Hurricane - FINANCIAL PREP

[30 cal slut]

From a buddy of mine who works at Morgan Stanley.

If you are like me you are already tired of the hurricane hype. That being said, I have reviewed my emergency preparedness check lists. (I have lists of lists). I am not sure if the storm will hit but I think it is prudent to take a few simple steps to get ready for this one and the next one.

I am sure everyone has extra batteries for their flash lights, bottled water, canned goods, firewood, vehicles full of gasoline, “go bags” and an evacuation plan (in case that old oak tree falls), etc….

The list below will help you prepare financially:


1. Keep $500 - $1,000 in cash in case the power is out for an extended period of time (No ATM). Get some rolls of quarters, dimes and nickels.


2. Call your insurance agent and make sure your homeowners and automobile coverage is up to date.

3. Consider temporarily lowering your insurance deductibles.

4. Get an umbrella policy to extend your protection.

5. Talk with insurance agent about flood insurance (earthquake too).

6. Make two copies of all insurance policies (health, home, auto, life, etc). Seal in separate plastic bags and place in "go bags". Your spouse or partner needs a bag too. See FEMA website to learn about “go bags” and other emergency planning topics: http://www.ready.gov/america/beinformed/hurricanes.html I am only covering the financial aspect of this very broad subject.

7. A copy of each family members passports and other identification should be sealed in plastic and placed in each go bag. School age children should have their own go bags with copies of their own and parents’ identification. The size and maturity of each child will determine contents of his/her go bag.

8. Cash, coins and a few unsigned blank checks should be sealed in a separate plastic bag and placed in each spouse’s go bag.

9. Make a list of addresses and phone numbers of family, friends, financial advisors, insurance agent, CPA, attorney, physicians, etc. Seal in plastic and place in each go bag. Obviously this information is also stored in your (fully charged) cell phones too.

10. A list of all medications and allergies, etc should be sealed in plastic and placed in each go bag.

11. The original documents (all of the above) should be kept in a safe deposit box with a copy of your UPDATED estate plan, automobile titles, deeds, copy of last years tax return, etc.

12. Update the contents of your go bags twice a year. I suggest you do this on the fall and summer equinox. This is the also the day you should change the batteries in your fire alarms and check your credit.

13. Get the family involved and create a plan.

Bad weather and volatile financial markets have two things in common; they are usually overhyped by the press and are always temporary. I hope a weeks worth of weather alerts turns out to be the usual false alarm. If so, we are all better prepared for the next crisis. Good planning helps us prepare for the predictable and unpredictable.

[Naxet1959]

Minor detail about buying flood insurance: There is a 30 day waiting period. So if it hits in 3 days, you still have 27 before coverage kicks in. Its cheap in most cases and worth buying if you're in any kind of flood prone area.