Category: Emergencies

How financially prepared are you if a weather disaster strikes?

Last year was the fifth year in a row that 10 or more weather and climate disasters in the US logged at least $1 billion of associated losses. If you think 2020 threw everything it had at us and will now ease off, think again. While we all have our hands full with navigating the new realities of life under Covid19, nature is relentless and doesn’t slow down. Most Americans agree. According to a recent survey by American Institute of CPAs (AICPA), 61% or respondents said they were likely to be personally affected by a natural disaster in the next three to five years. Almost one in five said that prospect was highly likely. (see ThinkAdvisor: Few Americans financially prepared for a natural disaster: survey.)

Despite that, “… only 15% of respondents said they had created a disaster plan to protect their finances. Worse, 27% had not taken any steps at all to prepare for a natural disaster.” That’s rather daunting. Think about the problems and logistics in a hurricane, massive wildfire, or flood evacuation in the middle of a pandemic: public emergency resources are already strained. Plus, social distancing measures important to disease prevention will make things like finding emergency shelter and supplies even more challenging than normal at a time when many are suffering financial strain and economic strain from job loss.

AICPA has suggestions for financial emergency prep steps in their report on the survey:

Banking Without the Bank — If your bank branch is closed due to the pandemic, you may need some new options for accessing cash, depositing funds, and checking your account activity. Now is a good time to investigate alternative locations where you can use your ATM card to obtain cash without additional fees, and perhaps mobile banking which can allow most banking activities including check deposits and transfers between accounts.

Insurance Coverage — If you haven’t recently reviewed your coverage with your insurance agent, you’ll want to be sure your homeowner’s or renters insurance is up to date for changes in value, valuable items you’ve added like jewelry or watches, and special risks you may face like flooding. As a first step, be sure you know how to contact your agent, who may be working remotely or with a reduced staff under current conditions.

Safe Deposit Box — If you have documents in a safe deposit box that you may need after a disaster, you may find that your local bank branch is closed or operating under restrictions. You can check with the bank’s main office to learn how to access the box if local restrictions apply and may continue.

Wills, Powers of Attorney, and Health Care Proxies — If disaster results in incapacity, loss of a loved one, or serious injury, you’ll want to be sure that your legal paperwork is up to date. Your attorney may be working remotely under pandemic- related conditions. If your papers need an update, it pays to get a head start in contacting the professionals you will look to for help and advice.

Employment-Based Programs — Visiting your human resources department to check on items that may help you manage through financial survival in a disaster, like your disability coverage or ability to borrow from a 401(k) or similar retirement plan, is likely not an option if your workplace is closed due to the pandemic. You can take steps now to learn how to get the information you need, and request any needed updates, by phone or online.

AICPA offers more help at the 360 Degrees of Financial Literacy portal – see Disaster Action Plan: 5 Key Steps to Protect Your Family and Finances.

Other emergency prep planning tools:

 

 

 

Reprinted from Renaissance Alliance – no usage without permission.

Prepping for an active hurricane season in a pandemic

As if we all didn’t have enough on our plate this year – the National Oceanic and Atmospheric Administration (NOAA) is alerting us that we can expect an above-normal 2020 hurricane season, with 3 to 6 major hurricanes. The season runs from June 1 through November 30, so we have just dipped a toe in the water so far. CoreLogic’s annual Storm Surge Report estimates that yearly 7.4 million single and multi-family homes are at risk of storm surge – potential damage that could be intensified by the pandemic and the uncertain economy.

Emergency preparation for hurricanes is a vital priority every year, particularly for those who live in the southeast and in Atlantic coastal areas. This year, the pandemic poses additional planning challenges. NOAA says:

“Social distancing and other CDC guidance to keep you safe from COVID-19 may impact the disaster preparedness plan you had in place, including what is in your go-kit, evacuation routes, shelters and more. With tornado season at its peak, hurricane season around the corner, and flooding, earthquakes and wildfires a risk year-round, it is time to revise and adjust your emergency plan now,” said Carlos Castillo, acting deputy administrator for resilience at FEMA. “Natural disasters won’t wait, so I encourage you to keep COVID-19 in mind when revising or making your plan for you and your loved ones, and don’t forget your pets. An easy way to start is to download the FEMA app today.”

Vox offers a deeper dive on some of the challenges that a hurricane could pose: Imagine Hurricane Katrina during a pandemic. They note that response systems are already on overload and that evacuation and sheltering would have additional complications, suggesting that decisions about when to evacuate vs when to shelter in place may need to change:

Emergency evacuations are typically called for based on the expected impact of the hurricane, and may involve large populations moving to concentrated locations like emergency shelters or hotels — or leaving the area entirely. Even without a disease outbreak, evacuation decisions are always difficult, both practically and politically. The decision process should be altered during an epidemic because usual evacuation risks (traffic accidents, for example) will have to be balanced against the risk of increasing disease transmission, which could have longer-term effects than the hurricane itself.

The pandemic makes clearly communicating exactly who should evacuate even more important: Those in the storm surge zone should go while others should be encouraged to shelter in place and be prepared for wind, rain, and power outages.

Emergency prep is important up and down the coast, including in new England.  While hurricanes are a rarer occurrence in New England, the region still thinks back on the devastation of 1938, a hurricane which killed more than 700 people. Meteorologist Matthew Cappucci wrote a fascinating report of the great New England hurricane of 1938, which includes projections of damage that could occur today if the region were to experience a similar storm.

If you already have a disaster or a hurricane plan for your family or your business, update it to encompass the realities that the pandemic has imposed on your local area. It’s even more important than ever to have a checklist and to store supplies for up to a week. In addition, expand your time horizon – you may need additional time to execute any evacuations.

One preparation recommendation from nearly all safety officials: download the FEMA app and check your state or local emergency management authority for any available apps. Red Cross has a variety of excellent emergency prep apps.

We’re reprinting some tips about hurricane prep during a pandemic from the Houston Office of Emergency Management, and also include links for other prep tools and guides.

  • Understand that your planning may be different this year because of the need to protect yourself and others from COVID-19.
  • Give yourself more time than usual to prepare your emergency food, water, and medicine supplies. Home delivery is the safest choice for buying disaster supplies; however, that may not be an option for everyone. If in-person shopping is your only choice, take steps to protect your and others’ health when running essential errands.
  • Protect yourself and others when filling prescriptions by limiting in-person visits to the pharmacy. Sign up for mail order delivery or call in your prescription ahead of time and use drive-through windows or curbside pickup, if available.
  • Pay attention to local guidance about updated plans for evacuations and shelters, including potential shelters for your pets.
  • If you need to evacuate, prepare a “go kit” with personal items you cannot do without during an emergency. Include items that can help protect you and others from COVID-19, such as hand sanitizer, or bar or liquid soap if not available, and two cloth face coverings for each person. Face covers should not be used by children under the age of 2. They also should not be used by people having trouble breathing, or who are unconscious, incapacitated, or unable to remove the mask without assistance.
  • When you check on neighbors and friends, be sure to follow social distancing recommendations (staying at least 6 feet, about 2 arms’ length, from others) and other CDC recommendations to protect yourself and others.
  • If you need to go to a disaster shelter, follow CDC recommendations for staying safe and healthy in a public disaster shelter during the COVID-19 pandemic.

Additional hurricane prep tools

 

Reprinted from Renaissance Alliance – no usage without permission.