In the midst of an escalating climate crisis, cultivating climate resilience is essential to our survival. Emerging from the aftermath of the wildfires in Lahaina, Hawaii, and entering into a season of unpredictable storms, we must remember that anything could happen. Disaster preparedness includes ensuring that home goods, power supplies and other material goods are readily accessible but also ensuring we are financially prepared in the case of an emergency.
George Dines, the common sense millionaire, joined Tonya Pendleton on Reality Check to discuss securing our finances in the face of natural disasters. He used the wildfires in Lahaina as an example of what can happen when catastrophes strike.
“Acres of homes have burned down to the pad. There’s nothing left. Most people did not have time to try to pack up a car or anything because you see all the cars laying on the street. Those folks have nothing, absolutely nothing. How are they going to recover financially?” asked Dines.
Natural disasters that destroy homes and leave people without assets are not just financially taxing but are deeply traumatizing and emotionally overwhelming. The best plan for avoiding chaos is to prepare for anything to happen.
Here’s a glimpse of the financial aspects and planning to consider:
Digital Document Storage: Digitize vital documents like birth certificates, deeds and insurance policies. Having a cloud-based backup ensures you can access essential records even if physical copies are destroyed.
Banking Preparedness: In case your local bank is inaccessible or destroyed, having accounts in multiple branches can save you from losing access to your funds. Inquire about your bank’s disaster recovery plan to safeguard your financial data.
Insurance Knowledge: Carefully review your insurance policies to understand the coverage and exclusions, ensuring you’re adequately protected. Disasters can reveal gaps in coverage, such as flood damage in non-floodplain areas.
Emergency Funds: Building a reserve of one to three months’ worth of cash is paramount. This fund can cover immediate expenses like accommodation, food and transportation during and after a disaster.
Government Assistance: While agencies like FEMA provide aid, their help might take time to materialize. Being self-reliant with a financial buffer prevents undue stress and uncertainty.
Continued Access to Finances: Disasters can disrupt communication and access to banking services. Having a mobile phone and knowing how to use it as a portal to vital information is crucial.
Evolution of Data: Technological advancements make digital storage and retrieval easier. Governments and institutions are transitioning to electronic records for greater accessibility and recovery in emergencies.
Dines also emphasized the often-overlooked aspects of planning like proving property ownership and handling flooded areas. Ultimately financial preparedness for natural disasters requires strategic planning, digital storage solutions and a reserve of ready funds. As Dines aptly puts it, “you can’t predict disasters, but you can certainly be prepared for them.”
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