Yahoo Finance How to Fireproof Your Finances
The wildfires that have destroyed thousands of acres of land and hundreds of homes in Northern California over the past week serve as a stark reminder that all of us should take time to make sure we're prepared for a disaster. Organizing papers, keeping cash on hand and stocking an emergency kit can make weathering a local emergency much less financially stressful.
For those living in an area with a risk of wildfire, the California Society of CPAs recommends knowing how to turn off water, gas and electric lines to your home to help minimize potential damage. They also suggest clearing away brush around your home to help protect it. Your local fire department might have tips geared toward your specific area, as well as recommendations for smoke detectors and free home safety checks.
CalCPA also recommends keeping a detailed list of all your valuable possessions so if you need to submit homeowners insurance claims, you have those details handy. In fact, photos and videos can also be useful when filing claims. CalCPA also reminds people to review their insurance regularly to make sure you have enough coverage to cover the repair or replacement costs of any damage. (If you rent, renter's insurance can protect your possessions.)
Here are some more strategies that can protect you in the event of emergencies ranging from a power outage to a flood to a fire:
1. Plan for alternate housing.
Whether it's a fire, flood or simply lack of power that renders your home inhabitable, sometimes it becomes necessary to seek shelter elsewhere. During heat waves when temperatures remain above 90 degrees and there's no power for air-conditioning, stuffy homes can quickly become inhospitable. It can be hard to breathe, much less sleep. Heading to a hotel may be the only solution, especially for families with young children. (Sometimes local communities offer free public cooling centers, especially during widespread and prolonged outages.)
If you have close friends in the area, perhaps you can agree that you will host each other if your own homes become unlivable, at least for a few days. Or, research in advance to find the cheapest hotel rooms within an hour or so drive. It can be hard to do this when you have no power, and no Internet connection, so printing out an "escape route" and having it handy can be a huge help. You'll also want to share your plan with close family members so they know what to expect and where to find you.
2. Pack an emergency kit.
A well-stocked supply of items can make it possible to shelter in place as well as quickly prepare your exit. Since laundry machines no longer work once the power goes out, be sure to have at least one clean change of clothes for each family member tucked away in an emergency kit. That kit should also include comfort items, especially for children (like a teddy bear), a first-aid kit, any necessary medicine, like pain relief medication, as well as water and portable food items. Flashlights, extra batteries and battery-powered equipment like a radio can also help.
3. Keep nonperishable food on hand.
When refrigerated food goes bad, you can run out of easy-to-make meals, which can result in expensive trips to restaurants or even the inability to find a meal, if restaurants are closed, too. Items that stay fresh regardless of the power status, such as cereals, rice cakes, peanut butter and other packaged foods, can come to the rescue of rumbling stomachs.
4. Keep emergency cash hidden somewhere in your home.
Credit cards and ATMs can stop working during emergencies as well, and you might need money for a quick getaway or to purchase food and water.
5. Make copies of essential documents.
If you have to leave your home in a hurry, as residents evacuated for tornadoes, fires or floods sometimes must, then you might not have time to sort through file folders. That's why it can be useful to keep a copy of any insurance information, contact information for friends and family members, identification and other important papers in a portable file folder. Phone numbers of family members, banks and insurance companies should also be written out in case your phone loses power and you need to look up a number.
With a little prep work, emergencies that require us to leave home -- while still incredibly inconvenient -- can end up taking a smaller toll on our bank accounts.
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