Climate change has put many people in the path of major natural disasters. Fires, floods, hurricanes and wind storms are devastating communities.
As of Tuesday, there had been 15 confirmed weather/climate disaster events in the United States this year with losses exceeding $1 billion each, according to the National Centers for Environmental Information. Damage from 2022 disasters totaled $165.1 billion.
Swift-moving wildfires, fanned by winds from Hurricane Dora, have killed dozens in Maui. Video and photos show burned homes and businesses. Lahaina, a popular tourist destination in western Maui, was hard hit.
Right now, displaced residents are focusing on their basic needs — shelter and food.
However, many may soon face a new challenge — recovering pay stubs, insurance papers, bank statements and any of the other financial records that are the bane of our modern-day existence. Many businesses have been destroyed, raising the possibility of lost work records, too.
The disaster in Hawaii is just the latest reminder to get our financial houses in order. Here’s what you should do.
Prepare for a quick evacuation
Get a safe that’s waterproof, fire-resistant and light enough to carry. Keep all your household’s important financial documents in this box, including your passport; insurance policies; extra checks; a copy of your driver’s license; your Social Security card (or at least write down the number); bank, investment and credit card account numbers; and key legal documents such as wills, marriage and birth certificates, and the titles to your home and vehicles.
You should include some cash or traveler’s checks. If the electricity goes out, as it has in many areas in Maui, ATMs may not work and you might not be able to use a credit or debit card to make purchases.
Keep the original receipts of major purchases in the safe, as proof of what you spent.
Back up important financial documents
In addition to keeping your paperwork in a safe, make photocopies of your documents and place them in a safe-deposit box or give them to a trusted relative or friend who does not live in the same area you do.
You can also back up your data to cloud-based services such as Google Drive or Apple’s iCloud. Be sure to consistently back up your data to the cloud.
Make a list of major household items
With your smartphone, take pictures of your big-screen televisions, computers, furniture, heirlooms, etc. You want proof of the expensive stuff you own.
You might also want to record a video of the items in your home. Record model and serial numbers. Then, of course, download it for safekeeping in the event you have to prove to an insurance company what items you lost in a disaster.
Assess your insurance needs
Part of your disaster plan should be determining whether you’re carrying the right amount of insurance.
Now is the time to evaluate whether you have enough coverage. Call your insurance agent. Will your policy replace the full value of your possessions?
Do you have life insurance?
Many people neglect to get disability insurance. If you were injured in a natural disaster, would you be able to live off your savings? Buy enough disability insurance to replace 60 to 70 percent of your income.
What if your home is flooded?
Homeowners and renters insurance do not typically cover flood damage; coverage must be purchased separately. Even if you’re not in a high-flood-risk area, you may still need supplemental coverage.
The National Flood Insurance Program, managed by the Federal Emergency Management Agency, helps you purchase flood insurance from an insurance company or agent. If you need help finding a provider, go to floodsmart.gov/find or call 877-336-2627.
Just one inch of floodwater can cause up to $25,000 in damage, according to the NFIP.
On average, flooding causes more than $5 billion in damage nationwide each year, according to NFIP. Hurricane Ian alone resulted in more than 46,000 claims and $1.5 billion in policy coverage.
You have to plan ahead, because typically there is a 30-day waiting period for an NFIP policy to go into effect, unless the coverage is mandated.
For information on flood insurance, go to floodsmart.gov.
Homeowners with mortgages have to carry homeowners insurance, but renters often neglect to protect themselves.
If you are renting, get renter’s insurance — the insurance your landlord carries does not cover damage to your personal possessions.
Natural disasters are only getting worse with climate change. It’s wise to be prepared in case your home or community is hit.
