You Financially Prepared for Hurricane Season?

By Lee Cox
Bank of America
Charleston-Hilton Head

Hurricane season begins June 1, and while forecasters are predicting a somewhat below-normal Atlantic season this year, below-normal is not the same as no risk. For Lowcountry residents, it only takes one storm to make it a significant season.

Having an emergency plan is a start, but making sure you are financially ready is equally important. Here are five tips to help you prepare:

1. Create a financial first-aid kit. Put copies of any important physical financial documents in a waterproof “go-bag,” such as financial statements, utility bills, credit card statements, insurance policy account numbers, health insurance cards, medical records and more. Consider switching to secure electronic delivery for bank, credit card and other financial statements to prevent misplacing hard-copy financial records.
2. Protect and preserve important documents. Store documents you will need later, such as recent tax returns, property deeds, and brokerage and retirement account information, in a safe-deposit box or home safe that can resist fire, water or structural damage. Scanning and uploading important documents to a reliable cloud-based storage service adds another layer of protection.
3. Review your insurance coverage. Standard homeowner policies often do not cover flood damage. Whether you rent or own, it’s good practice to take pictures or a video of the property — inside and out. Also note the make, model, serial number and purchase date of big-ticket items such as electronics, artwork or jewelry you may have to leave behind. Review your coverage annually and update your policy any time you make significant improvements to your home.
4. Establish a source of ready cash. Even with insurance, disaster-related costs can add up quickly, especially if you are displaced for an extended period. To strengthen your financial cushion, consider speaking with a financial advisor about options such as a home equity line of credit (HELOC), a line of credit secured by investment assets or short-term loan programs your bank may offer. Having access to flexible credit before a storm hits is far easier than trying to secure it after.
5. Share information with family members. In many households, one person may manage most of the finances. It’s important that other family members know what expenses or bills have to be paid, where to locate the checking and savings accounts and how to access other important documents. Having regular family financial meetings to discuss where stuff is stored and how your filing system works can prevent potential confusion and miscommunication. No one wants to think about a storm disrupting their life, but preparation is the most practical form of resilience. Taking these steps today puts you in a stronger position when it counts most.

For more details about how to prepare for a natural disaster financially, visit www.BetterMoneyHabits.com.